I would say that it is definitely good to check the market more frequently to be on top of it. I have one of my friends who is so into share trading and he keeps checking the market and reading about various companies and strategies associated with trading etc more frequently. I used to wonder how can someone be so involved, the reason could be because it is something that involves money.
The first resistance that I get in my mind is that money can make us go mad, so we should be very careful in dealing with money. The second thing is that we can look forward to doing investments and watch our money grow but it shouldn't be a gambling thing. This is what I personally feel about money. I don't know from where I caught these thoughts but this is how my mind accepts things. I'm not going to say that I'm someone who is not fond of money at all. Even today if someone is ready to take care of my lifetime expenses, I would stop working and start doing things that I dream about.
I guess I'm deviating so much from the topic. Let's get back to the topic. There are both advantages as well as disadvantages in observing the market regularly. I would like to list out one by one and explain what I feel about it.
Gives good earning opportunity
When we keep observing the market so frequently, it is quite natural that we will understand when will be the right time to enter the market and when it will be the right time to get out of the market. This is something that we can gain only from the experience. In order to gain that experience, we have to keep observing the market quite often. Successful people in the share market usually say that we have to stay in the pond like a crane looking for the right opportunity to catch fish. If we lose the opportunity we might end up in a loss.
There is also another perspective where we have to go with the trend. By looking at the market frequently, we will be able to understand the whole trend. One common thing that every trader will know is the fact that the share market will have a dip when the price of gold increases. The same happens in reverse as well. When the price of gold decreases, it becomes a good opportunity for the market, and stocks will see a surge in the price.
Control the temptations
Usually, when we have more focus on something, we tend to show more involvement. The same happens with the Share market as well. When we observe the market so much, there is a high possibility that we end up purchasing something. Because of the curiosity and temptation, we may not even know if we bought the stocks at the right time or not. I have had this problem. To be honest, I still have that problem. When I keep observing the market or a particular stock, I have this bad habit of purchasing it instantly when I feel it is good. But the stats may not be right at the time of my purchase and I will end up in a huge loss.
When we are observing the market, we will need more patience and we have to just be an observer and not get tempted to purchase quite often. Look for the right opportunity and then jump to reap the profit.
Frequent market checks increase knowledge
One of the biggest advantages a person can have by observing the stocks regularly is knowledge. This is something I have personally experienced. For instance, I have observed a few stocks from my watch list. Even today if you ask me to give one page write up about those stocks, I will be able to give. I can also tell when is it a good time to purchase those stocks and when it is the right time to exit from those stocks. So, on a very positive note, observing the market regularly can increase our knowledge and experience though we cannot predict everything perfectly.