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A guide to DIY disciplined investing

Updated: Apr 6, 2023

Investing is a critical component of building and maintaining long-term wealth. But with so many different strategies and approaches to investing, it can be challenging to know where to begin. Here is a guide to help you create and maintain a solid investing approach:

Step 1: Set clear financial goals

Before you start investing, it's crucial to define your financial goals. The investment strategy is geared toward the goal as it is the primary ‘why’ behind investing in the first place. Without proper goals, it can be easy to deviate from the investment plan.

Step 2: Determine your investing policy

This involves gaining an understanding of the risk/reward of each investment you select. Writing this down can keep you poised and focused in a downturn, and help you navigate through various adverse events.

Step 3: Continue to stay educated and be thorough when determining investments

Diversification is the key to successful investing. By spreading your investments across different asset classes and sectors, you can reduce your risk while maximizing your returns. A well-diversified portfolio should include stocks, bonds, and other types of investments.

Step 4: Selecting investments.

Once you have defined your goals, determined your risk tolerance, and developed a diversified portfolio, it's time to choose your investments. There are many different types of investments, including individual stocks, mutual funds, exchange-traded funds (ETFs), and real estate. Each investment type has its own advantages and disadvantages, so it's important to research and understand each one before making any decisions.

Step 5: Monitor and adjust your portfolio

Investing is a long-term game, but that doesn't mean you can set it and forget it. It's important to regularly monitor your investments and adjust your portfolio as needed. This might mean selling off underperforming investments, rebalancing your portfolio, or making new investments to take advantage of market opportunities.

Step 6: Stay disciplined and patient

One of the biggest mistakes investors make is letting their emotions guide their decisions. It's essential to stay disciplined and patient, even during market downturns. Remember that each investment, and account they are located in have a specific goal, and it is important to not deviate from that goal based on adverse events, or the presence of ‘better’ investments. It is also important to be wary of

Step 7: Seek professional advice if needed

If you're new to investing or feel overwhelmed by the process, it may be helpful to seek the advice of a financial professional. A financial advisor can help you define your goals, develop a personalized investment strategy, and provide ongoing guidance and support as you work towards your financial goals.

In conclusion, creating and maintaining a solid investing approach requires careful planning, discipline, and patience. By setting clear goals, determining your risk tolerance, developing a diversified portfolio, choosing your investments carefully, monitoring and adjusting your portfolio as needed, and seeking professional advice if needed, you can build long-term wealth and achieve your financial goals.


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