Direct you own investments

That was the message that City Times columnist Robby P shared at an investment seminar at Cherrylane Gourmet Café, on November 2.

He was speaking on “do it yourself” (DIY) investing.

Robby P shared the following benefits of DIY investing:

• Learn to take control of your own wealth.

“Having control of your own portfolio is by far the most important benefit, because nobody will pay more attention to your portfolio than you,” he said.

“Having control and being able to view your own portfolio helps you identify sooner, which stocks are performing and which are not giving you the freedom, to act accordingly.

“You are able decide for yourself how passive or aggressive you want to be.”

• It’s cheaper.

“Managing your own trading account, means you don’t pay ‘advice’, ‘management’ or ‘performance’ fees or any other clever ‘made-up’ fees,” Robby P said.

“You should only pay a standard transaction fee and a little bit of admin.

“Trading your own account should mean your are charged a lower rate.”

• Your broker becomes your partner.

It is in no broker’s best interest that you lose money – they earn commission after all, he said.

“Brokers have become more competitive, thus costs have dropped.

“You should get full access to a broker who is there to offer advice, experience and research so that you are able to make an informed decision.

“You don’t have to know it all when you have a ‘business partner’ who knows the game.”

• Everything you need already exists and it’s free.

He said financial markets have become accessible on a global scale and access to market moving information is almost instant.

Trading platforms have improved and become cheaper – if not free.

“Information flow between good brokers and clients has become seamless and yes … free,” he said.

“A good broker should also provide free training and seminars to their clients.

“You can do it from anywhere.”

• It’s not rocket science

“The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing,” Robby P said. “Just imagine how difficult it would be to sell shares, if you had to call around the neighbourhood trying to find a buyer.

“A stock market is nothing more than a super-sophisticated farmers’ market, linking buyers and sellers.”