Investment Advisor: DIY Investment Advice: KTC Know Your Customer

by humagaia

Who is the best investment advisor for you? It's you! KYC know your customer. It's you. Save your money: be your own investment advisor. You know your needs better than anyone else

Don't do an investment advisor search: you've found the best investment advisor already. It is you.
Be your own investment advisor, cut out the middle-man, save on all that unnecessary expenditure, and invest the money you save instead.
KYC know your customer - you are the only person that can really know your hopes and aspirations, fancies and fears, reward requirements and risk (or lack of) requirements.
DIY investment advice is no worse than professional investment advice. Professional advisors do not make fortunes for their clients, they make a living for themselves and a profit for their employers.

Investment Advisor

You are best placed to give yourself the best investment advice

Instead of undertaking an investment advisor search (or is that investment adviser?), why not just cut out the middle-man, and become your own investment advisor. It may surprise you to know that, over time, most so-called professional money managers do a consistently poor job with their clients' money.

Incredible as it may sound, academic research over many years has shown that throwing a dart at the stock market pages in your newspaper and investing in the stocks and shares that this action highlights, will prove to be more beneficial financially than leaving your financial future in the hands of most professionals.

This includes Unit Trust Managers and Pension Fund Managers (the Funds often use professional Fund Managers within Stock Brokers to undertake financial investments on their behalf).

So, adding what you will learn henceforth to your own innate skills, will almost certainly prove to be more monetarily beneficial than employing any investment advisor. Add to that the substantial savings in management fees and commissions, and you have a win-win situation.

What you save in fees can be invested to compound your income growth potential.

KYC Know Your Customer - It's You!

aka Know your client

First, it is essential that you 'Know Your Customer' (know your client).

Well, since it is yourself, you may say that you already know yourself.

You may know yourself, but it is unlikely that you know yourself as an investor.

To know yourself as an investor you will have to ask yourself some basic questions and answer them honestly and to the best of your current capability.

If a successful professional investor were to be asked to describe the single most common failing in any investor just starting to design their personal investment strategy, the most likely response would be 'unrealistic expectations'.

Stockbrokers probably see this the most.

New investors plunge into the market with a 'get rich quick' mentality, usually at a time when stocks and shares have been increasing in value rapidly, and they don't want to miss out on the opportunity.

They hope to achieve that instant wealth that they think everyone else has achieved.

They have fallen into the herd mentality and jump on the bandwagon.

Unfortunately, they are usually just too late.

As the masses follow the herd, then the investors get out (sell too soon!). Such people that follow the herd in this way are not investors at all, but speculators. And like most speculators they lose more times than they win.

Conversely, experienced investors study carefully, using all the information at their disposal, the factors underlying any given investment.

It is a considered approach.

Time is not of the essence. Once all information has been processed a choice is made on the basis of which investment offers a satisfactory potential level of return, at any given level of risk.

How do you ensure that you act as an investor, and not as a speculator?

By using the appropriate techniques to maximise return and minimise risk.

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Risk is always inextricably linked with return.

The art and science of investing revolves around the techniques for minimising risk whilst maximising potential return.

You are your own best Investment Advisor.

Next Investment Article

Investment risks may be high risk or low risk. There is no such thing as risk free investments. Planning a low risk investment strategy for long term, & high risk for short term is
Updated: 03/16/2012, humagaia
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