Becoming an Investor: 5 Simple Steps To A Successful Investment Journey

Success as an investor is not a walk in the park.

Your understanding of your investment goals, the financial market space, and time horizon is pivotal to your success as an investor.

Risk, patience, avoiding pitfalls, trial and error of investing, and building confidence along the way are guides to maneuver your ways to succeed in your investment journey.

In this article, we’ll walk you through these simple yet effective steps to investing and being successful at it.

Start Small 

The most successful investor in the world today were once novices. All that separated them was the rest of the pack is the willingness to start.

While you are just starting with your investment journey, it is relevant that you have a plan around what you want to achieve and how you plan to do so within the scope of time you set.

The baby steps are most times the core step in investment. It is the period when you take action with the final results in mind.

Understand The Market and What Works

Do not follow naysay and the crowd in the market. There are tons of concepts to get you started.

The capital market is robust. Hence, you must get familiar with the financial fundamentals and qualitative factors.

It is to say, you have to be willing to learn how to analyze what is best for your portfolio at different periods. Not buying or selling your assets solely based on emotional triggers will help you build a great portfolio.

In the ever-changing market, diversification is relevant to help you minimize risk while optimizing your return on investment. 

Have An Investment Strategy

It is your investment. It is your plan. The success or lack of it is yours to bear.

Hence, it is relevant to know what kind of investor you are and how to use this to your advantage. Are you risk-averse or risk-tolerant?

Are you biased to some asset classes due to their volatility or liquidity?

Your strategy should take your personality into cognizance. it must consider:

  • Your time horizon
  • Your risk appetite
  • Your knowledge of the capital and money market
  • Asset classes affinity
  • Investment focus (capital growth or income generation)

Having all these in mind while building your strategy is great for clarity.

Have a Long Term Approach

Emotions and wrong advice are great ways to fall short in your investment journey.

Have a long-term orientation around investments as the market will always throw the good, the bad, and the ugly at your face. Your long-term focus will be your best ally.

Build your portfolio for the long term and be guided about investment decisions based solely on emotional triggers.

Be Open-Minded

Investment is a never-ending learning phase.

The best investors always stay open-minded. Being open-minded is the key to finding investment opportunities that aid your journey.

The market is robust, and the resources are enormous. Continuous learning will help you navigate the bends and curves of the market.

While you are at it, do not forget that it is a long run.


Investing is not a child’s play. Taking calculated risks with your capital is one of the scariest things to do.

As scary as it sounds, succeeding changes your life entirely.

Get started, learn the rudiments, apply what you have learned, and do not let your emotions decide for you. Also, always look for investment opportunities in sync with your personality and goals.

That’s it.

Go out there and build a formidable portfolio for yourself.


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