Updated: June 17, 2021
Browsing through numerous investment offers, we can often come across financial advisors who are developing as an “information business”.
Paid courses, where they promise to teach you how to build your investment portfolio and get massive returns (these promises are rarely fulfilled).
All of these financial advisors tend to be skeptical about passive investing.
“Give someone my money under management?!”, “What if he loses everything?!” etc. “I better learn about investing myself!” they say, and the funniest thing is that they think it’ll take them “just one hour a day!” (And some even suggest that spending only one hour a week is enough) You will learn how to build and diversify a profitable portfolio!”
So if it’s that simple why can’t everyone do it?
It’s as easy as making money from betting! Profit from bankruptcy! Become a cryptocurrency millionaire! Get rich by trading Forex!
Now ask yourself: Can a private investor with a small capital really be able to analyze the entire market and find the most promising stocks? (Especially spending one hour a day?)
- He would also need to catch the moment when the crisis is coming and adjust his portfolio right in time, avoiding bullish or bearish traps. He’d have to make the right trading decisions when FOMO (Fear Of Missing Out) reigns over the market…
- Or maybe, just maybe, this task is more feasible for a fund, that spends a huge sum of money (often bigger than this private investor’s entire initial capital) on third-party analytics, or even pays a whole team of analysts every month?!
- In fact, this is just a sneaky psychological trick! Deep down, people tend to believe that they are all geniuses. That they will do better than the others. And maybe some of them will – 2-4% will succeed! The rest will simply invest their capital and buy some life experience. And the experience usually comes with a price.
- And then these investment coaches will share the results of their successful students — those 2-4%! Although, even some of these “lucky students” also lose part or all of their capital in the future.
- As a result, you only lose your precious time!
Start growing your capital using the services of professional asset managers!
And if you want to try yourself in the role of a trader, if you have time and desire to hone your trading skills develop in this area – don’t limit yourself, but be smart and do it wisely!
Experienced investors keep about 5% of high-risk investments in their portfolios. These are the funds they can afford to lose without damaging their capital. At the same time, these investments offer increased profitability.
Learn from these 5%, and if everything works out for you, allocate part of your profit to less risky instruments (lock in your profits), and reinvest the rest, growing your deposit.
If you’ll be earning more – great, the more profit you’ll lock in. If you lose everything – not a big deal, you’ll gain experience. You’ve already locked in your profit anyway, and even if not, your capital will be still growing under the management of professionals, while you’re learning to become one!
If you decide to entrust your money to a money manager, make sure to carefully study his reputation, experience and etc. Don’t look for reviews on the Internet. Check the license, certificates and other documents. Find out within which jurisdiction they operate, how long they exist on the market, look at historical profitability and results they showed during the periods of crisis. (But keep in mind, that profitability in the past does not guarantee the same success in the future)
The fewer doubts and worries you have, the better you will sleep at night!
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