Boring really can be beautiful when talking about investments.
Just as some batters are always swinging for the fences, some “investors” are always looking for doubles, triples or quadruples. The problem with this as a strategy is that unless you are very skilled or very lucky you will strike out too often and – to extend the metaphor one more time -get sent to the bench, permanently. The proof that people still fall for this are the ads for penny stocks that show the handsome young stock picker embraced by a curvy cutey, private jet in the background. What could go wrong?
People in charge of serious money want to make a fair return with the least risk possible. Watching your portfolio gyrate like a yo-yo is no way to accumulate wealth for retirement or any other major investment goal. If you want to gamble and can’t get away to one of the casinos in Las Vegas or Atlantic City, create a separate “gaming” account with money you can afford to lose. Then, when you lose it, stop.
Remember, the secret to making money over the long term is not losing it in the first place.