To become a better investor, one should read books on investing to gain straightforward knowledge, evaluate spending habits to learn how and when to buy stocks, and avoid watching the news daily which can lead to emotional decisions instead of rational ones based on facts. It is also important to only take risks that allow you to sleep at night and be comfortable with potential losses. Managing emotions and making decisions based on facts rather than feelings can help lead to financial success.
1. H O W T O
B E C O M E A
B E T T E R
I N V E S T O R
S H A W N N U T L E Y
S H A W N N U T L E Y . C O M
2. When it comes to investing, the decisions that you make
will determine your financial success over time. Most
people can become better investors with the knowledge that
they attain and the research that is conducted each year. If
you want to learn how to become a better investor to
increase your success, there are a few necessary steps to
take.
INTRODUCTION
3. R E A D B O O K S
According to thebalance.com, many
people rely on the Internet when learning
about investing, but it’s also important to
pick up a few books. It can often be easy
to feel overwhelmed by the amount of
information that is available on the web,
but with books, you can get facts that are
straightforward and clear to avoid
confusion as you increase your
knowledge.
4. E V A L U A T E
Y O U R
S H O P P I N G
H A B I T S
Take a close look at how you spend your
money each week, which can reveal how
to make your purchases and if dropped or
discounted prices influence your
decisions. You’ll need to invest in the
same way by deciding to buy stocks when
the prices are low and after they’ve
dropped, or even waiting until the price is
reduced even more.
5. ALLOW
YOURSELF
TO SLEEP
AT NIGHT
When it comes to investing, there is always
some sort of risk involved as you work to
increase your financial wealth. However, you
should still be able to sleep at night with the
risk that you take and should be comfortable
with the amount of money that you’re willing
to lose. Remember that stocks are not for
anyone, which means you may need to steer
clear of the heat and stick with safer
investment options. If you can’t handle the
thought of losing part of your investments at
times, taking more risk may not be for you.
6. AVOID
WATCHING
THE NEWS
Many investors assume that they need to stay
updated on the news each day to monitor their
investments, but instead it can lead to becoming
too emotional when the market fluctuates.
Instead, study behavioral finance to ensure that
you can control your emotions and avoid
making decisions based on how you feel rather
than based on the facts. Managing your feelings
can allow you to become more rational with
your choices, which can lead to financial
success and a lack of fear of your investments.