Think about the last time you had to wait in line...
Like when you got stuck in terrible stop-and-go traffic. Maybe you took the next exit to find another route home... only to encounter more delays that cost you even more time.
This is a classic case of human behavior called "action bias." We're not programmed to sit and wait. We want to act... to take the next exit... to do anything but stand still.
It's at the heart of investing as well. Sometimes the hardest thing to do with your investments is nothing.
Most folks see changes in the market and want to jump in and start trading right away.
One of the main drivers of action bias is something called "notional losses," or paper losses. Basically, at some point when our portfolio loses too much, we get scared and start selling. Think of it as our "breaking point." We can only sit still for so long. We don't want to wait for a correction or study up on cyclical activity. We see our stocks "slipping into the red" and we panic.
Resisting this urge to act helps in the long run. But that doesn't mean you should never sell, especially if you're retired or nearing retirement. You don't want to be stuck "holding the bag" when the market crashes.
So you end up with a major choice with your investments... When is it right to sit and wait and when is it right to sell?
That's where Dr. Richard Smith comes in.
Richard is one of the smartest guys I know. He studied math at Berkeley and went on to receive a PhD in math and systems science – studying complex systems and mathematical uncertainty.
He's used that education to create a sophisticated program that takes the guesswork out of investing.
In fact, you might remember how we've told you several times not to time the market. It only leads to selling at the wrong time and either missing out on gains or taking huge losses. Acting too impulsively can destroy years of hard work.
What Richard has done is essentially build an "alarm clock" that gives you the ability to let your winners run, cuts your losers, and lets you know exactly when to sell with total confidence.
His system works so well that he's consulted for industry giants like Johnson & Johnson, Pfizer, and New York State Electrical and Gas, just to name a few.
This isn't hyperbole.
It's a way to sidestep huge drops in the markets before they happen. In fact, we use his system for alerts on our portfolios in my newsletters. They're that good...
Porter summed it up the best when he said "You're not going to succeed as an investor without this."
And tomorrow, Thursday, October 5 at 7 p.m. Eastern time, Richard is going to explain his system in an exclusive webinar.
He's going to walk us through a way to know exactly when to sell some of the most widely held stocks in the market.
So instead of jumping at every market shift and acting too impulsively, let Richard show you how to set an "alarm clock" for the market. It's the one thing you should do in 2017 to protect yourself from the kind of gut-wrenching declines like we felt in 2000 and 2008.
I highly recommend you attend to learn more about Richard's method. Click here to reserve your space today.
What We're Reading...
- A breakdown of action bias and your finances.
- Something different: Would you tour a cemetery?
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Retirement Millionaire Daily Research Team
October 4, 2017
P.S. Here's something else you can look forward to. If you head over to www.AskRichardSmith.com a little before 7 p.m. and stay for the entire event, you'll hear about a way to get $1,000 of credit toward any Stansberry Research product you choose. Don't miss this rare deal!