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Assess Your Current Investing Process

If you have no clue what you’re doing wrong when investing — you can’t get better at it.

It’s as simple as that.

That’s why today’s article is designed to help you assess your current investing process…

And figure out the steps you must take to optimize it.

(Full disclosure: this is basically an adapted chapter of my short book. “Adapted” because I must keep some elements exclusive to the book owners.)

Now, before you dive into this self-assessment, you must promise YOURSELF one thing:

You’ll strive to be 100% honest and realistic when assessing how much the below statements apply to the way you invest.

I capitalized “yourself” because no one else truly cares about your results as much as you do. So, not being honest and failing to put some serious thought into evaluating each statement only hurts you.

With that said, let me explain how this self-assessment works.

I’ve compiled 17 statements, all based on my 30+ years of investing & mentoring other investors…

And the knowledge and skills passed on to me by my own mentors and coaches.

All you need to do is rate yourself on how accurate the statements are in relation to your own investing process.

As you read, it will become obvious that the more you can relate to the statement — the better your investing process is.

The point is to set aside each statement that doesn’t apply to your current investing process…

And think long and hard about why that’s the case and how you can make it more accurate for you in the future.

I’m not going to give you a definitive grading process in this article (which I actually do in my book). Instead, my goal is to make you think deeply about your current investing process, and identify any areas that need improvement.

With that said, let’s get into it:

Statement #1: I Have An Investment Plan

You have a fully documented and written down Investment Plan, which guides EVERY investing action you take.

In other words, you have defined your investing mission and goals. Along with clear and unambiguous rules & criteria for sell/buy decision-making and risk/money management.

Note: Virtually every investor will tell you crafting a well-documented Investment plan is critical for long-term success in the stock market. And most have some kind of idea on the points above.

Yet around 95% of investors never get around to actually putting their plans in writing. And without that step — you can’t say this statement is accurate for you.

Statement #2: I’m Outperforming The Market

Your Portfolio Equity Curve has a consistently higher Annualized Return % than the Total Return (Accumulation) Index.

Sure, it has retracements. But acceptable ones that don’t endanger the fact your returns outperform the index in the long run. And remember, if you’re beating the market…

You’re crushing the majority of brokers and mutual & managed funds.

Statement #3: I Know What To Do No Matter What The Market Throws At Me

Drawdown, volatility, bull market, bear market, etc. Whatever the scenario, you’ve got a plan for it in place.

And you follow it to the letter.

So, whatever the stock market does, you know what action to take.

This makes managing your stocks portfolios an activity you enjoy doing.

Statement #4: I Have Confidence To Go Against The Flow

When every guru, analyst, news outlet, etc., is calling an overheated market, you remain confident in your investing process and continue to maximize your portfolio exposure.

If that’s in line with your pre-defined action plan for the current market scenario and conditions, of course.

Statement #5: I’m Hitting My Performance Goals

You have clearly defined both your protection and growth goals in your Investment Plan.

And you ensure you consistently achieve them by following your investing action plan without exception.

Statement #6: I’m Not A Full-Time Market Analyst

In fact, you spend less than 1 hour a week managing your portfolio. Which is more than enough to accomplish your goals (unless, of course, your goal is to be a full time day trader).

This 1 hour includes all reading, research, analysis, discussions with 3rd parties, paperwork, and recording transactions in a Portfolio Tracker.

Statement #7: I Have Inner Peace And Emotional Stability With Regard To My Investing

You feel completely at peace with the way you make investment decisions. And you spend very little time (outside of your allotted 1 hour per week) even thinking about your portfolio.

Having clear rules and criteria to guide every decision creates a liberating feeling that replaces anxiety, expectations, and stress.

Statement #8: I Have Ample Time For Vacations

If you’re a near-retiree, you can treat yourself with 3-4 weeks of being completely unplugged from the world. Without interrupting the execution of your portfolio in the process.

In fact, as long as you have an internet connection, your portfolio should always be protected. And grow.

Note: If you’re retired, 3-4 weeks should turn into 3-4 months.

Statement #9: I Use An Effective & Zero Analysis Buy And Sell Process

You have a documented, objective process that instantly notifies you about sells in your portfolio…

As well as new buys when you have available capital.

This process works without any analysis or effort on your part. You simply get an alert from your system to act — and you do so.

Statement #10: I’m Treading The Path To Consistent Market-Beating Results

You have a clear vision and action plan to take your portfolio to 15% annualized returns over the long-term.

Plus, you monitor, measure, and manage your portfolio using a verified decision-making method.

Statement #11: I’m Not Worried About The Next Market Crash

Not only don’t you fear market crashes…

But you embrace them and all other market corrections.

That’s because you have pre-defined and documented precisely what to do when such conditions come around.

Statement #12: I Have A Tailor-Made Risk Management

You pre-define your risk for every trade based on your preferences.

In other words, you know exactly what criteria will lead to you closing your stock positions…

BEFORE you even open them.

Statement #13: I’ve Mastered My Position Sizing

You know how much money you’ll put into every trade. Precisely to the dollar.

Meaning you have a formula that helps you calculate the exact quantity of shares you will buy. And how much you’ll invest in each position.

Statement #14: I’m Maximizing My Capital Growth

You rarely have idle cash gathering dust in your broker’s account.

Instead, your investing process keeps your capital invested in the market where it can grow.

Without compromising your pre-set risk management rules, of course.

Statement #15: I’m Living Life To The Fullest

You have plenty of time to spend with your family, friends, hobbies, or anything else that gives you joy.

In other words, the time you spend on investing doesn’t stop you from doing day-to-day activities you enjoy.

Statement #16: I’m Operating In The “Zone”

You’ve developed a “zone” you enter during your daily investing time.

In it, you remain vigilant and ready to pounce on the next buy/sell action your system alerts you to.

And you never go against these alerts or disregard them.

Statement #17: I Love Both The Action And The Outcomes

Using your system every day without exception produces a feeling of satisfaction.

Plus, you’ve come to terms with all outcomes from any trade or any period in the market. Good or bad.

That’s because you know consistently executing your system with a verified Statistical Edge will lead to long-term profits that meet (or exceed) your financial goals.

How To Bring Your Investing Process Closer To The Optimum

If at least 14 statements were accurate for your process — you’re in a good spot. But as I’ve said, until all 17 statements apply to you, you have room for improvement.

So, if you want help with optimizing your investing process and boosting your chances of achieving consistent profitable results in the stock market…

Shoot me an email with your current investing situation.

I’m happy to help whether your current process lacks 1 or all 17 statements above. Or anything in between.

I can’t offer specific advice. But I can point you in the right direction to find what you’re looking for.

To your investing success.

P.S. If you want to see and apply my full investing process self-assessment procedure…

Check out this book.


  • Wakefield Robert Sykes says:

    I agree this is a useful way of assessing your investing process and emotional/psychological state
    I reckon I’m about a 14 or 15 which is not too bad considering the last 18 months or so!
    I owe it to Share Wealth, it does bring an enviable freedom to investing in the stock market
    thank you all

    • Vincent Duggan-Jones says:

      Thank you for the vote of confidence and your continued support, Wakefield. It’s been a privilege to share the journey with you.

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