3 Tips to Set Yourself Up for Direct-Investing Success

Today, with the help of online investment tools, it's easier than ever to take control of your investments. Each of us has goals and plans for the future. They could include anything from taking a big trip to buying a home. Whatever your dream may be, there's a good chance it comes with a price tag. Making informed investment decisions is a key factor in reaching our goals. Here's how to set yourself up for success.

1. Identify your goals and make a plan.

Investing and travelling have a lot in common. Whatever your dream vacation looks like - hiking to Machu Picchu, lounging poolside in South Beach or gallery hopping in New York City - it needs two things: a goal and a plan. Maybe your dream is to buy a home, start a family or start a business. To reach that goal, you'll need a plan of action. Each of us wants different things from travel - and from investing. Where you go and how you get there are entirely up to you. Online investing makes it easy to access a wide range of investment options and tools - whatever your investing style.

2. Use a practice account to gain confidence.

The best way to discover what kind of traveller you are is by travelling. And before you set sail on a solo voyage across the ocean, it's a good idea to test the waters with a shorter practice trip. The same is true for investing. Using a practice account is one of the best ways to build your confidence. You can take as much time as you need to learn how to use the online investment tools. You invest with "practice money," so there's absolutely no risk. The more you practice, the better you'll understand your investing style and comfort zone as a self-directed investor.

3. Increase your financial literacy.

Just as travel can enrich our lives, self-directed investing is an opportunity for lifelong learning. Investor education falls into two areas: extrinsic and intrinsic. Extrinsic investing skills focus on the technical aspects of being an investor. These include personal finance, researching stocks, asset allocation, using tools, choosing trading strategies, tax-efficient investing, and portfolio balancing.It's also important to complement this technical know-how with intrinsic investing skills. These skills focus on the behavioural aspects of investing and include understanding investor psychology and temperament, as well as our personal values and goals.

There's a lot to learn! Fortunately, self-directed investors have access to online tools, webinars, tutorials and videos to continuously expand their financial expertise.

There are no guarantees in travel or investing, but the better prepared you are, the more likely it is that you'll reach your desired destination!