Overcome 3 Bad Investing Behaviors With Dividend Growth Investing

The article, Overcoming 3 Bad Investing Behaviors, outlined some common bad investing behaviors: stock market avoidance, insufficient diversification, and inefficient trading. I'm going to quote from this article and explore from a dividend growth investing standpoint on how to counter those behaviors. 1. Stock Market Avoidance Behavioral finance studies have found that investors are roughly twice as sensitive to losses as they are to gains. Using a dividend growth investing strategy, you're receiving a growing income from your dividends even in a market downturn. Focusing on the dividends you're earning per quarter helps mitigate the sensitivity of paper losses. People tend to evaluate gains and losses over a relatively short time horizon that may not be in sync with the longer horizon over which investment goals are expected to be achieved. This extreme fear of losses in the near term, combined with people's tendency to look at each investment... Read more

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