"There is always going to be some sort of story of the day that does affect the market and whether it goes in one direction or the other," says Portfolio Advisors Lead Financial Advisor, AJ Flores. "Having that immediate interaction with the apps the way we do does tend to lead to more emotional decision-making."
Flores reminds his clients that if they want to keep a close eye on their portfolio, it's important to avoid panic-driven decisions.
"If you are building something for the long term, looking at it day to day doesn't really change a whole lot of the equation," he said.
He says being an investor means accepting some level of risk, but that level is different for everyone so decide where you're comfortable.
"We take on this risk with the expectation we'll be compensated for it in the eventual growth of the stock or the market in general," Flores said. "If you are investing consistently over time and market volatility occurs, well, you're actually buying stocks at a discount, so volatility can be your friend if you let it."
Consider what the money is for: retirement? an upcoming purchase?
The further out that goal becomes, the more time you have to ride the ups and downs of the market.
"Time in the market beats timing the market," Flores said. "At any given point, we don't know what the market is going to do next. A week from now. A month from now. A year from now. Rather than deciding on a certain market threshold to become an investor, it makes more sense to participate along the way."
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