Finance 01 June 2020
Studies show that women make better investors than men. Women are less likely to take big risks, and this results in higher investment returns compared to their male counterparts.
While this is true, the same studies have found that being risk-averse is a double-edged sword for female investors. Many don't even invest at all, and choose to put their money in savings accounts. However, it's important to remember that achieving true financial success and equality is challenging without an investment portfolio. Start getting comfortable with the fact that investing is never predictable. But while risk is unavoidable, there are ways to reduce and manage it:
Assess your risk tolerance
Risk tolerance is the level of loss you're prepared to take within your investment portfolio. Factors like personal goals, capital, timelines, and even age all play a role. Not knowing your risk tolerance might result in financial moves that are too risky or not risky enough. It all boils down to three basic categories: conservative, moderate, or aggressive — all of which are influenced by time.
Generally, short-term investors need to be more conservative, especially when navigating the short-term volatility of the stock market. Long-term investors can benefit from being aggressive, while mid- to long-term investors can vary from conservative to aggressive strategies. But these are just general rules of thumb. Risk assessment questionnaires can be helpful tools, but they can also be generic. If you aren't sure, it's best to consult with a financial advisor when assessing your risk tolerance.
Diversify your portfolio
Stock market expert Laoise Leahy previously highlighted diversification as one great way to limit your risk exposure. Stocks, forex, bonds, real estate, or any other investment instrument won't react similarly to market changes.
For example, having investments in the tourism industry during a pandemic is not a good idea. But say you've also invested in telehealth services. This means that you won't be losing all of your investments in 'one basket'. Diversifying doesn't just mean investing in different stocks — it's also wise to spread your capital across different industries and different instruments.
Stay updated with trends and current events
One of the reasons why women tend to outperform men in investments is meticulousness, especially when it comes to doing prior research. Make sure to apply the same diligence once you've already invested in a particular instrument.
This is especially crucial in volatile markets, like forex. To help you keep track of market changes, you can make use of forex trading alerts, which are a great source of relevant economic data. Factors like employment, inflation rates, and political statements influence forex markets. Economic calendars are also useful tools for stock and cryptocurrency traders. They highlight specific events, such as policy changes, and the impact they're expected to have on the market. Keeping up to date with current events and trends can help you make timely and well-informed decisions — thereby lowering your risk.
Don't let emotions take over
Investing is very strategic and methodical, but it can also be a somewhat emotional process. Fear, excitement, or overconfidence can lead to poor decisions like panic selling after one stock market hit.
Luckily, there are ways to overcome emotional trading and avoid being driven by personal feelings. It is important to treat it as a business that requires a detailed plan. Set goals, assess your risk tolerance, stay updated, and have an exit strategy at the ready. This mindset can also apply to different investment instruments. By practicing patience and self-discipline, you can remain strategic and make level-headed decisions. All of these will lead to lower risk, higher profitability, and greater financial success.
Whether it's your child or your brand, there is nothing quite like the excitement you get when you see the fruits of your efforts grow. In the face of aversion, you must remain cool-minded and adaptable to remain effective. This can be quite stressful, and every minute counts. Alone, the responsibility can be overwhelming - wouldn't it be nice if things just ran themselves sometimes? Especially those things that we do mindlessly all the time, and seem to take up most of our time?
When you start a business, you soon come to realize that in order to grow your brand, you need to be extremely organized. And to be efficiently organized, it is imperative that you master the art of managing your time. The saying 'time is money' rings true when it comes to growth. This is why we're going to provide you with helpful tips that will allow you to save time so you can focus on growing your brand.
Use the Right Tools
Technology has changed the way we conduct our business with each other. Today, more than ever before, we have access to data which gives us clearer insight and vision, as well as better tools for productivity. However, as we all know, this is all conditional to your intent. As much as a smartphone can be a tool for productivity, it can also be a fantastic source of distraction and procrastination, which is directly detrimental to said productivity. Automation is an advantage that is available to almost everyone today when it would have been unthinkable just a generation ago.
When a brand is still young, the team is still close-knit and there isn't too much coordination necessary when it comes to keeping up to date and on top of work. Chat groups and video calls can do, as well as simple task-managing apps. But as you grow, your workflow becomes more complex and the volume of data generated by your company will very quickly become a logistical nightmare.
Telltale signs of data overwhelming are endless excel sheets, frantic Post-it notes all around the (real or digital) office, and relying on the consumer rather than business-oriented data storage and communications solutions. These have their limits, and investing in a holistic company-wide system will not be a waste.
Work More Effectively
Your workflow can be simplified into smaller tasks which follow each other in a sequence, which can have conditional elements to it. That's where automation comes in. If you can draw it in a flowchart, you can automate it. Tasks that would have taken days can be outsourced to a machine that will not only perform but also learn in the process.
There is now a myriad of online services for freelancers which essentially give them the productivity potential of a small firm. We're now at the point where bots at https://www.hellobonsai.com/contract-templates can generate custom templates for the documents your brand needs, replacing the need for a legal consultant to intervene. You just need to know what you want to automate, and what you want to make out of it. If you create a logical process from the inception of your brand, then the automation will be seamless, as all you will need to do is add more tasks.
Be Mobile and Flexible
Most of your coworkers and clients will probably already have a smartphone, or will soon. It is also very likely that beyond using these for leisure and social activities, they use them for work. It is now normal to switch off the heating in that apartment you've been renting out while you are on holiday because your AirBNB tenants are overusing it. Or to track the status of your latest food delivery while you are sitting on the toilet.
Consumers today are not only constantly on the move, but they are also increasingly data-focused. They will be looking for results and have the capabilities they need to research, analyze, and calculate what they deem necessary to ensure they will be making the right decision. They thus also expect the same in return, in the form of bespoke customer service that is both intelligent and responsive.
Data is everywhere and is relatively easy to obtain. In a single click, you can generate a web analysis that will reveal more information about your blog or website than your doctor will ever tell you about your own body. Before diving into this ocean of data, take time to identify what is really important to you. Brainstorming is a great tool to really identify and prioritize what you and your team should be focusing on first. If you try to wage war on all fronts, then the chances of winning are slim.
With the right tools and the right method, you can save yourself quite a considerable amount of time. With both the agility and flexibility that data managing and automation software brings to the table, you will see an increase in your productivity. Careful planning is key, and if you focus on streamlining your workflow, you will be able to take your brand to the next level.