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How technology could be harming your investment decisions

Published: June 23, 2025 by Jennifer Armstrong

Technology has made it easier than ever to invest and review the performance of your portfolio. Yet, it could also be harming your decision-making skills and the way you approach managing your finances.

Understanding when and how technology has the potential to negatively affect your investments could mean you’re better able to spot and then prevent it.

Here are five reasons why technology might not be good for your investment strategy.

1. Technology gives you the opportunity to make snap decisions

When you invest, it’s often wise to do so with a long-term goal in mind. A longer investment time frame provides a chance for short-term market movements to smooth out and, hopefully, deliver returns.

So, having a long-term mindset when making investment decisions is often valuable.

Yet, with the ability to change your investments with just a few taps on your phone, it’s easy to make snap decisions based on emotions or your current circumstances. Instead of considering how your action could affect your finances in a decade, technology could allow you to invest in a way that reflects your situation now.

2. The 24/7 news cycle can provoke investor emotions

The world is more connected than ever. In many cases, this is positive, but it means there’s now a 24/7 news cycle that you can access almost anywhere.

Decades ago, you might read about short-term market movements in the morning newspaper. Now, you can track investment volatility minute-by-minute, and find numerous, sometimes conflicting, views on what it means.

This may lead to investors experiencing emotions that result in them acting in a way that doesn’t align with their investment strategy.

For instance, seeing the markets steadily decline throughout the day could make a nervous investor fearful, which results in them selling assets because they’re worried about the value of their investments falling further. Yet, by reacting to the news, they’ve turned paper losses into real ones and may miss out on a potential recovery.

The 24/7 news cycle doesn’t just provoke negative emotions in investors either. For example, you might watch a news segment about the “best” shares and excitedly purchase them.

3. Technology can amplify the urge to check investments frequently

For many individuals, a long-term approach to investing makes sense. So, when reviewing performance, you often want to assess returns over years rather than weeks or months.

While annual or quarterly reviews are useful for keeping your investment goals on track, many investors feel the urge to check their investments frequently. Having access to investment apps on your phone can amplify this and mean it’s simple to check how values have changed several times a day.

Much like the news, having access to this information isn’t automatically bad. However, it can lead to knee-jerk investment decisions that aren’t right for you because you respond based on short-term emotions.

4. Too much choice can feel overwhelming

Investors today can invest in a wide range of assets around the world. On one hand, greater choice means you have more opportunities to find investments that are right for your goals. On the other hand, too much choice can feel overwhelming.

Clearly outlining your goals and understanding the types of investments that are right for you can make the decision feel less daunting. This is a step a financial planner could help you with and then provide ongoing support, so you have someone to turn to if you have questions or can even take a step back from making decisions if you choose.

5. You could be more vulnerable to scams

Fraudsters have always tried to part victims with their money. However, they now have technology at their disposal that could make scams even harder to spot.

From cloning the phone number of a legitimate firm to using AI to create convincing sales materials, it isn’t always easy to spot the red flags. In addition, technology means you can be targeted while you’re on the go. You might be less likely to pay attention to the small details if you open an email on your phone or take a call while walking.

It isn’t always possible to recover losses if you’ve been targeted by a scam, so being vigilant is important. Remember, if you’re unsure if the person you’re communicating with is genuine or you have any doubt about an opportunity, take a step back to reassess.

Get in touch to talk about your investments

If you’d like our support when managing your investments, from understanding if investing is right for you to providing regular reviews, please get in touch. Our tailored financial plan could help you overcome some of the challenges technology might present.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.


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