It’s natural to want the best returns on your money, but not so natural to know how to do it. Here are six ways that you can learn how to improve the performance of your portfolio.
Treat It Like A Business
It’s surprising how much research people are prepared to do before buying a car, which is a depreciating asset,
Stick to a Winning Strategy
When you learn about trading, you learn the importance of having a trading plan with a strategy that has a positive expectancy. You then go on to refine your personal strategy to suit your plan with a strategy that has a positive expectancy. You then go on to refine your personal strategy to suit your trading style.
All this effort is wasted if you don’t stick to the strategy when you are actually trading. The psychology of trading is difficult, and you have to learn the mental discipline to continue to apply your trading rules regardless of outcome so that you can get past the inevitable losing streak.
Track Your Performance
Learning to make good investments is a process, and so is improving your skills. Once you start making live trades, you should be keeping a trading journal all the time, detailing the stocks and shares you trade. This lets you refer back to both winning and losing positions and gives you the ability to improve as you go along.
This doesn’t mean that you will be changing your strategy all the time, but it gives you the information necessary to know when and how to do that. Without a trading journal, you are either just guessing or relying on remembering events that happened when you were probably stressed out.
Know Your Limitations
You don’t put a driver’s ed student in a Ferrari and expect a good result. When you learn something, you have to progress and not jump in foolishly. In the same way, if you are still a novice at investing, you should stick to simple financial securities, investing in stocks, and not look to trade powerfully leveraged products such as futures trading.
If you blow your account by trying to go ahead too quickly, then your investing is over.
Find A Mentor
One of the quickest ways to get up to speed in any business is to find a mentor who can show you how to invest in stocks, and with whom you feel a connection. There are many different styles of trading, but there are also many people prepared to share their experiences and offer advice. Most will offer a preliminary counseling session to see if they are the right fit for you.
With an experienced team and diverse talents and abilities, we are happy to receive your questions, and to help when possible. If you are wondering about something, then quite possibly it is puzzling others too. We put the most frequent questions into our growing FAQ list.