Why Trading in Retirement Is a Bad Idea

Why Trading in Retirement Is a Bad Idea

Market timing is a sucker’s game, and trading in retirement is a very bad idea. Mr. Naples, described in The New York Times, “learned that it’s hard for an individual investor — even a retired one with lots of spare time — to outdo the pros and beat the market’s maddening volatility.” Researchers Odean, Andrade and Lin completed a study and found that “investors naturally get excited by investing during bubbles and are often blinded by emotion. If they’re excited about, say, tech stocks, they buy more of them. Because no one quite knows when it’s time to leave an inflated market or when to return and shop for bargains, millions of people guess wrong or follow the current trend.” During retirement, it’s best to put your investment in a passively managed portfolio so you have more time spending with your loved ones and on important stuff in lives. Just don’t follow any day trading program during retirement. (nytimes.com)

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