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The Power is in Your Hands: Why DIY Investing is the Smart way to go

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More people are taking control of their money by DIY-ing their stock market investments. Startup Stock Photos/PEXELS

Imagine yourself on your couch, playing an exhilarating round of F1 2019 on your Playstation 4. Your blood is pumping and adrenaline is rushing as you maneuver your vehicle closer to the finish line. About three other players are trying to edge you out but you maintain your groove. You can already taste your victory when all of sudden, your older brother yanks the controller from your hands, saying that he can easily win the race for you, and ruins your game in one fell sweep.

Frustrating may very well be an understatement in this case. You were doing it. You were winning. You were sure that you could beat your opponents all by yourself when somebody just had to disregard your efforts and tell you they can do a better job.

And that, friends, is why doing things yourself may be the smartest way to go. Sure, maybe not with everything, but when it's something that truly matters to you, calling the shots can be truly gratifying.

The perks of guided DIY stock market investing

As a startup investor, nothing sounds equally daunting and rewarding than making a foray into stock market investments. Unlike putting your money in a savings account or purchasing several bonds or mutual funds, investing in the stock market is like taking the training wheels off your bike and praying to high heavens that you keep your balance.

With today's dynamic technology, almost anything- even stock market investing- can be done by way of thorough research and due diligence. But while the World Wide Web has been quite generous with information, some websites, especially those affiliated with providing financial advisory services, understandably tend to withhold details that can help complete the whole investment picture.

Thankfully, there are quite a lot of mobile applications and Robo-advisors nowadays that help provide the missing pieces by imparting useful tips and tricks on how to invest in the stock market to help beginners navigate the ins and outs of stock market trading. As American mutual fund manager and investor Peter Lynch said, "Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research."

Toying with the idea of embarking on DIY stock market investing? Let us share with you some of its benefits to help you to make informed decisions.

Making your money work for you

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Fintech investment apps seek to empower DIY investors to make smart investment choices. PIXABAY/PEXELS

Investing made simple

With DIY stock market investing, you call the shots and reap the rewards 100%, in the same way, that you alone will shoulder whatever losses you incur. Having said that, stock market investing can be done either by leveraging on daily bourse reports and SEC transcripts or by gut feeling or intuition gleaned from pattern recognition. It's your money that you are investing anyway so educated guesses are well within your right as an investor.

DIY investors can utilize the search engine application of fintech investment apps to obtain up-to-date stock market updates and SEC filings and analyses to help them complement their gut feel with sound data.

Trimming the fat

Obtaining the services of legitimate financial advisors do not come cheap. They charge a steep management expense ratio or service fee of 2.5% compared to the .20% average of investing in exchange-traded funds (ETFs). Sure, they may be worth the investment but when you think about it, you could have invested the amount you pay them into other equally lucrative investments.

Besides, financial advisors are normally affiliated with an advisory firm that offers their own vetted portfolio of investment opportunities. As such, a DIY investor has more leeway in selecting the products they can purchase, be it bonds, guaranteed investment certificates (GICs), or even stock futures, compared to an investor that works with a conservative financial advisor.

Most importantly, DIY investors can instead use fintech investment apps, which can allow you to track your portfolios and P&L reports on your own. This helps to conduct and manage their investments and do away with miscellaneous fees or hidden charges such as commissions from a financial advisor's sale of recommended products like annuities and mutual funds, which could be as much as 5%.

Working with your risk tolerance

DIY investing allows you to take calculated risks so that you can make your investments as profitable as possible. Financial advisors will ask you about the level of risk you would be comfortable with, and advise you to diversify your investments so that you will have eggs in different baskets working for you- and that's perfectly fine.

However, DIY investing allows for more aggressive yet risk-controlled exposure and management while working with your personal investment objectives and prescribed asset allocation.

There are fintech investment apps that provide a platform for DIY investors to conduct their own simple financial projections, based on pre-existing data they can tweak from time to time depending on stock market developments.

As with everything, there are also downsides to DIY stock market investing. It can be time-consuming, especially for the investing newbie that will try to get his head around the complexities of the equities market.

Nonetheless, true learning can only come from getting your feet wet and just doing what you set out to do in the first place, which is to understand how you can make your money work for you, on your own terms.

If you have decided to take the plunge and say yes to DIY stock market investing, we recommend downloading this free fintech investment app, and sharpening your investment saw with the wealth of stock market insights that it offers.

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