I’ve mentioned that I get fidgety whenever I invest, which is why I prefer formula based investment strategies such as Active Indexing, Magic Formula Stocks and NCAV stocks since it helps take out the emotions out of the decision process.
One reason behind being fidgety is the fear of permanent loss of capital. But I realize I’ve been neglecting another reason, which is opportunity cost.
The thought of being locked into an investment for years thus forcing me to miss out on even more lucrative investment opportunities absolutely drives me crazy.
Considering this, it’s best to also consider the necessary amount of time needed for a full cycle of an investment strategy and how much time is needed for you to accumulate the capital to execute an investment strategy that offers even better returns.
Not advice. No offer. Do not rely. May lose value. Risky. Conflicts hidden/obscured. (Borrowed from Terrence Yang‘s Disclaimer on Quora)