Investing is a long-term game. For the novice or occasional investor to expect to make outsized gains in a short period of time, or overnight is wildly ambitious at best. Or, willful ignorance of financial market reality at best. The average or occasional investor may not see an appreciable return on their initial investment for years or decades.
The company you invest in answers to the same rules of financial market activities as you. Financial market volatility, declines in investor interest, and consumer disinterest in a company that you invest in could cause you to lose all of your investment.
Admit You Have A Lot to Learn
If you are investing, it should be because you are determined to take control of your financial interests, or to create supplemental funds for the future. Not because you are chasing the latest investment hype or following a popular company. Hype dies down. It takes engagement and the understanding of how financial markets work to make investments that are sensible and may potentially serve your own needs.
The truth is that most people can’t realistically handle investing on their own because they can barely handle their own finances. The average American family is almost $140,000 in debt. The average person only makes about $60,000 to $70,000 annually. On top of that, the average person has about $17,000 in credit card debt.
You need a driving instructor to learn how to drive. If you are new to driving and buying a car, you need to learn how to navigate throughout your city to get around. GPS alone may not cut it. Learning how to invest entails a lot of risks. If you are new to investing, it might serve you to hire an investment coach.
What to Look for In An Investment Coach
An investment coach is a person with a verifiable track record as a successful investor, employee, or owner of an investment company. An investment coach tutors, mentors, and advises your decisions concerning personal investments. If you don’t know how to begin investing or haven’t been successful profit-wise, they can help you to begin making better investing choices.
An investment coach should help you to better understand investment terms. The terminologies inherent in investing can be overwhelming to newcomers. An investment coach helps to understand how to buy stocks, ETFs, diversify your portfolio, and how to engage in investing. There are many ways to invest, and it takes time to learn how to do so effectively.
An effective investment coach helps you to make realistic investments that are appropriate to your goals. An investment coach will talk to you about your investment goals, wishes, and various multiple year plans for achieving such goals. They will teach you how to read and analyze financial market activity so that you can gauge the performance of your investments.
Before you hire an investment coach, ask about their credential. Inquire if they offer consultation visits. Verify their financial literacy in assessing how investment works, stocks perform, and gauging their performance. A good investment coach will ask you about your investment goals and guide you in investing in opportunities that benefit you. Be wary of any investment coach who is more interested in getting you to invest in stocks that may benefit their interests.