Chellie Mejia

Using self-discovery to improve portfolio performance

By Chellie Mejia, B.Sc

Regardless of how experienced, knowledgeable, or just plain lucky you are, the fact is that when it comes to investing, market volatility is inevitable.  So if you’re getting ready to play with the big boys (or, you know, conservative, medium-sized gentlemen), then you ought to prepare yourself for the roller coaster ride that comes with any investment plan, particularly during uncertain economic times.  But even on the lows of this ride, the opportunity can always present itself for an in depth reflection on what your investment strategies and objectives are and how to regain some measure of control over your goals.

One of the most useful lessons I’ve come across in helping to manage your investment strategy is to understand that not everyone’s investment personality is the same.  Everyone has different objectives for what they want to achieve with their plan, so the plans themselves should differ considerably.  So during uncertain economic times, it really is a good idea to sit down and figure out what your investment personality is.  This will help you in determining what strategy will be best for you, whether it’s trying to pick out individual stocks, implementing recommendations from a trusted or professional advisor, or following a less structured strategy of your own.  Any one of these strategies could work, but the real question is which one will work for you?  Finding the answer to this question could very well be the key to mastering the investing process.

Ask yourself the pertinent questions to determine your investment personality.

Would you rather reduce the risks taken and sacrifice potential return?  Or are you okay with taking more risk if it means the potential for an increased return?

What are your investment goals?  Providing security in the long term?  Building wealth in the short term?  Or supporting other external aspirations and growth?

When you’re comfortable with the answers to those questions, you can use this information to get a handle on what your views are about money and investments, and then perform a thorough audit of your current investments to make sure that they are reflective of your financial values.  Not only can this improve your portfolio performance, but it can also help a great deal in reducing the anxiety and stress levels many feel when it comes to managing their investments.

Don’t underestimate the importance of self-discovery in every aspect of your life, including how you handle your business.  Finding the investment approach that works hand in hand with your investment personality is the first step to ultimate success – whatever success means to you.

thumbnail image © Stephen Coburn | Dreamstime.com

Chellie Mejia is a freelance writer, real estate developer and lifestyle coach. Follow Chellie on Twitter @chelliemejia. Visit her brand new website www.chelliemejia.com

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