We are all looking for a sound investment. In an unstable economy people become nervous about finding the right investment. If you are an individual investor looking for advice then this article will help. Recently I interviewed Bret Rosenthal, the founder of the ARMR Report, on my “Transition Guy” podcast. The ARMR Report, stands for algorithmic risk management research and is a virtual hedge fund which applies hedge fund essential steps in investing to the individual investor. He gave some top tips below.
The most successful investors did not emerge overnight. It takes time and patience, not to mention trial and error, to learn the ins and outs of the financial world and your personality as an investor. This article will walk you through the first four steps of your investment journey and show you what to look out for along the way.
Risk Management Strategy:
Hedge funds do exhaustive research. Then they use algorithms which individual investors don’t usually have access to. An individual investor uses emotion when investing whereas a hedge fund does not. If you want to be a successful investor ensure that you have a risk management strategy in place and trade in facts not emotions.
Do Your Research:
Currently we have high inflation across the globe and an uncertain land war. We’ve got supply chain issues that no one can control. How does all of that really affect investing? People are holding onto their cash which means it cannot work for them. However, there are distinct times in the market where short-term money market funds protecting your capital while the market is imploding can be the best way to put capital to work. There are strategic times to hold cash, assets will then drop and you can step in.
Out of the Rubble Rise Great Investment Opportunities.
A lot of people are looking for one investment that they can retire off. Don’t look to making money in a recession quickly – it can be a dangerous strategy. Money will find its rightful owner if you don’t disrespect it. Think about how you want to plan for the future. Commodity backed investments may be something you want to look at. Big energy companies like Shell corporation have good yields currently. Now may be the time to start putting those in your portfolio. You could get capital appreciation because of rising energy prices.
Start Building Your Portfolio One Step at a Time.
Even if you begin with $10,000 – 20,000 you begin building the process. When you start at that level and you build the right approach, as you grow, as you put more capital in. Then you earn the right to take more risks. It’s important to start building the right way. Use your whiteboard. Execute algorithmically, if you can. And then, have strong stop-loss disciplines.
If you are looking to scale your business and you need a little bit of help from a business scale coach to look at the areas where you might have some blockages, do your research and try to find the most reliable for your needs.
Be Willing to Learn
The market is difficult to forecast, but one thing is for certain: it will be volatile. Learning to be a successful investor takes time, and the investment journey is typically lengthy. The market will occasionally prove you wrong. Recognize and learn from your mistakes.