The most successful investors didn’t achieve their goals overnight. It takes patience and time to learn the ins and outs of the financial world and understand your personality as an investor. Plus, there has to be some trial and error along the way. There are some steps that can be instrumental in ensuring your success and Ido Fishman has outlined them below for your convenience and ease. Let’s check them out:
Step 1: Getting Started
You have to remember that successful investing is not a one-time event. As per Ido Fishman, you have to prepare for a long trip. This means deciding your destination i.e. what you want to achieve and then plan your journey accordingly. This will help you figure out how much to invest, for how long and a plan for doing so.
Step 2: Understand what works in the market
You can take an investment course or go through books that can help you understand modern financial ideas. As per Ido Fishman, you have to understand diversification, portfolio optimization and market efficiency before you can go anywhere. Once you understand what works in the market, it will help you in coming up with simple rules that can come in handy.
Step 3: Have an investment strategy
No one can understand you and your situation better than you. Therefore, Ido Fishman says that you are the most qualified person for doing your own investing and you just need a bit of help. You have to identify the personality traits that will prevent you or assist you in investing and managing successfully. For instance, you have to know whether you are risk averse, entrepreneurial, trend-follower or a wealth preserver. This can help you in coming up with an investment strategy that can work for you in the long run.
Step 4: Know your friends and enemies
You have to beware of false friends like unscrupulous investment professionals who only pretend to be on your side and may have a conflict of interest. Also, Ido Fishman reminds you that becoming an investor means competing with large financial institutions that have better resources and quicker access to information. You shouldn’t forget that you are potentially your own enemy. Depending on your strategy, personality and circumstances, you could end up sabotaging your own success. For instance, if you are a volatile investor, you may panic and not think things through before making decisions. You have to remember that when it comes to investment, emotions are your enemy and you need to learn how to defeat them.
Step 5: Find the right investment path
Your personality, level of knowledge and resources will determine the path you choose. As per Ido Fishman, you shouldn’t put all your eggs in one basket, which means you should diversify. If you do decide to invest in one basket, you have to watch it carefully. If you want to be successful, it is recommended that you start with a low-risk diversified portfolio and then gradually learn as you go. Once you gain knowledge, you will be in a better position to take a more active stance when it comes to your portfolio.
Step 6: Do it for the long-term
The most important investing choice in the eyes of Ido Fishman is to stick with your optimal strategy for the long-term. However, your chances of success will go up if you stay the course without letting your emotions get the upper hand.
Step 7: Be ready to learn
Predicting the market is no easy task, but Ido Fishman says that one thing is almost always certain; it will be volatile. If you want to be a successful investor, you should remember that it is a gradual process and the journey can be a long one. The market may prove you wrong at times, so you should be ready to learn from your mistakes and apply those lessons to benefit in the long run.