Today, I will discuss the importance of Clearly defining your goals to overcome this issue: A great way to start is by crafting an Investment Policy Statement that outlines your objectives. It should also clearly define what you will be investing in, why you are investing in it, and how it will help you achieve your goals. Referring to your IPS when in doubt can help you stay on track during tumultuous times.
Too often, investors get influenced by the distractions around us. This includes friends, the talking heads on TV, and social media influencers who don’t know anything about investing but pretend to. In the world of investing, and in life in general, if you have your goals clearly defined it is much easier to stay on track.