Uncover the Source of Your Negative Alpha

financial-review-picture-istock pic for SA article


  • Identifying the source of “negative alpha” in your investing is just as important as crafting a sound investment strategy and approach.
  • My story of ill-advised market timing illustrates an example of generating negative alpha.
  • It can be difficult to break bad investing habits, even if you have advanced investing knowledge and skill.
  • I recommend performing a thorough analysis of your historical investment decision making and implementing effective behavioral mechanisms to help prevent recurring mistakes.

What is your source of “negative alpha?” In other words, what recurring actions do you take that reduce the return you should have generated?

If you’d like to learn about five common investor mistakes and how to avoid them, you can view the entire article published exclusively for SeekingAlpha.