(EN)
3 Tips to Set Yourself Up for Direct-Investing Success
Written by The Content Team | Published on September 5, 2018
MOST RECENT ARTICLES
Thank You!
You have been successfully subscribed to receive more Inspired Investor articles from RBC Direct Investing.
Your Subscription Failed
Your subscription to Inspired Investor has failed. Please try again at a later time.
View Legal Disclaimer
RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of the Canadian Investment Regulatory Organization and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence.
© Royal Bank of Canada 2024.
Any information, opinions or views provided in this document, including hyperlinks to the RBC Direct Investing Inc. website or the websites of its affiliates or third parties, are for your general information only, and are not intended to provide legal, investment, financial, accounting, tax or other professional advice. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Direct Investing Inc. or its affiliates. You should consult with your advisor before taking any action based upon the information contained in this document.
Furthermore, the products, services and securities referred to in this publication are only available in Canada and other jurisdictions where they may be legally offered for sale. Information available on the RBC Direct Investing website is intended for access by residents of Canada only, and should not be accessed from any jurisdiction outside Canada.
EXPLORE MORE
Pop Quiz! How Much Do You Really Know About Investing?
Testing your knowledge can help reinforce what you know, and may teach you a few things too.
Small But Mighty? Learn More About Small Caps
Small caps are making headlines – here’s why they could offer unique investment opportunities
Planning For Last-Minute School Savings
Some families may need to catch up on their post-secondary savings. Consider these questions as the years tick on.
You Know More Than You Think
A guide to investing in stocks.
Today, with the help of online investment tools, it's easier than ever to take control of your investments. Each of us has goals and plans for the future. They could include anything from taking a big trip to buying a home. Whatever your dream may be, there's a good chance it comes with a price tag. Making informed investment decisions is a key factor in reaching our goals. Here's how to set yourself up for success.
1. Identify your goals and make a plan.
Investing and travelling have a lot in common. Whatever your dream vacation looks like - hiking to Machu Picchu, lounging poolside in South Beach or gallery hopping in New York City - it needs two things: a goal and a plan. Maybe your dream is to buy a home, start a family or start a business. To reach that goal, you'll need a plan of action. Each of us wants different things from travel - and from investing. Where you go and how you get there are entirely up to you. Online investing makes it easy to access a wide range of investment options and tools - whatever your investing style.
2. Use a practice account to gain confidence.
The best way to discover what kind of traveller you are is by travelling. And before you set sail on a solo voyage across the ocean, it's a good idea to test the waters with a shorter practice trip. The same is true for investing. Using a practice account is one of the best ways to build your confidence. You can take as much time as you need to learn how to use the online investment tools. You invest with "practice money," so there's absolutely no risk. The more you practice, the better you'll understand your investing style and comfort zone as a self-directed investor.
3. Increase your financial literacy.
Just as travel can enrich our lives, self-directed investing is an opportunity for lifelong learning. Investor education falls into two areas: extrinsic and intrinsic. Extrinsic investing skills focus on the technical aspects of being an investor. These include personal finance, researching stocks, asset allocation, using tools, choosing trading strategies, tax-efficient investing, and portfolio balancing.It's also important to complement this technical know-how with intrinsic investing skills. These skills focus on the behavioural aspects of investing and include understanding investor psychology and temperament, as well as our personal values and goals.
There's a lot to learn! Fortunately, self-directed investors have access to online tools, webinars, tutorials and videos to continuously expand their financial expertise.
There are no guarantees in travel or investing, but the better prepared you are, the more likely it is that you'll reach your desired destination!