Managing Your Own Investments
Individual investors now have unprecedented access to investment information and markets. Detailed security statistics and real-time news are easy to obtain online, which has leveled the informational playing field. But although individual investors are constantly encouraged to “do it themselves,” can they can manage their own investments as well as the professionals and without the assistance of paid advisors? More importantly, should individual investors go it alone? These are challenging questions that require honest self-evaluation to answer. Let’s take a look at how an investor can tackle this subject and help you choose an individualized opinion on the matter.
Your largest advantage is that no one knows you better than you know yourself. This places you in a unique position to tailor your investment strategy more precisely. You also do not face many of the short-term pressures that the professionals face. Despite their supposed long-term focus, they are largely judged on recent performance and failure to perform well in the short-term can lead to job loss. You are in a position to take a longer-term perspective.
Becoming your own investment advisor and money manager is not easy, but it can be done and if it is an activity you truly enjoy, it can be extremely rewarding.