Considering the intensity of the competition, the size of the markets and the digital skills that you need to become an investor, trying to make your way as a newbie is both more daunting and easier in some ways. However, expert Shay Benhamou says that you shouldn’t allow these challenges to dissuade you at all. You can learn the ropes to investing and get better at it. How? Here are some tips he has shared to help you out:
- Follow the experts
When you are a brand new investor, Shay Benhamou suggests that you understand how experienced people see and read the markets. This means signing up for newsletter services of pundits and investors who have been studying the markets for a long time, or have been part of them. These are weekly services and can provide you a great deal of insight into what is happening in the market. This doesn’t mean that you start taking anyone’s advice straight away and it is better for you to observe before you put any real money into the market.
- Use a simulator
This is essentially a mock trading account, or a demo account, which enables you to interact with the markets in real-time, but with fake money. The purpose is to learn the basics and Shay Benhamou recommends that you take advantage of it. You can learn the technical aspects of investing, the terminology, how to monitor trends, assess your risk profile and many other aspects. These accounts are easily available and give you plenty of room to practice.
- Be hungry for information
Shay Benhamou says that you need to be hungry for information and market trends if you want to be a savvy investor. This doesn’t mean that you only stay updated about the companies or businesses you have invested in, but the capital markets generally. Before the internet, you could only access limited information, but now you have endless learning possibilities.
- Take a free course
If you have the motivation and time to learn on your own, Shay Benhamou suggests that you do so. There are numerous free investment courses you can find online and they can provide you with the technical background that you need to become familiar with the markets.
- Browse through investor forums
After you are done taking a course and you know the terminology and basics, you should start talking to investors. Shay Benhamou suggests that you check out investor forums online and see how they read the markets and talk. You can also discuss strategies with them and expand your knowledge.
- Find a mentor
One of the most vital things that you need to do, as per Shay Benhamou, is to find a mentor. It is something everyone should do, but not many people are lucky enough to have access to someone who is experienced and has knowledge of the markets. When you are learning the ropes of investing, having a mentor to guide you can make a world of difference. You should try to absorb as much knowledge as possible. This mentor can be a friend, a family member, or colleague, but they should have enough experience to guide you in your investment decisions.
- Subscribe to investor podcasts
As mentioned earlier, you have to be hungry for information and in today’s digital world, there are a lot more sources of information than there were before. There are videos and podcasts available and Shay Benhamou says that they should definitely be used to get tips and guidance. You can find a ton of such podcasts available and the best thing about them is that they are convenient. You can listen to them even when you are working out, or doing something else and still learn.
You can use these tips shared by Shay Benhamou to learn the ropes and become a good investor in the long run.