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.

SPACs: What Investors Should Know Now

The speculative exuberance around special purpose acquisition companies (SPACs) seems to be over, but investors still have questions about them. They are incredibly complex vehicles and differ widely in size, structure, and quality.

Where Should You Hold Your Cash?

Consider ease of access, insurance, and yield when deciding where to hold your cash.

3 Reasons to Consider Putting Your Cash to Work

A high cash balance can limit your growth potential. Take a look at three reasons why you should consider putting your money to work for you sooner than later.