Engineers, do they make good investors?! 🤔
Saying “No” to traditional engineering meetups, ‘How to Invest In the Share Market’ was organized by IEEE Young Professionals Sri Lanka Affinity Group for students and young professionals as the second episode of their ‘LETs Talk’ series under the theme ‘Road to Success’.
The event was held on March 27 at the Colombo Stock Exchange Auditorium with the participation of 60+ individuals of different technical backgrounds.
There were two sessions that covered the following topics: About Colombo Stock Exchange, Difference between Investments and Savings, How Companies Raise Capital, Difference between Primary and Secondary Markets, Pricing Mechanisms, Types of Securities, Risk and Return, Benefits of Investing in Shares, Performance Indicators, Do’s and Don’ts in Investing and Trading, About Broking Firms – to name a few.
Four takeaways from ‘LETs Talk #2: How to Invest in the Share Market’ are:
Keep buying whenever market falls ✌
Research, Be Educated and Stay Informed
To become a successful investor, you need to have the desire to find relevant data. You need to be endlessly curious, read the news and magazines religiously, consult professional advisors and attend relevant seminars whenever possible.
By educating yourself by book and by experience, you can have a good financial knowledge, whereas having a thorough financial knowledge will support in investing.
On a side note, Colombo Stock Exchange conducts free seminars every month to educate on stocks and investing. Your local stock exchange would probably also conduct these kinds of programs; Research and find about them.
Stock Market Is Unpredictable, Have an Exit Strategy
Knowing your exit strategy is a fundamental in investing as tomorrow’s stock market is unpredictable. A good investor knows when to enter and when to exist.
Stick to an Investment Strategy, Be Focussed
It is important for you to have a clear understanding of why are you investing and what you expect from investing. So, have a well defined investing strategy and execute it. Long-term investment strategies are considered to be less risky.
There are investors who invest for short-term and still succeed, but such investments are riskier.
Have Control over Greed and Fear
Greed might lead to losses, so investors should strive to make their choices without allowing greed or fear to guide them. A successful investor will not be afraid of loses or be discouraged by them. Rather, they will learn from their mistakes and move forward.
Do You Think Techies Would Be Able to Handle It?
Based on the above-mentioned qualities of successful investors, I think engineers would be great at it. They are always on top of the latest trends (in technology, but this curiosity could extend to other topics); They are analytical which would allow them to identify patterns in trade; They are well versed in theories of probability and stats which play an important role in identifying lucrative stocks.
Sounds like people designed for the job. What do you think?
Article by Dinuka Tharangi Jayaweera, Editor-In-Chief, IMPACT by IEEE Young Professionals