I haven’t been very active on here lately because of the work grind and family responsibilities (all good things!) but since I have some time waiting while my daughter is in her hip hop and acro classes, I figured I’d take the opportunity to write a few thoughts! I have a few simple, perhaps unconventional, investing habits that I feel works for me, which I recently shared with a friend. We were comparing how we invest. Below are some habits I brought up. Not necessarily practices I’d recommend others to follow. Every investor has different financial circumstances, goals, and risk tolerances, so it’s important to assess what makes sense for yout own situation. 1) I don’t always invest immediately - when I deposit money into my investing account I sometimes wait a week or two for a dip in the stocks or ETFs I want to buy. I recognize this is a form of market timing, and research generally shows investing sooner tends to outperform waiting. Still, I prefer being a little selective about my entry point without waiting indefinitely for the perfect price. 2) I practice DCA, but I don’t automate my investments - I invest consistently, usually around paydays, but I prefer manually transferring my money and deciding how much to allocate at a given time. Most often I invest the same amount every month, but I like to choose which day that is (aligns with my point 1 above). I enjoy being intentional which each contribution rather than everything happening automatically. Maybe I’m a bit of a control freak too lol. Since I occasionally wait for dips before buying, my approach combines regular contributions with some market timing rather than strict dollar cost averaging (DCA). 3) I track every contribution in a spreadsheet- even though my brokerages (Questrade and Wealthsimple) tracks deposits, I maintain my own spreadsheet to monitor annual contributions, document milestones, and measure progress toward my investing goals. Plus a love a good spreadsheet! I update it regularly (every time I deposit) because I like the satisfaction of seeing how much I’ve personally contributed separate from market performance. 4) I check my investments everyday - while conventional advice often suggests checking your portfolio less frequently, I prefer staying informed on a daily basis as I find it motivates me, gives me a sense of satisfaction, and makes me feel confident in my financial decisions. I’m not a person who makes hasty decisions so I’m not worried that I’ll suddenly sell any investments in a market dip or downturn. So this works for me. 5) I don’t automatically sell my individual stocks just because they’ve performed well - I don’t believe that a significant gain is necessarily a reason to take profits. If the fundamentals remain strong and my original investment thesis still holds, I’m comfortable letting my winners continue to grow. Of course I’ll consider whether a position has become too concentrated in my portfolio. For me, selling should be based on a reason beyond simply being up a certain percentage. $AMD has done really well and I’m still holding! This is a reflection of my personal investing experience, not financial advice. What are some uncommon or unconventional investing habits you have that works for you?
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4 Comments
Matt @griff79 · 6h
My daughter danced for 15 yrs so I’ve been there waiting for class to finish and pondering about personal finance🤔 I don’t think I need to keep a spreadsheet of my investments any more, however I still do. Find the monthly exercise of updating and reviewing the spreadsheet in relation to my goals/milestones brings my comfort in knowing the details.
Sarah Giver
@staystronggiver · 10h
I love your process Nicole, it's thoughtful and intentional. You are clearly following the markets taking advantage of some of the short term volatility while still making regular contributions and still adhering to all the psychological factors that contribute to long-term success. Thanks for sharing 👍🏽👏🏽😊
Dorpat
@dorpatdiaries · 11h
This is 100 percent me!! Every single one. I check multiple times a day and i DCA almost everyday. So eerie but glad I am not the only one
Retired
@retired · 16h
Great post, Nicolle! I’m glad to see you back around here. It sounds like you’ve got a busy but fun schedule with your daughter 🥰. I personally prioritize my tfsa above everything else because I want compounding (time) to have the longest runway for tax free growth and withdrawal. I know other people prefer other accounts or to pay off debt first but it’s always just made sense to me to start with tfsa. I hope you have a great weekend 🙏🏻
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