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When investing, become a tortoise

The key to investing isn't in the zip, it's in a persistent ability to keep your goal in mind and stay in the market. Becoming an investing tortoise is the best way to see your investments grow. 

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    The San Diego Zoo's oldest resident, Galapagos tortoise Grandma who is estimated to be about 130 to 140 years old, celebrates Halloween with a pumpkin breakfast in San Diego, California in this October 28, 2015. When investing, channel a tortoise.
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When market volatility rises, people start questioning their portfolio allocations. Should I go to cash? Should I invest more? Can I really stomach the amount of risk I thought I could?

But none of these is the question you should really be asking. That question is: How much time do I have to attain my goals? People worry about timing the markets when their true focus should be on time in the markets.

I can’t help but think of Aesop’s fable “The Tortoise and the Hare.” The energetic, fleet-footed hare makes fun of the plodding tortoise. Challenged to a race, the hare assumes he will win by a mile. But he’s overconfident and easily distracted, even stopping for a nap. Ultimately, slow and steady wins the race.

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Trying to time the market is acting like the hare, jumping in and out of the race. It’s a risky strategy aimed at outsmarting the market. But as we all know, the markets do not act in a linear, logical manner. One mistimed transaction can cost you not only your initial investment, but also the potential upside. You run the risk of sitting on the sidelines, napping, during the best-performing markets.

With the increasingly free flow of information, much of it available instantly online, the notion of getting ahead of the herd on a trade is almost extinct. Are quick trades really going to get you to the finish line?

The tortoise, meanwhile, has his eye only on the win, not on the twists and turns of the course, nor even on his competitor. Your time in the markets should be dictated by your personal goals, not by what’s happening elsewhere in the market or by your neighbor’s portfolio. If you are looking to retire in 20 years, all these fluctuations are just noise. Stay focused on your buy-and-hold strategy. This strategy — plus time— has resulted in higher gains over the long run.

Buy and hold does not mean buy and forget, though. As your goals get closer, you’ll want to rebalance your portfolio. But how you do it should be based on your needs, not the market.

The more haste, the worse the speed. This is not a race to the finish. Don’t be bullied by sensational headlines or the fear of being left behind as the market rallies. At the end of the day, perseverance and focusing on your goals will take you to the finish line in stride.

This article first appeared at NerdWallet.

The Christian Science Monitor has assembled a diverse group of the best personal finance bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link in the blog description box above.

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