What you need to go from a beginner to an expert investor

Investing any spare money you have is becoming increasingly popular with many people. The great news is that this will get you better annual return if done well than your spare cash sitting in a bank account. There are also a great range of assets you could invest in – this includes stocks, foreign currency, direct business investment and even exotic things like classic cars or fine wine. Many new investors though will begin with the global stock exchanges or putting money into businesses directly as they are easy to understand. 

This is not to say investing is straightforward or something that will not feel daunting at first. All beginner investors feel like this and you will soon grow more confident as you progress on your journey. One issue some investors can have is making that leap from beginner to expert. If you find yourself in this situation, the below tips should help out. 

Get advice from the experts

Very often, the best thing any new investor can do is turn to more experienced investors for advice. Bill Malloy is an expert investor with many years of experience in the venture capital sector with Sway Ventures. People like him are perfect to look to as you can learn from where they invest and how they go about finding opportunities to make money. 

Unless you personally know an experienced investor like this to ask questions of, the best route is to hit the internet. Many experts will have personal blogs or accounts on sites like Medium where they share their wisdom with the public. By taking in some of their advice, you can use it to grow as an investor yourself. Online forums can also be a good area to gain advice from and often have more experienced members who can give valuable tips to grow.

Keep up with the news

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The financial markets move on the latest economic news which means your investments will as well. This makes checking the news each day one of the best expert investment tips. While you do not want to obsess over this as it can lead to information overload, you should definitely find out what is happening every morning before you make any moves. This is something that will help you to go from a newbie to an expert over time. Not only does taking in the latest news help you manage your portfolio better or spot potential investment opportunities to check out, it will also help you start to get better at predicting how the markets may react to certain stories.

Keep going

This may sound overly simplistic but simply keeping going is a great route to take. When you think about it, this makes perfect sense. You wouldn’t go out to play soccer one day and then expect to be winning the World Cup as your team’s star player the next. The same basic truth is present when it comes to investing. You cannot expect to go from a novice to an expert overnight. What will make you a pro investor is mainly experience – both good and bad. If you can stay in the game and learn from your mistakes while picking up vital investment experience, you will complete the transition to expert status eventually. 

Don’t gamble and don’t get emotional

Although investing in any asset involves risk, this does not mean it should be a straight gamble. Understanding this is key if you are to go from a beginner to an expert. You should only invest in a company or buy stocks if you believe it has a pretty good chance of working out – a calculated risk if you will. All pro investors will also control their emotions which is vital for long term success. Don’t get too down after an investment which goes south and don’t get too hyped up when one works out. Simply stay calm and move onto looking for the next in a rational way.

Make sure to diversify your portfolio 

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This is a neat trick which expert investors use and you can too in order to progress. Many newer investors make the mistake of investing all their money in one company or buying shares in companies which all operate in one sector. The issue here is that if that one company or sector tanks, you have lost all your money! Professional investors will instead spread their investments over various companies and sectors which in turn spreads their risk. If one dips, then the others pick up the slack so to speak. 

The journey starts now 

In essence, the journey from being a new investor to an expert is one we can all take. The only difference between the two is hard work, understanding how the market operates and experience. Of course, a few great tips like those above help as well! Just remember that the best investors always keep learning and never stop growing. Whether it is learning more from books, online articles or other investors, this is also a key point to remember. 

 

 

 

Disclaimer: This content does not necessarily represent the views of IWB.

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