TIPS ON INVESTING LIKE A PRO

TIPS ON INVESTING LIKE A PRO

If you believe you possess the desire, time, knowledge and temperament to manage your own portfolio then these four tips will help you lay a solid foundation for investing successfully.

These “tips” are not shortcuts, get rich quick schemes or can’t miss investment opportunities.  To execute them successfully, each step will require an investment of your time, building your investment knowledge while testing your true desire to invest.

    1. Start with a Plan
      Baseball philosopher Yogi Berra once said: “If you don’t know where you are going, you might wind up someplace else.” Having a clear idea of where you are and where you want to go financially is an important first step. Your plan should address how you expect to achieve your goals as well as contingency plans, such as carrying adequate insurance, for unforeseeable events that can derail the best laid plans. There are resourceful websites that contain useful resources including articles, videos and planning tools to help you create your own plan. If you find the process too daunting, look to a quality financial planning professional for help.
    2. Focus on Philosophy.
      Before thinking about how to allocate your assets or researching individual investments, take time to develop and articulate your personal investment philosophy. These core beliefs about investing will guide your approach and help keep you on course over time. Investors lacking a philosophy are more easily drawn to overhyped investment opportunities only to be burned when they subsequently abandon these investments near market lows.Buy high, sell low is obviously not a viable philosophy but one far too many investors unwittingly follow. My best advice for developing an investment philosophy is to read and listen to the philosophies of successful investors. As you do this, take notes and remember this observation from legendary hedge fund manager George Soros: “When the chips are down, philosophy is the most important part of my life.”
    3. Develop a Disciplined Investment Process
      Your investment process emanates from your investment philosophy. It will address how you will build and maintain your investment portfolio. From the allocation of your assets to its implementation and monitoring, your investment process will define how you go about investing with the discipline of a professional.
This content shows up if there are no widgets defined in the backend.