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6 Different Ways to Start the Day If You Are Managing Investments

How often do you get to the office, and start looking through all data and news on the global financial market?  How often would monitoring every morning gives you a better investment return on the portfolio you are managing or the trades that you made?

We look at 6 different ways to start the day if you are managing investments:


#1 Go for a Morning Coffee or Breakfast

Market Intelligence

Contrary to what many do the first thing they get to the office and start tracking & reading 10 – 30 financial news feeds, you might want to go for a coffee or breakfast.

Being the first or most knowledgable about what happen might give you no advantage.

Everyday, there are so many investment professionals already monitoring the financial market in the morning, and few actually do anything, you likely won’t be taking any actions too. (Unless you are in the dealing desk, interbank trader.  Or you might just be trading against one another)

” you might just be trading against one another “

Rather than wasting your time just to be in touch with the market, spending your time enjoying the fresh air or catching up with a fellow investment manager might just give you new insights.

Why you won’t missed out much in he morning action:

  • How many days do you actually take action between 9am to 11am?
  • How often did something happen, and you actually did something other than updating, and talking about it?
  • How much profit or revenue do you generate while spending so much time every morning in 252 trading years?
  • Which are the days that contribute to actual trades, and actual returns?
  • How many times, you wished you weren’t in the office to put in the trades?
  • Is your portfolio returns +1 % better because of your morning trades?

The NYSE and NASDAQ average about 252 trading days a year

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#2 Check Out Other Desks, Investment Units

Credit Ratings

If you are managing equities, instead of monitoring equities, you might want to eavesdrop on the conversation on fixed income, foreign exchange, interest rates, dealing desk, hedge funds or private equity.

Other than gaining more knowledge or gathering market intelligence, you might discover something might be right or wrong with their methods or discussions, or why you might be right or wrong with your intended investment strategy.

Too often, getting caught up by what you think you are good at, causes you to ignore problems or opportunities arising at another desk and asset class.  Who knows a differing investment strategy, might gives you more confidence that they are wrong and you are right (Only time tells).

 

#3 Don’t Think Differently.  Just Forget Everything

Finance Graduates

Ever believe that the same school gives you the same school of thought?

With so many investment managers learning from the same programs and building up the same foundation, it is no surprise why estimates and forecasts are always within an expected standard deviation.

It is not hard to be different.  But would your portfolio end up at the top of the ranking table, or the bottom at next year?

 

#4 You Don’t Need More Information.  You Need to Know What You are Doing

Investment Going Down

Spending time doing things differently, and stop looking at endless financial information might just give you the edge in looking at global investments and economics differently.

What you might need is not more information, or perhaps even much lesser information.  Maybe all you need is just to know what you are doing.

What if all systems are down: 

  • How do you think the market will function if there is a direct-line to trade?
  • Will you buy or will you sell?
  • Will the government impose extraordinary measures?
  • Are they within your control?
  • Is that anyone’s guess?

 

 

#5 Talk to People

Banker in Deep Thought

Talk to CEOs of big and small companies.  Are they growing and spending on businesses and investments? Talk to managers and talk to people on the street.  How are they feeling?  Are they withholding their worries from you?  Are they spending or are they saving more?  Do they have too much time?  Are they lazy on their job?

For all the financial data on buying or selling volume, why not collect the information from the people, where their explanation on their buying or selling basis tells you more.

Read: 20 Reasons Why People Buy or Sell

  • Re-activating an Inactive Trading Account
  • Broker’s Recommendation
  • Make a Quick Buck
  • More … …

 

#6 Ask Yourself a Great Question

Digital Connection

If you are not allowed to make a change in any investment, including risk management strategies or return enhancement strategies, will your investments outperform everyone else?  Or simply ask for a higher payout or performance bonus.

” ask for a higher payout or performance bonus “

Questions like this will test your resolve in your views on economics and the allocated investments.  More importantly, ensuring the “identified timeframe or duration” will provide your expected returns.

After all, opportunity cost and the real rate of returns, may mean more than just outperforming your peers or benchmark.  Unless, of course, you are the market-maker.

 

How do you start your morning?  The rush to absorb and review new and relevant financial data and information?  Checking for material news that might impact the portfolio?  Going for morning updates and meetings?  Checking risks and exposures? Checking margin calls?  Or a morning coffee?



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