Your Smartphone Could Be Bad for Your Money

Jacqui Kenyon
Posted

investing appsOne thing’s for sure: There are no shortages of apps on the market.

There’s one to keep you on your workout grind, one to help you split the check at lunch with friends, another to keep track of your ever-growing to-do list … even one to help you pick the right wine for your dinner party.

So why wouldn’t you have an app to track your investments as well?

Financial services companies—like Fidelity and E*TRADE—offer apps that let you do everything from observing your portfolio in real time to making trades on the go.

But experts say that opting for this type of mobile money management isn’t always a smart move for investors.

RELATED: Emotional Investing Can Cost You

Chuck Jaffe of MarketWatch believes that investors would be better off if they didn’t have the ability to buy and sell from anywhere, writing in a recent column that “constant access to one’s finances tends to turn running money into an obsession more than a necessary activity.”

RELATED: Ask Warren Buffett: What 5 Things Make a Good Investor Great?

Having the tools in your pocket or purse to drastically change your portfolio at any time can make you even more vulnerable to snap decisions and emotional investing. With an investing app showing you the market going up and down, you’ll be constantly aware of how your portfolio is doing and you might be more likely to make a decision about your accounts based on rash predictions.

This, in turn, can have a negative impact on your bottom line, since studies show that those who try to time the market end up losing big.