Morning Report Monday 23 February 2015
The best performance comes from well-timed patience
Investors can be very tempted in today’s low brokerage environment to buy & sell too frequently. When I started in the industry almost 30 years ago, brokerage was 2-2.5% and now it’s close to 10% of these levels, this should bring enormous benefits to investors but it often has the reverse effect. The reality is too many investors trade too frequently. With the convenience of cheap brokerage and the ease of on-line trading accounts, these perceived beneficial factors are more often a financial impairment to the majority of retail Australian investors. Before you trade consider the following 5 questions:
• Why are you selling, why is somebody buying, am I trading on old news, are you improving your portfolio, is doing nothing or cash a better option?
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