Thanks to technology, stock market updates are available as they happen. If one of your stocks crosses a set value threshold, your phone may be able to alert you via text message. If the stock market takes a dip or surges upwards, you may be prompted to check the effects of that shift on your portfolio.

But being constantly connected to the short-term happenings of your investments has the potential to backfire. If your knee-jerk reaction to every change is to buy or sell stocks, you could easily trip yourself up.

Give it time

Selling a stock for a quick profit, for example, may cause you to miss out on potential long-term gains of that stock down the road. And habitually buying and selling may increase your transaction fees. Finally, shorter-term buying and selling may increase taxes you owe on capital gains, which in turn impacts the overall value of your nest egg.

If you’re looking for a well-balanced model for potential success, consider purchasing investments you see as having potential to build your wealth over the long term. Then, be patient and give your investments time to reach their potential. You can consider monitoring your investment performance and following industry news, but try not to let day-to-day fluctuations of an investment push you into a quick buy or sale. If a company and industry is performing well, then the price may follow, and you want to be well positioned for the potential rewards.

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