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New Investor Index:

I’ve decided to add an innovative element to TMWTFS to help the growing number of readers who visit this site answer their questions on investing fundamentals, where to start their education and where to receive the best unbiased information in order to make informed decisions.

As I explain in my About section of this site I began my DIY journey fairly young and it wasn’t without its numerous up’s and downs. I understand all too well the frequent frustrations and emotions that investors face when considering where they should start and how best to find their way into the markets. The financial services industry certainly doesn’t make a priority of educating clients and when you consider the high fees they charge you can’t blame them for keeping clients in the dark. Add in the sheer amount of information that can be found on the subject of investing and its no wonder than many new investors immediately feel discouraged.

Any new investor should first consider what path they wish to take to become an independent DIY investor based on the benefits to their own unique situation. The most important factor that shouldn’t be overlooked is to not rush the process. There were numerous times over the years when I become frustrated, simply wanted to forget it all and just try my hand at what I knew (or thought I knew) at one time. I wanted to start making money and generating returns just like everyone else was doing. Luckily I didn’t give in to that temptation or the investor I am today might not place such a high emphasis on rational and fundamental investing practices. Time can be a painful reminder, but it also serves as an important teaching tool for your own self interest.

What I mean by that is I can compile all the readings, information, notes and lessons I learnt during the years of my process from new investor to where I stand now, but reading all of that overnight won’t prepare you for the psychological demands that the market places on you in times of volatility, hysteria and chaos. The personal journey for a DIY investor is just as important as the educational journey that you take.

When friends or other individuals ask me for advice on where to start my first reply is always, “Read, read, read and when you think you’ve read it all…find more.”

I’m not lying when I tell them that my first few years of self study were consumed with as much diverse reading material as I could find on the subject of investing. I re-read finance books from business school, nearly all of the get rich gimmicks, books on investing fundamentals and security analysis. Some of them I read twice just to make sure I could wrap my head completely around the main topics they discussed. I read essays on investment returns, studied the biographies of various investors making sure to include each of their biggest wins and losses, read daily national newspapers, columnist views, corporate financial reports and analyst commentaries. Passion and determination were what drove me, but time was what made me a better investor.

Time was responsible for finding a comfort level and developing my individual style using all the lessons I’d learnt from various sources. I’ve certainly benefited from mentorships along the way, but nothing was ever handed to me by any of them and each encouraged me to find my own path and reasoning. When I talk to new investors for the first time I recommend beginning with individual mutual funds before individual equities not because I want them to pay high fees that impact returns, but because it follows a progression of how to best train yourself to one day analyze and invest in stocks. Patience might not come easily to you in investing or other activities, but today I call the entire process, from the starting age of fifteen to finish, my Value Mosaic.

Through this new section I’ll outline resources (my own and others) that I feel serve as important tools for a new investor to learn, interpret and create their own understanding in order to better prepare for creating their own process and mosaic. Content authored by myself and included in this section will now be categorized as Investing 101.

I welcome readers to visit and share the New Investor Index tab located on the top navigation bar of the site and please feel free to send me resources that you use(d) to become a better investor.

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