There has rarely been a better time to grow an investment business than right now. As CNBC finance outlines, retail trading has never been at a higher level, with retail trades rising 55% on the previous year.
Taking Your Investment Firm to New Heights Through Retail Trends
While investment firms will hope one day to rise past the levels of retail trading and instead be seen as institutional, in the formative days of a business, looking to consumer trends can be powerful. Indeed, looking to strategies honed for low volume can be a great way to start building growth.
The wisdom that having a consistent stock strategy is important to consistent gains is not controversial, and neither is it received wisdom. Studies have shown how a consistent strategy, designed to avoid over-diversification, will raise ROIs by up to 12% year on year against peers.
Selecting a good strategy and sticking to it is key. For a new investor, this is difficult territory – finding a winning strategy, and one that gives above-average returns can be like finding a needle in a haystack.
One way to go about it is through networking. Looking for third-party investment strategies and research services that have a proven track record in the past can boost you on your way to success and further growth.
A strategy in hand, diversification is your next target. Diversification is both a way of growing your business and a way to protect your investments – as US News Money Report outlines, diversified stocks will protect against risk and volatility across your entire portfolio.
The growth factor is more pronounced, however. Diversification is important in all business types; finding new revenue streams and ways in which to improve the business helps to protect and to build connections in and out of the industry.
The key factor in achieving this is expertise – a business, investment included, should not diversify unless it has conducted thorough market research in the area.
In order to have that expertise, businesses must look to network and connect with success stories from across the industry. This education is absolutely crucial to avoiding common pitfalls.
The best advice is often sourced from industry insiders and proven traders; tips and strategies obtained as the ‘next big thing’ from the web can be a pitfall.
While the internet is a great resource for establishing principles and learning time-honored investment strategies, a more nuanced strategy of looking to use connections and partners within the industry, and seeing where their trends are pushing them, is a better call.
Following trends in this manner, and looking for new opportunities, is a safe way to grow your investment portfolio or wider business.
In many ways, the key to growth in the investment industry is knowledge. Being able to confidently pick new stock options and grow your business through them is a matter of applying your skills.
Using wise heads within the industry to help with that is an important way to continue developing.