Are You The Active Investor?

You have decided the investment option in the stock market. The shares are risky but more rewarding when the tide goes up as compared to conventional investing.   

So; whether you’re in financials, derivatives, futures or equities, that’s great!

What isn't great, arguably, is the level of participation and involvement you place yourself in your own portfolio. It’s a decision to be arrived at soberly because it’s all about your wealth plan, and for that matter your wealth-creation plan is in your own hands.

Appointing your portfolio manager or investment broker is a good thing to do. You leverage yourself with the expertise of the professional. Staying out of the nitty-gritty’s and leaving virtually everything in the hands of the service provider is one step I want to caution you about.

Your investment is your life. It’s a mission towards your vision. It’s your sole and not a shared vision. You need to be hands-on 24/7. You have to give directions and call the shots. You have to engage fully with every progress report from your broker. You need to follow closely the path travelled by the institution and sector where your investment is. You have to go the extra mile. You need to be more actively and deeply involved in your investment than your broker.

And it’s not difficult to do that. When you get invites for shareholder meetings, do honour them. In fact, avail yourself for all your investment-related activities. Be on the look-out for any apps and gadgets that are designed to enhance your understanding and knowledge of the investment. Look out for online lessons relating to your investment; there’s plenty of them around. I purchased a programme called ChampPro which has empowered me greatly on analysing the market.  Be the first to lay your hands on journals and publications on your investment. Go through the annual report and seek clarity where necessary.

Shadow-box your way to the market. This means that when you wish to invest on a particular sector or tool, do your own practice and compare it with what your portfolio manager recommends and advices.

In no time you will be confident enough to do about everything on your own. Because, after all, it’s your wealth.