Multiple Choice, Single Answer

Read the passage and answer the question.

Many investors believe that checking their portfolios constantly leads to better decisions, but evidence often suggests the opposite. When people watch prices move every day, they tend to react emotionally to short-term dips, selling in panic or chasing sudden gains. These frequent reactions can lock in losses and increase trading costs. Studies of long-term investors have found that those who review their holdings rarely, perhaps only a few times a year, often outperform those who monitor them obsessively. The reason is partly psychological: distance from daily noise makes it easier to stick to a steady plan rather than being swayed by temporary swings in the market.