Should You Be More Active With Your Portfolio?

June 18, 2019
There are a lot of ways your emotions and biases can get in the way of buying or selling a stock. What are some strategies to try to overcome these traps?

Listen on Apple Podcasts, Google Podcasts, Spotify or copy to your RSS reader.

Transcript Open new window

After you listen

  • If you'd like to read more about trading strategies like the ones explored in this episode, check out schwab.com/tradinginsights.
  • And you can also watch Schwab experts discuss buying and selling stocks live each business day at schwab.com/livedaily.
  • If you'd like to read more about trading strategies like the ones explored in this episode, check out schwab.com/tradinginsights.
  • And you can also watch Schwab experts discuss buying and selling stocks live each business day at schwab.com/livedaily.

Trading is a crucible of emotions and analysis. During volatile markets and periods of economic change, it is common for regular investors to ask whether they should be more active with their portfolios. In this episode, Mark Riepe is joined by Randy Frederick, director of trading and derivatives at the Schwab Center for Financial Research. Mark and Randy review a list of biases that have an impact when you're making trading decisions, and then they discuss techniques that can blunt the impact of those biases.

  • This study of day traders using real money revealed the link between emotions and trading performance.
  • This study from the Journal of Marketing Research documented the tendency of investors to repurchase stocks they previously sold for a gain rather than ones they previously sold for a loss and repurchase stocks that have lost value subsequent to a prior sale rather than those that have gained value.

Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.

Financial Decoder is an original podcast from Charles Schwab.

If you enjoy the show, please leave us a rating or review on Apple Podcasts.

We can help you manage your portfolio.

Dollar-Cost Averaging vs. Lump-Sum Investing

Is dollar-cost averaging better than lump-sum investing? Find out which approach may be best and could be worth considering.

Reaching for Yield: Income Investments Bring Risk

During times of market volatility, many investors look for yield in fixed income and dividend stocks. But there's risk in these investments. Learn what they are before investing.

Tips to Maximize Your Savings Near Retirement

The five years before and after retirement are among the most important—and vulnerable—for your savings. Make the most of your later years by getting ahead of the potential risks.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Investing involves risk including loss of principal.

Past performance is no guarantee of future results.

This is for general informational purposes only and is not intended, nor should it be construed, as tax, investment or legal advice. Consult with your legal counsel and tax advisors about your particular circumstances.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

0619-9406