We live in the golden age of DIY. Whether it's fixing cars, doing taxes or getting a college education, technology is available to help us every step of the way without outside assistance. The same goes for investing. Gone are the days of hiring a stock market analyst. Today, we have AI mutual funds and a wealth of online tools that make investing/trading a more efficient and easy process. However, you can't rely on technology alone. If you want to be your own market analyst, here are a few essential tips to succeed.
Ok, so you've fired your stock market analyst and have decided to do it yourself. Congratulations! But do you really know what kind of project you're undertaking? If you really want to be a DIY stock market analyst, the first concept you must grasp is that of time.
Simply put, investing is time-consuming. You must make time to follow up on each investment in your portfolio. You need to read the news, rebalance your account and adjust your portfolio in preparation for major life events. On top of time, you must practice discipline. Don't make rash, uneducated decisions. Research a plan that works for you, and stick with it. For example, don't just invest in a company like BestRate because your "crypto friend" said so. Take the time and discipline to research the company on your own. Don't let other people spend your money for you.
DIY STOCK MARKET ANALYST: CONFIDENCE AND DISASTER MANAGEMENT
Being a DIY stock market analyst isn't just about crunching numbers and reading candlestick charts. A large part of investing/trading success is about your personality. It takes a unique kind of person to find success and one must have the right level of confidence. For example, you must be confident in your abilities to be active and not procrastinate. You must follow through on your plans (i.e. buy a certain stock when it comes down in price).
On top of all that, you must be confident in your ability to handle negative situations. Mistakes happen and they are unavoidable. However, it's how you handle your mistakes that sets you apart from the average investor/trader. Make sure you diversify your portfolio enough so it doesn't collapse in the result of a big mistake. Risk management is the key takeaway from this.
If you don't like research, then maybe being a DIY stock market analyst is not your thing. Staying up to date with all the latest events and news is absolutely essential to finding success as an investor/trader. Every day, you must digest incredible amounts of news, follow up on economic statistics, foreign events, politics and more. Sure, it sounds like a lot of work but once you get into a rhythm of it all, research like this becomes a natural habit. Think of it as going to the gym every day. At first, it will be a chore but eventually, going to the gym every day becomes as natural as eating breakfast and you can't imagine life without it.
Investing is not easy and you won't find success overnight. However, if you want to take charge of your portfolio and truly make the most of it, then becoming a DIY stock market analyst is a great way to accomplish that.