“The big money is not in the buying or the selling, but in the sitting.” Jesse Livermore, legendary Wall Street trader.Last year marked one of the most volatile periods in the history of the stock market.Although the S&P 500 moved up and down in increments of more than 20 percent during the year, it actually ended the year virtually unchanged.Had investors allowed these swings to affect them, they may have bought and sold at various periods driven by panic and euphoria associated with “price” changes instead of “fundamental” changes.Dismal returns over the last decade have severely tried investor's patience and many feel the need to act they need to do something!Is activity in itself productive?The simple answer is of course, no.In these times of financial stress and uncertainty, I'd like to explain why the concept of “action bias” may actually be many investors' worst nemesis.In a study conducted by Thames River Multiple Capital for three years through March of 2011, the 20 UK equity funds with the highest turnover returned just 4.7 percent while the 20 funds with the lowest turnover returned 16.8 percent over the same period.This study seems to indicate that all of the extra effort put into trading is not really adding any value.It probably makes the brokers happy, and satisfies the clients who like to see “action” but it really have done nothing to increase wealth.Investor's often are drawn to what is “moving” and feel uncomfortable sitting on stocks that are not going anywhere.They lose patience often at the worst possible time.Sometimes it takes a long period of time for the market to suddenly recognise value in certain investments but once it does the gains can be swift.This brings me to goalkeeping.One of the most intense and stressful events in football is the penalty kick.If you are the goalie what do you do? Dive right? Dive left?Ofer Azar, a behavioural economist, tried to answer that question with his 2007 article in the Journal of Economic Psychology.In his worldwide study on top-level goalkeepers and their reaction to penalty kicks, he found they jumped an overwhelming 94 percent of the time either right or left.Had they not moved they would have actually been much more successful as the study found that 29 percent of penalty shots are actually directed to the centre of the goal.Despite the clear statistical advantage of staying in the centre only six percent did so.The take-away from this is simple.Don't view investing as a form of recreational excitement.If you need action watch a Bruce Willis film.We all have a tendency to “dive” and fail because it feels better to do something, but unfortunately doing something may actually not be the best decision.For example, the risks often outweigh the benefits of short-term attempts to “time” the market.If action bias continues to compel you to do “something” it's likely more constructive to hedge certain investments as this will remove the uncertainty of deciding when to re-enter the market. Focus on the business you are buying and not the price.This strategy doesn't advocate blind buying and holding but being disciplined to avoid unproductive churning.We unfortunately have to expend a great deal of effort to alter our natural impulse to deal with threats through irrational action.Don't take investment action for non-investment reasons.Maintain a consistent and defined strategy.Stand still and win the game.Disclaimer: This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.The opinions expressed may change as subsequent conditions vary.The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Anchor Investment Management Ltd to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results.There is no guarantee that any forecasts made will come to pass.Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks.Readers should consult their financial advisors prior to any investment decision.Index performance is shown for illustrative purposes only. You cannot invest directly in an index.