Investor Inertia

You may have heard an old saying that goes like this: "If you always do what you always did, then you'll always get what you always got!" That statement ought to be food for thought for every investor.

I believe that one of the main obstacles preventing most investors from achieving a greater degree of success as a result of their investing efforts is the fact they suffer from a condition which I term, "Investor Inertia."

What is that?

"Investor Inertia" is a natural tendency to continue to do on a regular basis that which we as investors have grown accustomed to doing. And we do this on a daily basis without really recognizing that if we continue to do it, we will produce the same results tomorrow as we had yesterday!

Some people wonder what exactly is the primary obstacle to becoming a successful investor. Is it lack of money, lack of knowledge, or perhaps lack of time? The answer, I believe, is that while one or more of these problems can pose a temporary hindrance to us as investors, the greatest obstacle of them all is "Investor Inertia."

The issue is not lack of money, as any determined person can always find new avenues to increase his or her income. The issue is not lack of knowledge as we live in the midst of a veritable information explosion, so knowledge is available merely for making the effort of seeking it out. And the issue cannot be time, because most of us waste a significant portion of each day by involving ourselves in mundane activities where the time spent could easily be redirected toward more worthwhile pursuits.

So the answer pure and simple is "Investor Inertia."

If, every time you turn your attention toward your portfolio and continue to do with it what you did the day before, you will produce the same results tomorrow as you did yesterday. It's that simple!

But if, on the otherhand, you created a game plan to produce results that are in harmony with your tolerance for risk, and are also consistent with the goals you have determined to be your personal objectives as an investor, and you act consistently in accord with those goals and objectives, you will produce a different and a more positive result.

You cannot expect different results to occur if you do not act differently!

"Investor Inertia" is a very powerful force. It almost compels you to want to do tomorrow the same thing you did today in your approach to investing. And if you allow yourself to fall victim to it, then you will continue to produce the same exact results you always have. What you need to do in order to counter this pattern is to generate an act of will, followed by very specific conduct.

So how do you break the pattern? It's simple. Create a game plan, commit yourself to this new game plan, execute it daily without any question and without any exception. And never forget - you have no greater reward as an investor than when you overcome and beat "Investor Inertia."

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