Becoming an investment expert is a dream of every investor. It’s glory and fame is the major factors, people generally interested to have this title. It is easy to say the word ‘Investment Expert’ but it is not that much easy to shape one fit to that title. What is ‘investment expert’ title really means? Nothing, having acquired skills which helps a person to determine advantages and disadvantages prior to make any investment decision! An investment expert should have enough skills to evaluate the possibilities and drawbacks of an investment from all angles. By sticking to the law, ‘Nothing Impossible in this world’, we are moving to the next session, the important three points that can make a person a real investment expert.
Have good knowledge about mistakes – the first step to become and expert Investor.
The best way to attain verbal investment knowledge is through reading books and magazines. It would make you knowledgeable about the subject. However, such knowledge can’t be considered as practical. There is not limit how you going to apply these verbal skills to practical life. Your step to become a smart and expert investor should start from understanding the mistakes happened to people and public. Talk to investors, chat and interview them frequently. Collect and record information about all the mistakes committed by them along with its impact or happened lose. Of course, it required to put lots of effort and time. Once you have done, you are in the safe side by knowing the possible side effects of some action if you would do.
Respect the power of strategies
Strategies are different depends on person and investing style. As a value investor, we may know the best and successful investor in the world. Start reading and recording their strategies. Never fail to record their mistakes and the reason why it happened to them. You will wonder by knowing some of the common strategies all these people have. As said above, this is similar to a copy writing process. Get it by using all possible sources like direct interviews, biographies and autobiographies, books about them and even use of internet. List down the strategies to prepares right set. This would help you when dealing with final step below:
Adopt and build your own set of rules
You have a right set of mistakes and its impacts. You also have a set of good strategies by great investors and information on how they used. It is your time to adapt and build your own investment strategies. Once you are ready, go ahead with that. Build your circle of competency and stick to that. It is a time taking process by knowing your capacity and how fast you able to understand and adapt it. For example, it is difficult to learn and adapt the Margin of Safety allegory of Benjamin Graham because it required lots of effort and right level of understanding skills. You can’t avoid this because it is the investment strategy of this great investor. If such happening and you are willing to adapt such difficult strategy to build your own investment rule, work hard to get it done.When coming to the point of knowledge acquisition, one gets it from four levels. From parents, from teachers, from own research and finally from life experiences. Once after completing above mentioned third step, you still not claim as an expert investor. You have lots of experience remaining from life. Above three steps are the open doors to the fourth, major step. Go with confidence. You will finally come as an expert investor!
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