Tuesday, October 20, 2020

Investment Journey: key steps to be successful

 

Becoming a successful investor doesn’t happen overnight. It takes time and effort to learn the ins and outs of the investment world. Your personality as an investor also plays a major role as you have to be patient because any good investment takes time.

Below are some key steps to note in your investment journey, the steps would tell you what exactly you should look out for along the way.

Every good Investor Understand that this is a journey

As any good investor will tell you, to be successful in investing you have to understand that it is a journey and not a one-time event. You need to be in the right mind frame to prepare yourself for the long term and know exactly where you are headed i.e. your destination. This will help you plan your investment journey accordingly. For instance, when are you looking at retiring? 20 or 30 years from now? When you are 60? How much money do you need to have to make? You need to ask yourself these questions and know the answers. This will help come up with a well-detailed plan for your investment goals.

  As an Investor, Know the market and what works

Investing is a combination of different things; knowledge of the market, financial fundamentals and qualitative factors. The great thing is that we live in the tech age and you have unlimited access to investment guides and resources on the internet that explain high-level finance ideas in a way that is easy to understand. So it is very important that you read books, take an investment course or two and understand the modern financial market and topics such as portfolio optimization, diversification, and market efficiency. Once you know what works in the market, you can come up with simple rules that work for you and guide your investment efforts.

Every Good Investor will be willing to learn

Predicting the market is an impossible task, it can be hard because of a single certainty, it mostly proves to be volatile. But this shouldn’t deter you from it. The investment journey is often more than not, a long one and learning to become a successful investor is a gradual process. Sometimes your predictions about the market will be wrong but instead of dwelling on it, acknowledge it and learn from your mistakes. A successful investor is one that always keeps an open mind to learning.

Investment is not a “get rich quick” scheme, learn to be patient.

When most people hear ‘long term’ they get discouraged. Any good investor understands that investing isn’t a ‘get rich quick’ scheme and would tell you Rome wasn’t built in a day. Understand that your chances of success will increase if you are in it for the long haul and you stick with an optimal long-term strategy. It may not be the most exciting investment choice but remember you have a goal and it is important to stay on course without letting your emotions get in the way.

Get on the right investment path

Your personality, access to resources and level of knowledge should determine your choice. It is important that as an investor, you do not put all your eggs in one basket. The key way of investing is to diversify your portfolio and make tactical decisions. The most successful investors usually start with low-risk diversified portfolios and gradually grow by learning from their doing and actions. As investors gain greater knowledge over time, they become better suited to taking a more active stance in their portfolios.

The aforementioned subject is brought to you, courtesy of National Mail.

National Mail is an online news platform of Trade Nigeria that focuses on business development, Investment, trade, economic exchange and development. 

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