Being an investor is not just about making money, although that is a big part of it. Historically, investors have always had opposing views from one another, which has made it more of a go-by-your-gut-and-research kind of industry; investors don’t really trust advice from fellow investors.
Professional investor Jay Jiang Yu.
However, they can all agree that some businesses will sink your boat, and you need to look for the best possible candidates. Jay Yu, a successful private investor who applies forward-thinking in his decisions, notes that investors should always do their due diligence before committing funds to a company.
Many young investors often find themselves abide with businesses that would have been successful but somehow slipped right through the cracks of a fast-paced world. As a result, Jay is offering five pro tips for private investors to consider about private investing.
Start with research
Sometimes, going by your gut feeling will get you where you want, but this doesn’t always work, as it’s a gamble. Therefore, successful private investing, according to Jay, must begin with research. It is advisable to look at the company's quality you’re considering investing in and take a closer look at their management, roadmap, and the investment asking, before you jump both feet in.
You’ve got to have patience
Investing is a long game kind of a venture; you can’t expect instant results, and you need to be patient enough to wait for your investments to pay off. If you’re more interested in instant results, private investing is definitely not for you. A good private investor knows how to play the field effectively, and patiently waits to make moves that will help you ride out rough markets.
Be a forward thinker
The world today waits for no one, and if you snooze, you’re left years in the past. Looking ahead and seeing what’s coming before it’s here is the best way to stay ahead and at the top. Jay stresses the importance of identifying opportunities and studying economic patterns to see what’s going to happen next. Always work towards being the next big winner with out-of-the-box thinking.
Have conviction
Indecision is your enemy when it comes to investment; the longer you take to make up your mind, the more you lose. Being an investor, you must trust your decisions and avoid teetering on the edge; commitment is important. Even as you diversify your investment options, you need to know how to make up your mind fast. This also speaks to choosing your own path even when everyone follows another; don’t be easily swayed by crowd mentality.
Ask for advice
Even though investors don’t trust each other’s points of view, you should still ask for advice from investors and entrepreneurs to diversify your perspective.
Private investing is rewarding, but it’s not easy; you need to invest time and hard work to get returns and at times willing to take an active role. Jay Yu emphasizes to private investors that they should seek pro tips to help their investment decisions.
Photography by: Photos courtesy of Jay Jiang Yu.
