A temperature check

Summary: Constantly checking your portfolio can lead to emotional decisions and poor returns. A disciplined asset allocation with predefined rebalancing rules acts like a thermostat, helping you buy low, sell high and stay calm through market volatility. It was 3 AM when Rahul checked his portfolio for the seventh time that day. The Indian markets had closed hours ago, but the US markets were open, and his tech-heavy portfolio was down another 2 per cent. He had already moved 15 per cent to cash that afternoon. Should he move more? By morning, he had changed his mind multiple times. A few weeks later, those same holdings had recovered. But Rahul’s portfolio lagged; he had locked in losses and missed the rebound. His problem wasn’t that he was measuring his portfolio’s temperature. It was that he had no thermostat.  The thermometer trap How many times last week did you check your portfolio? If you are like most investors, probably more often than you would admit. We have become obsessed with taking our portfolio’s temperature, tracking daily swings, refreshing apps, watching every tick. But here’s the paradox: the more you measure, the worse you tend to perform. Constant monitoring creates an illusion of control. Each check feels responsible. In reality, it exposes us to noise. Daily swings are mostly meaningless, yet our brains treat every dip as danger and ev