How to be a Do-It-Yourself Investor?

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Many people wish to be a Do yourself investor but as investing involves money and no one wants to take the risk on their hard-earned money, Do- It- Yourself investing need some learning.  It’s fun and challenging too. In this article, we will discuss the Do-it-yourself investing techniques.

Reasons for being a Do- it- Yourself investor

There are 3 main reasons why people want to become a do -it- yourself investors:

  1. It’s Fun

It’s fun to learn new things and Do –It yourself investment needs your attention and time. If you are willing to learn, you can be a good Do it Yourself investor.

  • They get control over their investments

Many people have zero tolerance if anyone screws up their stuff. No adviser can care for your hard-earned money as you do. So if you want to eliminate the risk of getting ripped off by an adviser, learn Do-It-Yourself investing.

  • They can save money

This is one of the most important reasons why you should learn Do-It-Yourself Investing. Financial advisors charge high fees. Isn’t it silly to do all your stuff yourself, save money and then hire an expensive advisor to manage this money? Better to learn the Do-It-Yourself Investing and save huge fees you are paying to advisors.

Some important tips to be a Do-It-Yourself investor

There are some important things that you need to learn if you want to be a Do-It-Yourself investor.

  • There are some financial terminologies that you must learn.
  • Learn about your retirement accounts. Read the document and all the investing options and fees. Read the mutual fund documents and compare one with another.
  • You have the learn about tax law and investing but only the portion which applies to you. Read online about them, gradually you will understand everything.
  • You also must learn the market history. Many times market goes down and investors start worrying a lot. But reading the market history will help you ignore such downfalls of the market.

Investing in risk components

Many times people worry if they will invest in risky options, they will have a loss. The risky investment gives you more return. If you think to escape the risk, you will have a very little amount of return. Stocks and real estate are risky investments but they give you good returns than CDs and Bonds. Taking risk is worth and for playing safe you need to learn about it. There are 2 components of risks: Shallow Risk and Deep risk.


Shallow risk is simply volatility in your investment account now and then. This is not a big concern and relatively insignificant in the long run while the deep risk is when your investment value falls down and never rises. It can be due to inflation, destruction, or any other issue.

Set Goals

You must have a Goal before you invest. You must be clear about what reason you want to invest. You must calculate your income and find out how much you can invest and how much you need to meet your goal.


Choose the plan

Now, you have the Goal, you have the income calculations. It’s time to choose which plan suits you. Go through various plans available and find the best one for yourself.

Maintain the Plan

Now, you have chosen the plan and invested, you have to maintain and keep an eye on your investment.


Investment is risky but not rocket science. You can be a Do-It-Yourself investor by following simple steps and being extra vigilant.


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