Becoming an investor is not as easy as it appears on the surface. As a new investor, you get to experience firsthand all the anxieties, stress, and confusion of starting something new as opposed to the beautiful success stories you hear.
The first step toward overcoming these obstacles is identifying them and taking preventive measures to keep them from becoming major issues. This is why we asked an investment expert, Ryan Hoggan, to summarize some of the most common challenges faced by new investors and offer potential solutions for overcoming them.
Ryan Hoggan is a successful real estate and NFT investor who has mastered the art of investing over the past twenty years. Read on to know these obstacles and how you can overcome them.
New investors are often faced with a series of hurdles to cross. What are the common challenges that new investors are likely to encounter on their pathway to success?
Like every other profitmaking activity, investing comes with various challenges, especially for people who are new to the field. A few years ago, I moved into real estate investment, and like every other person, I encountered some challenges.
Firstly, every new investor faces inexperience and lack of knowledge as a challenge when moving into a new business sphere. Financial constraints come close as another major hurdle to cross. Also, we simply give up too soon when the desired results are not forthcoming.
What strategies can a new investor use to overcome these barriers?
I reckon that the barriers are all valid concerns, however, they are not insurmountable. Here’s how you can overcome the roadblocks.
- Get a basic knowledge of the field of interest when you are about to start. You can learn more as you go.
- Realize that it takes time to learn and gain enough expertise to succeed. This will help boost your consistency.
- Get investment and financial advice from experts you can trust in the field.
- It is okay to be nervous and uncertain but do not dwell on uncertainty: take a step.
- Have an investment plan before venturing into any investment.
Do you think an investor can avoid these obstacles just by having an investment plan from the start?
Having an investment plan before venturing into the market is greatly advised, but it does not automatically prevent these challenges from coming up along the way. Although it will prepare you for some of the obstacles that may come your way and prepare you for the way out.
Risk management is one of the most important skills that can make or mar an investor. Can you share with us some of the top risk management strategies that new investors can employ?
Taking risks is a crucial investment aspect, but you need to tread carefully. I will recommend these simple techniques.
- Avoid participating in activities that could harm your investment.
- Diversify your portfolio by investing across different platforms.
- Use loss prevention and reduction to minimize risks that cannot be eliminated.
Will you recommend using digital tools as a viable solution for budding investors in scaling some of these obstacles?
Absolutely. There is a pool of investment apps and other tools to make investment way easier for newbies in this digital age.
However, choosing the right investment app is very important. Still highlighting digital relevance in the current time, I’ll advise that new investors should venture into NFTs as it has fewer obstacles and would have very good prospects in the nearest future. You just have to find the best NFT artists dropping hot projects.