There is something almost instinctive about checking an investment after putting money into it. We want to know whether it is working, whether the return is moving in the right direction and whether we made the right decision. Technology has made this even easier. A few taps can show us balances, performance and activity almost instantly.
But more information does not always lead to better investment decisions. When investors check returns too frequently, they can start reacting to movements that were never meaningful to begin with. An investment designed to play out over months or years can suddenly feel as though it needs to prove itself every week. A temporary change can feel like a problem, while a period of stronger performance can create a false sense of certainty.
There is also a psychological element. Once we see a number, we tend to attach meaning to it. We compare it with what we expected, what someone else earned or what another investment is doing. The investment becomes something we are constantly evaluating rather than something we have given time to work.
This does not mean investors should ignore their investments. Understanding where your money is invested, how it is performing and whether the underlying circumstances have changed is important. The difference is between staying informed and constantly seeking reassurance.
The right frequency for checking an investment should have more to do with the nature and timeframe of the investment than with our own curiosity. A long-term investment does not become better because we look at it every morning.
Perhaps one of the less discussed disciplines of investing is knowing when not to check. Because sometimes the most useful thing an investor can do after making an informed decision is give the investment the time it was designed to have.