Investing passively will ensure that, after costs, you outperform the average active investor. That’s simple arithmetic. But there is a proviso. You must have the discipline to stay the course.
See part VIII here
Investing Passively: How to Win the Loser’s Game
So, how do we as investors curb that sort of self-destructive behavior? Well, one way is to have an automated approach to investing. So, once you’ve chosen a strategy and the level of risk you’re prepared to take, you leave your investments exactly as they are. Either once or no more than twice a year you should rebalance your portfolio to realign it with your risk tolerance. But again, this can be done automatically.
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