Course Description - CFP Board Course #265179
Despite a myriad of technological advances in both analytics and trading methodologies over the years, there’s one thing that has not changed or will not change over the course of investing history – human emotions. Investors’ reactions to monetary occurrences, and their thinking when it comes to making equity purchase or sale decisions, has remained static. Whether it’s the desire to stretch an investment holding to a year for more favorable tax rate treatment, to retain shares purely for their seemingly attractive dividend yield, to refuse to sell a holding at a seemingly large loss, to maintain a position simply because it’s been a long-time family holding, to buy shares according to their price instead of their potential, to “dollar cost average”, or a host of other reasons that are as old as investing itself, human emotions and investing decisions are inextricably linked. Therefore, they must be addressed as one. Success in the stock market does not require prerequisites like an advanced degree or a Mensa-like IQ. It does, however, require creating an investment discipline – from scratch. Flexibly, humility, respect for the stock market’s verdict, and knowing one’s monetary self will serve you far better than rigidity, egoism, and expecting the market to follow a specific script. This course will alert the audience to investment thinking which, especially in a primary bear market, can take a toll on one’s portfolio – and not just in the financial sense. Monetary issues affect the family unit as well, making it imperative that investors have a check list to monitor before they enter the arena of financial gladiators – the stock market. This course will provide a list of some of the most common investment misconceptions which should flash like a neon light in investors’ minds, and most importantly address what should be front and center in one’s investment thinking – risk management.
Learning Objectives
Identify potential red flags that can heighten investing risks,
Enhance your capital preservation strategy for investing,
Create an investment checklist
Understand the relationship between the monetary and psychological aspects of investing,
Review the attributes which have the potential to both enhance and hurt your investing performance,
Review risk management techniques; investment rules for an investment lifetime.
Primary Principle Knowledge Topic: Investment Planning
Complexity: Intermediate
Instructor: Marguerita Cheng, CFP®
NEXT DATE
To be determined
Location
Online