My Strategy for Market Volatility

2011 was an incredibly volatile year in the stock market.  It seems like every day the indices move at least a percent.  What’s a long-term, buy-and-hold investor to do?  I have heard financial advisors suggest that you only check your portfolio balance once per year to prevent freaking out.
 
I used to check my IRA balance about once per month to record my progress.  Now that I listen to APM’s Marketplace daily I always know what’s going on with the Dow, S&P, and NASDAQ and I’m definitely tempted to look at my accounts more often (though not tempted to change my buying/selling behavior).
 
My solution is to only check my investments when the markets have had a good day – when they’ve increased by 1.5% or more.  That way I’m always happy with what I see (as long as I don’t look to hard at the previous balances)!
 
How do you handle the volatile market?  What do you think of my optimistic strategy?
 
photo from OmirOnia
 

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Filed under: psychology, stock market

2 Responses to "My Strategy for Market Volatility"

  1. Great suggestion. people tend to make rash decisions on down days and you just need to remember that this is a long term portfolio.
    Sean @ One Smart Dollar recently posted..Disney Premier Visa Credit Card from Chase

  2. […] at peek at our Roth IRA account balances in Mint after the market close on 7/12/2013.  (I try to only look at our Roths after big upswing days – that way I always feel good!)  This is what I […]

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