3 Strategies That Will Make You A Better Investor

The most important thing to understand as an investor (or day trader) is that you’ll never perfect the craft. This is true in part because investing can’t be perfected, even by advanced algorithms. But it’s also true because there’s no such thing as a strategy that covers all the bases, or a flawless trading method. You’ll always be making new decisions based on new circumstances, even if you’re following your own general guidelines most of the time.

What this all means is that you should never stop educating yourself if you want to generate income, or solidify and grow your savings, through investments. And with that in mind, here are three tips for ways to stay on top of your strategies and keep learning.

Delve Into A Trading App

Perhaps inevitably, there are now dozens of great mobile apps that have been designed specifically to help traders. Some, like Stash and Robinhood, actually allow you to invest money in any amount you choose, with helpful analysis tools and no fees on transactions. Others, like Acorns, seek to automate your investment process and put away small chunks of money in pre-designed portfolios. And some simply provide strategies, or even games that simulate stock market scenarios. All of these apps can be helpful for giving you new perspectives on investing and for helping you to gain valuable insight and practice. Here’s a look at 17 apps in particular that may be of service, just to give you a starting point, but the best idea is to simply spend some time browsing your mobile store. You’re certain to find a few tools that are of particular interest to you.

Start A Trading Journal

One of the most careless mistakes a regular investor or day trader can make is to neglect past transactions or activities. In some respects, it helps to have a “short memory” while investing. That’s in the sense that you don’t want to become timid because you’re focused on past failures, or reckless because you can’t let go of past successes. But in terms of specific strategies, memories and even detailed records can be essential. Keeping your own trading journal is a great way to establish a quantifiable track record that can enable you to identify your own habits, recognise your strengths, and work on your weaknesses. All you need to do is record the circumstances before and after each trade you make, and you may be surprised how much useful data you begin to gather.

Listen To The Experts

It’s understandable to doubt financial experts or famous billionaire investors who want to give public advice. For instance, Mark Cuban is one of the most well-known billionaire investors in the world, and yet if you look into his biography you’ll see that he made his fortune through two start-ups back in the ’90s. So why should you listen to him about current investment strategies? Why should you listen to Warren Buffet when he’s been famously wrong about trades, despite becoming one of the wealthiest men in the world? The answer is because this is their world. No matter how they initially made their money, men like these tend to stay relevant because they’ve continued to make sound financial decisions to maintain and grow their wealth. In short, if you’re seeing advice from a famous financial analyst or billionaire, it’s probably because that person has earned the platform to speak out through strong performance. That
doesn’t mean you should blindly follow all instructions, but you should always listen and then decide if an expert’s advice might be helpful to you.

The education process never stops, and these tips certainly don’t paint a comprehensive picture of how to excel as an investor. But adopting strategies and practices like these is a great way to build a foundation as an investor who will continue to learn and adapt over time—and that, ultimately, is the best path to success.

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