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How to Create your Share Market Investment Plan – and Stick to it!

By December 21, 2015February 5th, 2024Uncategorized

One of the secrets to share market success for those new to investing is to start by creating a sound investment plan with researched trading system that you can stick to.

An investment plan offers the benefits of helping you keep your focus, measure your success, monitor your trading system effectively and make decisions that are aligned with what you aim to achieve. If you have the desire to become a better investor, then a plan is a must and worth investing time into before you begin investing.

Set Realistic Goals

Decide what you wish to achieve, and how long it will take. A personal investment plan functions the best with a set of realistic and achievable goals. A clear list of objectives will help you work towards results, while encouraging you to measure your performance with benchmarking. Without goals, your investing choices won’t have purpose and mistakes aren’t always obvious. Set goals you can achieve in three to six months, but also set ones you can conquer in three years. When you can see results, you will be inclined to stick to your timeline. If you aren’t seeing results your trading plan can be revised as indicated in your trading plan. For guidance on what returns are achievable and on offer click here.

Don’t try to overcompensate any losses

Knowing how to handle loss is an important topic to address in the planning stage. Prepare to ride along with the rises and dips of the share market, and if and when you do lose money, don’t steer away from what is indicated in your trading plan and break the rules of a historically researched trading system. Accept your losses with profits, maintain objectivity and keep moving forward with your plan. It is important that your investment plan has a trading system that has been extensively tested through falling and rising markets. If you would like support on maintaining the right mindset, trading plan or system guidance please contact us.

How much are you willing to lose?

This is one of the tougher questions to ask yourself, but it’s crucial. You may lose money at some stage in the share market, so make sure you’re financially stable before you dive in. Make sure you’re sitting comfortable with mortgage and car repayments, or any other important ongoing cost, before you set aside money for investing. Only invest with capital you can allow to fluctuate through the ups and downs.

Know what you’re capable of

You’ve only just dipped your toes in the water – don’t set yourself up with huge expectations. Allow yourself time to get a feel for the fast paced world of investing, and learn to respect your limits. Experience is only created over time, so don’t be hard on yourself for starting off as a novice.

To start your share market journey with support and experienced guidance, give Share Wealth Systems a call on 03 9585 0300.

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