After defining the objective in Chapter 1 for investing the next logical step is to collect the raw materials for investing. I have prepared a tentative list of raw materials required for investing. This list may not be exhaustive but shall be sufficient to invest and generate above average returns.
I will take a break from this chapter here and want to inform you that you should not look at my financial condition right now as it is because of my spending habits. My investments, whatever amount I have invested are giving me good returns based on my informed decisions. The current rate of return on my portfolio is 100% in the past six months.
Now, back to the chapter; I have classified the raw materials into two stages. Stage I consists of materials that prepares you and your mind for investing these would be intangible items that would form the core or the base of your investment decisions. Time and again we shall be referring to them while we make any decision. Stage II shall contain some tangible items including money that are required for investing. I would like to point out here that these items in both the stages are mandatory for those who want to get into investing.
Stage I
- Self awareness
- Open to learning the art of investing.
- Time allocation.
- Conceptual understanding.
- Regularity.
- Awareness and Updates.
- Patience and Focus.
- Discipline.
Stage II
- Revising Stage I items.
- Some know-how of analytical tools and theories.
- Where to invest.
- Platform to invest money.
- Some amount of money.
The Stage II items are not exhaustive as the terms like portfolio, asset allocation, alternative investments, value cost averaging and similar complicated terms will confuse you and deter you from enjoying the learning process. I shall be putting these terms in course of the process. Till then do some brainstorming and try to understand the need for Stage I
Post a Comment