Tactical investing for women plays a critical part of beginning and indeed building a diverse portfolio that pays. But how can you get started and what do you need to know? From why you must invest as a woman, to tips for beginners, here are some suggestions to get you started.
Research is Everything
Due diligence is a major part of investment. If you are wrong about even a tiny part of an asset you are considering, it can be financially catastrophic. However, encouraging more women to invest is good for any market as it means more capital. To ensure you have the best chance of returns, research is everything. For example, when considering investment in metals. Always use all available materials.
Why Tactical Investing for Women is Necessary
Women have historically been downtrodden when it comes to money and finances. Male partners, such as husbands, often control household funds. In fact, even today, a survey by YouGov found that 29% of women are at least partially dependent on their partners.
1. Adapting to life stages
Straightforward work isn’t always kind to women, as they face life stages such as maternity and divorce. Investing wisely can put women on an equal and safer footing through these life stages.
2. Further financial education
There is always empowerment through education, none more so than with finances. Women can become more confident with money by making smart moves, and understand the markets.
3. Using your female strengths
There are some traits in women that differentiate them from men. One of the most powerful is patience. Long-tem and tactical investment requires this so can play to female strengths.
What Strategies Are Involved?
The strategies for investing are pretty much the same for women as they are for men. However, some of the traits that come with being female, such as patience, make tactical investment a more lucrative approach. There are various strategies you can employ when investing. These include buying assets with upward trends, known as momentum investing. You can also use data to identify assets likely to outperform and use strategies that follow trends across markets.
Starting Your Investment Campaign
There is a lot to consider when investing as a man or a woman. However, as a woman, you might have more to lose considering social status, economic impact and future potential. Like any change, begin with clear goals and objectives, i.e. why you want to invest and what it can offer you. Also learn as much as you can about investing using books and online resources such as Investopedia and even YouTube, and always start with small, affordable investments.
Key Principles of Tactical Investing for Women
Women are investing more than ever. At least in the United States, women account for 40% of angel investors, signaling that change is occurring in the financial markets. However, you have a long way to go before you are there! To help get started, there are some investment apps for beginner investors you can try, and you can remember some of the key principles of investment.
1. Flexible asset management
You can adjust asset allocations based on changes in markets, usually indicated by specific movements. With tactical investment, you can move assets during times of high volatility.
2. Mitigating overall risk
There is always risk when you invest in anything and solid returns aren’t always guaranteed. However, tactical moves can offset losses (hedging) that might occur when assets plummet.
3. Enhanced self-discipline
When making tactical and coordinated moves, you remove the element of emotion to reduce acting on impulse. Impulse buying with assets can lead to catastrophic loss over calculation.
“Be fearful when others are greedy, and greedy when others are fearful” – Warren Buffet.
The Common Risks of Investment
Of course, there are risks involved when investing any kind of funds in any type of asset. Your money is always at risk. However, you can mitigate risks if you understand what they are, where they occur, and how they happen. For instance, the more you trade, the more it will cost in fees, so keep this in mind as part of your investment budget. There is also an element of timing when investing, and misjudging leads to losses, so always use data instead of impulsive emotion.
Female Investment Communities
Like anything, there are online communities for investors and women in particular. The financial sector is pretty much a man’s world, and it can be intimidating for women to get started. However, there are groups and communities you can join that are designed for female investors and entrepreneurs. These include SheWorx, Ladies Get Paid, and Women ’s Investment Network. Links with women in challenging spaces offer support, education, and empowerment.
Tips for Tactical Investing for Women
Tactical investing for women is as challenging as it is exciting. All you really want is good returns, though. An average return rate of 9% is considered excellent, but it varies depending on variables such as the asset, markets, and economic conditions. So, here are some practical starting tips:
- Begin by investing in industries and assets you are familiar with to build confidence.
- Monitor sectors dominated by women, such as Fintech, for female opportunities.
- Use all data available rather than acting upon impulse or following popular trends.
Further Resources That Are Available
Educating yourself about investments is the truest way to position yourself in a good place and minimize the risks and losses. Of course, you also need experience, which is why starting small is recommended as you build out a portfolio. Some recommended books for female investment include “The Women’s Guide to Successful Investing” by Nancy Tengler, “Smart Women Finish Rich” by David Bach, and “Own It: The Power of Women at Work” by Sallie Krawcheck.
Summary
Research is a critical part of tactical investing for women looking to build a diverse portfolio. Of course, there are investment principles such as risk mitigation, asset flexibility and self discipline. It helps to learn more about investment as a woman through online communities and other available resources such as popular books by entrepreneurs such as Sallie Krawcheck.
