"Information overload" may be especially problematic when we don't have a plan or don't stick with our plan. For example, we may have a long term goal for a stock, but then short term information gets presented, and we act on it, abandoning our original thesis. This can lead to over-trading, chasing the news, and ultimately, regrets.
Information overload is making us dumber investors
.jpg)
BY JEFF REEVES'S STRENGTH IN NUMBERS
Excerpt:
We live in an age of seemingly infinite information, and that’s great in many ways. But that doesn’t make investors any smarter.
Stock research was a problem in years past, with earnings data and other key information slow to trickle out. Now, 10-Qs are posted on investor relations websites in short order, and thanks to screening software, a savvy investor can size up a company or an entire industry sector in a few hours.
But the glut of information presents a challenge of its own, as many investors become overwhelmed by headlines and analysis. There are many valuable tools and reports out there, but there is also a lot of noise — and that makes acting on the facts that really matter increasingly difficult.
[…]
