Whether novice or expert investor, it behooves you to seek coaching. Why you might ask? No matter how well trained a person is, it is virtually impossible to sustain high-level performance without continuously receiving constructive feedback from a coach X.
What is coaching exactly?
Coaching can be thought of as a series of conversations wherein one person, the coach, instructs, counsels, and tutors another in how to improve his or her performance X. In business, coaching not only benefits the one being coached, but also the organization. As Harvard Business Review asserts, organizations are not only successful because of extremely talented people. They also need solid players, who may not be stars, and need a coach’s help to build skills and deal with the changing realities of their marketplace X.
Specific to investment, coaching, as defined above, equips investors with the tools to protect themselves against fraud, among other abuses, and to assess risks X, by providing comprehensible explanations of products and practices—enabling them to evaluate investment decisions X. Furthermore investment coaching saves you time and money by helping you avoid the many dangerous pitfalls and dead-end paths—accelerating your wealth building by taking the most efficient, effective actions X. With a match to the appropriate coach, an investor is extended investment experience beyond their years, insights beyond their knowledge, and wisdom beyond their maturity X.
Without coaching, many investors, experienced and inexperienced alike, take steps that will look like mistakes in hindsight X.
One such mistake is confirming our existing beliefs, or confirmation bias, which our brains are wired to seek. This problem is exacerbated by the echo chambers of social and news media. According to Visual Capitalist, a solution is to welcome opinions that contradict your own, by soliciting and considering the advice of those who may think differently X. A coach would be a great person to engage in this exercise.
Investors are particularly susceptible to bad decisions when the market jitters—selling everything, panicking, doing too much, and obsessing over the numbers X. While a coach can’t control the outcome of the market, they can help the investor respond better. This is because coaching not only improves skills and performance, but also aids in the development of a strong character and the gaining of confidence X. Having a strong character and confidence are conducive to effective investment management in a Market Downturn.
Why don’t we see more coaching?
Although highly beneficial, coaching faces the stigma of being associated with underperformers. However, coaching yields high returns, even for those at peak performance. Consider for example, coaches of Olympic athletes, who provide feedback regardless of how well the athlete performs X. Coaching is also compartmentalized in the minds of many as an exclusively sports related activity—an automatic association that does not hold as many professions have coaches and many folks with successful careers were coached X.
If you are an investor who either does not know where to begin or have not made as much progress with your portfolio as you would like, it may be time to get yourself an investment coach. They teach and engage with you on how to make more educated and ultimately more successful investing decisions, and render you to achieve some level of financial security with confidence X.