The first decision you must make regarding your portfolio is who will manage it. Do you ask a friend or co-worker for help? Do you watch a financial network for tips? Do you hire someone to do it for you? Or, do you do it yourself? Before you make that decision, review what it takes to become a successful investor.

Time – It takes a lot of time to manage your own account. Besides taking the time to actually make transactions, you should spend innumerable hours researching the countless possible investment options.

Knowledge – When you buy a stock, you are buying a business. To determine whether a business is well run, you must have the financial and accounting knowledge to understand their financial statements.

Experience – There are certain skills that come only with experience. The market often repeats itself. Only experience teaches you to understand market behavior so that you are not the one buying at the highs and selling at the lows.

Emotions – Individual investors have long underperformed the market averages. The reason is that they often let their emotions determine their investment behavior. How often have you wanted to sell everything and put it in cash during a market downturn, intending to put it back in the market after it has recovered—but at a higher price? To be successful, you must stick to a sound strategy and have the courage to make tough decisions when every media outlet around is selling the most recent trend.

At Provident Financial Advisors, we have taken the time necessary to excel in each of these areas so you can have the peace of mind that comes from knowing your money is in good hands.

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