It’s been an interesting and turbulent year for markets, but 2018 is finally almost drawing to a close and the New Year is almost upon us. Investors who managed to tolerate the volatility in markets would probably be breathing a collective sigh of relief. Even as we reflect on our investment performance for this year, we should already be looking out for ways to improve ourselves so that we can do better in the coming years. Here are four suggestions on how to improve one’s investment skills and acumen for 2019.
Basic Accounting Courses
As accounting is, literally, the language of business, it’s useful for investors who are not trained in accounting to take up basic accounting lessons. I wrote in an article some time ago on why learning accounting can help in investing. If one wishes to open up companies’ earnings announcements, then one would need a basic understanding of accounting concepts to make sense of the numbers and what they imply. There is no need for advanced accounting courses – just a basic one would do for investors to familiarise themselves with the common terms and jargon.
Read More (Much More!)
Make an effort to read more – be it books and articles on business, finance, companies and industries. Reading enriches the mind and allows an investor to have good knowledge of many aspects of the world around us. By making a resolution to read, the investor is effectively telling himself that he wishes to enhance his knowledge base, which will be helpful when it comes to analysing companies for investment.
Treat Investing Seriously
If you’ve been speculating and gambling in the stock market so far, my advice would be to stop as the stock market is not a casino. The stock market is, in fact, a venue for companies to raise capital, and each stock has an underlying business behind it. Investors should view investing as a serious activity worthy of study and analysis, and not treat it as a form of punting. One’s attitude to investing is important – if you do not put in time and effort in any endeavour, you would not see good results.
Enjoy The Investment Process
Investing is a journey of building and growing wealth, and investors should embrace and enjoy the process. Think of it as planting the seeds for financial success now and then enjoying the fruits of your labour many years down the road. Investing is also a journey of self-discovery as you start to learn more about your psychology and shortcomings. The process can make us a better person if we learn from our mistakes and strive to do better.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.