2023 provides the opportunity for a fresh start. What are your investment goals for this year? If you've made a New Year's Resolution about investing more, learning more about certain stocks or sectors, or becoming a better, more dedicated investor, this is for you. Even though the newness of the year has faded, and many have settled back into their typical routines, that doesn't mean you should forget about your resolution just yet.
It's Not too Late to Start
Many people tend to give up on their resolution after the first several weeks of the new year—but it's never too late to start working on it. Even making just a little bit of progress toward your goal should be considered a success. You may think that when March comes around, the time has come and gone to get your resolution rolling—yet this couldn't be further from the truth. No matter how late into the year you choose to start, it's better than not starting at all!
Begin by setting realistic goals—by setting smaller, more achievable goals, you can better focus on what you are able to do versus what will likely be an impossible challenge. A recent study suggests that nearly two-thirds of people who make New Year's resolutions set goals that are not specific enough to be accomplished and are more likely to give up relatively quickly. How can you refrain from having a vague investment-related resolution?
One Step at Time
Let's say you're a beginner, and don't know much about investing or how to get started. If you made your resolution something like "start investing" this wouldn't provide you with a great jumping-off point for your new trading journey. While your overall goal can be to start investing, it may be a good idea to set smaller milestones to get you going. For example, you could decide you want to spend three hours a week learning about different aspects of investing for a month. Then, when you feel comfortable with the basics, you can hone down on what you find most interesting and continue to learn about a few more specific topics. Once you're ready, you can take the next step and begin to plan an investment strategy, and practice with paper trading before investing with your real money. Eventually, you'll work your way up to placing a trade, and officially fulfill your resolution. Don't forget to evaluate your risk tolerance before making your first investment!
Taking these smaller steps to accomplishing your goal can set you up for success. Even though doing one small thing may not seem like much, they will lead you to the end result in a more efficient, organized, and thoughtful way. Even if you aren't a first-time investor, using this strategy can still help you become a better investor. Instead of trying to accomplish a huge task all at once, break it down and allow yourself the time to perfect your journey. By doing so, you become much more likely to stick to your resolution.
This can also help you keep your resolution practical. Telling yourself you're going to make more profit from your investments in the new year is easier said than done. It doesn't take much to get off track, and you might become disappointed and lose motivation when your strategy doesn't work out. Try setting a resolution that is specific to your needs and is more obtainable. What steps can you take to increase your profits that feel doable for you? This could be changing your strategy, adding more investment products to your portfolio, or changing the way you allocate your funds for trading. Although, it's crucial to keep in mind that profit is never guaranteed, and all investments come with risk.
Don't Give Up
The bottom line is that you should always set your sights on an achievable goal when making a new year's resolution and remember that there's no such thing as starting too late. Even if you start right now, you'll accomplish your investment objective 100% sooner than if you choose to give up. Think strategically, plan accordingly, and invest with purpose. Soon enough, you'll have your 2023 resolution completed and begin to think about what your resolution should be for 2024!
Disclaimer: Securities trading is offered to self-directed customers by Webull Financial LLC, member SIPC, FINRA. All investments involve risk, including the possible loss of principal. You should consider your investment objectives carefully before investing. This is not a recommendation, investment advice, or a solicitation for the purchase or sale of a security. Additional info: webull.com/policy