DIY Stock and Securities Investing

So how does a motivated, hard-working person like yourself reach their financial goals? One way is through stock and securities investing. I’m here to help.

I write clear, practical financial guides for everyday people without complexity or jargon.

You’ll appreciate the book’s 250 pages and detailed table of contents the next time you’ve got a stock investing question.

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Risk Tolerance for Investing

Before creating an investment plan, determine how comfortable you are with risk regarding investing. Maybe you’ve already taken one of those ubiquitous risk management quizzes you see on the internet. Although there are a few good ones, I find many of them unhelpful and even silly.

Assess your own risk tolerance for investing. You must get it right; Otherwise, you’re less likely to stick with your investment plan when the going gets tough.

Getting More Involved

My One-Stop-Shop Investment Plan is one of the simplest investment plans, yet it delivers great results with minimal effort. Getting More Involved with your investment plan might mean tinkering with it a little or a lot; it’s up to you to choose your level of involvement. Just be sure you have the extra time to commit to performing any extra management duties.

The strategies presented in DIY Stock and Securities Investing are utilized by many successful professional traders and are based in part on Modern Portfolio Theory. Read the book and utilize online resources to help you understand it better.

Risky to Not-So-Risky Ratio

After gaining a better understanding of your own risk tolerance, what’s next? Determine your risky to not-so-risky ratio for next year. This alliterative ratio should consider both risk tolerance and time horizon in the first year and all subsequent years of the investment plan.

Dynamic Diversification

Next, make sure you add plenty of dynamic diversification to both the risky and the not-so-risky sides of your investment plan. This ensures a smooth landing and increases the chances of you achieving your goal, despite possible negative market conditions.

Rebalance and Reassess

After initial setup, only occasional tinkering with your investment plan is necessary, freeing up your time for less boring activities. At least once a year, however, you absolutely must rebalance and reassess your investment plan. If you don’t, you could violate tenet number 2 on my list of 5 Tenets of Successful Stock Investing, which you never want to do.