4 Tips for Self-Directed Investors
Investing successfully requires more than reading a few articles and following trends. Effective investment means taking the time to craft a thoughtful plan accounting for personal objectives and external factors, then tailoring a strategy to fit. These four time-honored tips can help any self-directed investor formulate that plan and reach their goals.
Tip #1: Plan for Success
Markets are dynamic – there is no way to predict their behavior with 100 percent accuracy. That makes it even more important to develop a plan that accounts for a variety of factors like personal goals, tolerance for risk, and timeline, then invest accordingly. Creating a plan with diversified assets and portfolio percentages and sticking to that plan in bull and bear markets means investors can better weather the inherent ups and downs of market behavior and maximize returns.
Tip #2: Do the Research
While market behavior is unpredictable, research gives investors the information they need to make informed decisions and increase their chances for success. Self-directed investors benefit from looking beyond surface level observations like stock market performance or mutual fund fees and digging deeper into material like a fund manager’s background and investment style, annual fund reports, and more. Investors can then analyze how a prospective investment fits in context with their goals before making final purchasing decisions.
Tip #3: Think Rationally
Stocks on strong bull runs can be intoxicating – after all, all investors want to beat the market and earn hefty returns. But following the hottest stocks of the moment and basing financial decisions on their current trajectory often leads to disadvantageous behavior, followed by weaker performance. The same applies to downturns in the market, when emotional decision-making can lead some investors to jump ship early – with harmful future ramifications. This makes it vitally important for investors to lean on their heavily-researched plans in good times and bad, trusting that they have accounted for negative and positive trends. By articulating clear goals and backing them with research, investors can avoid fearful and emotion-driven behavior.
Tip #4: Stay the Course (But Be Open to Changes)
Self-directed investors that have done the research, developed a well-considered plan, and back their decisions with data are already setting themselves up for success. The final piece of the puzzle is equally important: investors must be willing to reevaluate their goals and periodically adjust the plan to meet them. This means rebalancing the portfolio to reflect shifting markets, while also trusting the overall strength of the plan no matter how the market behaves. Thorough planning, thoughtful research, data-based decision-making, and regular reevaluation can set any self-directed investor on the path to sustained success.
Bonus Tip: Use Algorithms and A.I. to Help You Formulate Investment Ideas
Tickeron has developed user friendly Artificial Intelligence tools to help new and experienced investors generate investment ideas. Tickeron’s A.I. is capable of evaluating a portfolio and providing a “Diversification Score,” to tell the user how well-diversified their portfolio is. The A.I. can you allocation ideas based on your risk tolerance, investment objectives, and the investment options available.
But there’s more. Tickeron’s A.I. is capable of performing a multitude of functions:
- Finding stock patterns in the market
- Finding trends in the stock market
- Testing portfolios to see if they are well-diversified
- Back-testing statistics to see how different stock patterns generated trading results
- Making Predictions for price movements in the future, with “A.I. Rank” and level of confidence in the trade.
And much more. No longer is AI just confined to the biggest hedge funds in the world. It can now be accessed by everyday investors. Learn how on Tickeron.com.
SPY's RSI Indicator recovers from overbought zone
The 10-day RSI Oscillator for SPY moved out of overbought territory on December 09, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 47 instances where the indicator moved out of the overbought zone. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SPY as a result. In of 68 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SPY turned negative on December 10, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
SPY moved above its 50-day moving average on December 20, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in of 366 cases, the price rose further within the following month. The odds of a continued upward trend are .
SPY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 447 cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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