2. Don’t Be Fixated With the Market
While everyone should be investing, Bogle said: «Don’t be fixated with the market. Instead, focus on the fundamentals of the company or economy that you are investing in.» Although there is a dollar value assigned to each stock counter, it is merely a value that investors put on the stock.
This means that it is subjected to the perspective of investors at each point in time. As such, the stock market is prone to noise and goes up and down as investors’ perspective changes. These stock market movements can be a huge distraction to your investing, especially for new investors who are not used to movements in the stock market.
If you are investing in the market and become too fixated with the market, you will be prone to making irrational decisions like selling low and buying high.
