How to Become a Savvy Investor in 2024
Published: 2024-02-03 13:43:38

The stock market is a daunting place for a first-time investor. 

The systems that have been set up over the last few decades haven’t exactly made it easy for newbies to find their footing, especially when asset managers and stockbrokers focus on the wealthier clients, while ultimately looking to maximize their own good.

If the stock market has always been something you wanted to explore, however, then 2024 might be the perfect time to do it. 

With new AI technology available, anyone with a phone or a laptop can build a portfolio without having to rely on middlemen to navigate their future. As well as this, if you attain the right strategies, you could even call yourself a savvy investor. 

So how can you do this? Well, to help you begin your 2024 investment journey in the best way possible, we’ve laid out five of the key things you need to think about.

##Firstly, Tech is There to Help You

In 2024, AI is fast becoming a crucial tool for making the right decisions. As mentioned before, the process of going through middlemen is a traditional, yet ultimately flawed strategy. 

Over recent years, AI's role in the investment sector has evolved, and FINQ is redefining this landscape by [utilizing AI and data for smart investing](https://blog.finqai.com/articles/investing-101-ai-data-smart-decision-making). Beyond just another fintech tool, FINQ is transforming financial solutions with clarity and precision. In a world of complex and often disjointed financial data, FINQ harnesses AI to effectively structure and interpret vast data sets. This process equips all investors, from beginners to veterans, with refined insights and strategies, enabling them to make well-informed, timely, and impactful financial decisions.

##Diversification is Key

Through utilizing this AI technology, you can begin to build a portfolio that works for you. But the work doesn’t stop there. Even with enhanced investment tools, it’s important that you ensure your portfolio is diversified, and you have mitigated risk. 

Different asset classes and types perform differently depending on the market conditions, so you need to ensure that your portfolio is varied to take advantage of stem low-performing assets in times of uncertainty.

##Set Realistic Goals

Every investor has a reason for investing, so if you want to make savvy decisions, you need to visualize yours. Investment goals are some of the most important factors in a financial plan, as they give you a specific route to work toward while also keeping you motivated.

Being able to measure your progress over time is also crucial, as it can help you stay on track and realize what strategies you need to opt for next.

##Understand the Risk

Although the AI tools discussed earlier can analyze the risk, it’s still important for you to analyze it yourself and understand what it will mean for you if things don't go your way. 

Being complacent is one of the worst things you can do in the stock market, so you need to know exactly what you’re investing in and what the risks mean for you as an individual.

##Get to Know the Market Yourself

In the same vein, before you begin your investment journey, you need to get to know the market yourself. Once again, AI is powerful enough to analyze all the biggest data that you cannot, but you can still look at the overall market and financial landscape.

Make sure to formulate your own opinions about the current market – where it might swing or where it might remain static – and base your decisions both on AI and your own perception.