Do SmartPhones Increase Reckless Spending? Dec 17th, 2019   [viewed 857 times]

Thanks to modern smartphones and tablets, people are connected to the world in ways that seemed unimaginable a couple of decades ago. Not only can we make phone calls and send text messages at any time from anywhere, but we can surf the Internet and set live wallpaper with a touch of a button or screen. Naturally, investors have taken full advantage of this technology and used different apps to keepQ track of their investments. At first glance, this sounds like a godsend. After all, being connected 24 hours a day to your stocks and other investments must make it easier to be successful. On the other hand, that may not be the case. As easy as smartphones and tablets have made it to be an investor, some have argued that they tend to encourage reckless investing and should never be used by serious investors.

Connected at All Times

The biggest reason experts claim that smartphone apps are bad for investors is the same reason that they allegedly provide an advantage: 24/7 connectivity. Simply put, it’s easy to assume that a particular investment should be sold off if its value goes up several times in an hour. Unfortunately, what many investors don’t understand is that these changes in value are very short term. A particular investment may look like it’s changing in value, but watching it over a longer period of time will show that its value remains stable.

Emotional Investing

Another reason why smartphone investing is such a bad idea according to some is that it can encourage “emotional investing.” One of the keys to being successful in business and investing is to not let emotions cloud your judgment. A good investor should keep a cool head and avoid letting emotions influence any decisions.

That’s easy enough for those who only receive periodic updates on their investments, but it becomes considerably more difficult for those who receive constant updates via their mobile devices. Being able to see the value of one’s stocks adds an emotional component to investing and trading. They are always on one’s mind, and that makes it easy think rashly.

Is Ignorance Bliss?

The warnings against smartphone investing really come down to the idea that ignorance is bliss. The stock market is often volatile, especially over shorter periods of time, and when one is constantly aware of that volatility it makes investing much more stressful. Sometimes, it’s best to not know that minor fluctuations within the market because they are minor fluctuations. The true value of an investment cannot be judged according to these small changes.

A Place for Investment Apps

Despite the warnings against investment apps, some consider them to be quite useful. After all, there is something to be said for a program that allows investors to see the price of their stocks at any time day or night. It does make investing easier, for better or worse. One of the keys to being a successful investor is not letting one’s emotions create any influence, and mobile investment apps make that all too easy. As long as you can keep a cool head and do not let the constant fluctuations of the market get to you, you should be able to use a good mobile investment app without too much trouble.