{"id":8749,"date":"2014-10-06T11:51:11","date_gmt":"2014-10-06T18:51:11","guid":{"rendered":"http:\/\/www.marketriders.com\/investing\/?p=8749"},"modified":"2016-12-21T07:27:52","modified_gmt":"2016-12-21T15:27:52","slug":"hidden-virtues-ignoring-market","status":"publish","type":"post","link":"https:\/\/www.marketriders.com\/investing\/hidden-virtues-ignoring-market\/","title":{"rendered":"The Hidden Virtues Of Ignoring The Market"},"content":{"rendered":"<p>Practice makes perfect, as the saying goes. We are brought up to believe that succeeding at anything means paying a lot of attention.<\/p>\n<p>And that makes a lot of sense in most endeavors. After all, natural ability and talent will only take you so far. Even the best-of-the-best know that they got that way by working at it.<\/p>\n<p>Where the logic of doing more falls apart, however, is in the investment business. The problem is pretty simple: Most of us are just not going to spend <a title=\"Day Trading the News? Not On Your Life\" href=\"https:\/\/www.marketriders.com\/investing\/day-trading-the-news-not-on-your-life\/?utm_source=marketriders&amp;utm_term=2013-10-09-hidden-virtues-ignoring-market\/\">70 hours a week trading our accounts<\/a>.<\/p>\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Hammock#mediaviewer\/File:Hammock_040522.jpg\"><img loading=\"lazy\" class=\"alignnone  wp-image-8758\" src=\"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2014\/10\/Hammock_040522.jpg\" alt=\"ignoring the market\" width=\"453\" height=\"302\" srcset=\"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2014\/10\/Hammock_040522.jpg 640w, https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2014\/10\/Hammock_040522-300x200.jpg 300w\" sizes=\"(max-width: 453px) 100vw, 453px\" \/><\/a><\/p>\n<p>Think about it. If you pay attention to your retirement investments at all, how much time do you spend on it, added up? A Saturday morning once a month? Ten minutes a day logged into an online brokerage account?<\/p>\n<p>Now imagine the lives of the real traders out there, the folks who make a living doing this. They are up at the crack of dawn and shuffling down to a subway train, then off to some bank or Wall Street itself.<\/p>\n<p>From market open to market close they are glued to a screen, maybe five or six at once. They have trades valued in the millions riding in all directions at once. Some last\u00a0for a day or two. Some run for a week or a month. Some last mere seconds, <a title=\"Hedge Funds? You\u2019re Better Off Playing Powerball\" href=\"https:\/\/www.marketriders.com\/investing\/hedge-funds-youre-better-off-playing-powerball\/?utm_source=marketriders&amp;utm_term=2013-10-09-hidden-virtues-ignoring-market\/\">a blip on a hedge fund spreadsheet<\/a>.<\/p>\n<p>All of this is happening in real time, with real stress on the actual trader pushing the buttons. Despite all that attention and time, traders have a really, really hard time keeping up.<\/p>\n<p>Why is that? Because they are the market. All of those buys and sells, added together, create what at the end of the trading day we call &#8220;the market&#8221; and its resulting performance.<\/p>\n<p>Some number of them got it right, at least for today. Some number of them got it wrong. The difference creates the price of each company traded.<\/p>\n<h2>The case for ignoring the market<\/h2>\n<p>You get the best results over time by ignoring all this activity. Face it, you aren&#8217;t getting up at dawn to prepare for a long, difficult day of trying to <a title=\"The Case For Ignoring Your Retirement Plan\" href=\"https:\/\/www.marketriders.com\/investing\/case-ignoring-retirement-plan\/?utm_source=marketriders&amp;utm_term=2013-10-09-hidden-virtues-ignoring-market\/\">outguess thousands of like-minded traders<\/a>. You have a job and a family and other things to do.<\/p>\n<p>Yet you can get that same market value each and every day through an index fund. Over time, research shows, just owning a selection of asset classes determines most of your return, not trading or trying to get an edge.<\/p>\n<p>In fact, the more you ignore the market, the easier it gets. No longer tempted to &#8220;take action,&#8221; you instead simply review your holdings\u00a0once a month or less. If your portfolio is out of balance, you rebalance and move on.<\/p>\n<p>No muss, no fuss, and definitely no stress. Not coincidentally, you also get the best possible return at the lowest possible cost, both to your wallet and your mental health. It&#8217;s a win-win that <a title=\"Compound Interest: Grow Your Retirement Lily Pads\" href=\"https:\/\/www.marketriders.com\/investing\/compound-interest-grow-retirement-lily-pads\/?utm_source=marketriders&amp;utm_term=2013-10-09-hidden-virtues-ignoring-market\/\">pays off big in retirement<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Practice makes perfect, as the saying goes. We are brought up to believe that succeeding at anything means paying a lot of attention. And that makes a lot of sense &hellip; <a href=\"https:\/\/www.marketriders.com\/investing\/hidden-virtues-ignoring-market\/\">Read more <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":8758,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_rev_ctl_limit":""},"categories":[3],"tags":[55],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Hidden Virtues Of Ignoring The Market | MarketRiders<\/title>\n<meta name=\"description\" content=\"No muss, no fuss, and definitely no stress. 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