3 Tips for New Investors to Boost Performance (and sleep better at night)

Hey there, savvy Individual Investor!

Ever feel like the stock market is a giant casino where only the house wins?

Trust me, I've been there. But what if I told you there are ways to tip the odds in your favor, even if you're just starting out?

Buckle up, because I'm about to spill the tea on three powerful strategies that could help you outperform the market, keep more of your hard-earned cash, and build some serious long-term wealth.

Here's the deal: Most newbie investors either freeze up, too scared to dip their toes in the water, or they go all-in on some "hot stock tip" their cousin's roommate swore by.

Neither approach is great for your financial future (or your stress levels). But here's why getting these right matters: A solid investment strategy isn't just about making money – it's about creating the future you want.

Whether that's early retirement, buying your dream home, or just having the freedom to tell your boss "sayonara" if you feel like it. Without a plan, you're basically leaving your future up to chance.

No thanks!

Now, you might be thinking, "Can't I just throw my money in an index fund and call it a day?" Sure, that's not the worst idea.

But it's like ordering plain vanilla ice cream when there's a whole sundae bar available.

You're missing out on some seriously tasty potential. 

So, ready for the good stuff? Here are three tricks that'll make you feel like a Wall Street wizard (without needing an MBA):

Strategy #1: The "Surfing the Waves" Strategy

Imagine if you could ride the market's waves instead of getting wiped out by them.

That's what using moving averages is all about.

By keeping an eye on some simple indicators (don't worry, I'll explain), you can catch more upswings and duck out before major crashes.

Moving averages are a simple indicator that help investors spot trends at a glance. 

If a moving average is rising, it can signal that a stock is in an uptrend. Conversely, if a moving average is falling, then it can signal that a stock is in a downtrend.  

In my Simplified Index Investing OS as well as my Advanced Index Investing OS taught in my online courses, I use two simple moving averages along with a few other signposts as buy and sell indicators. 

If price is above the moving average, I increase exposure. 

If price is below the moving average, I decrease exposure. 

Once you see this, you can't unsee it. 

Strategy #2: The "Toe-Dipping Technique"

Choosing to learn and apply a new Invesment strategy can be intimidating at first. 

Instead of cannonballing into the deep end with an actively managed system, this method lets you wade in gradually.

You adjust how much you're invested in the new actively managed strategy based on how confident you are in the strategy. 

It's a great way to build confidence without risking it all.

One way to implement this strategy.

When working with a new system, consider allocating most of your portfolio to a passive index strategy where that majority of your funds are in a simple index ETF (exchange trade fund), then allocate a small percentage of your portfolio to an actively managed strategy that you are learning. 

Your investment split could look something like this:

New to the System: 70% Passive Index ETF Strategy, 30% Actively Managed Index ETF Strategy. 

As you gain confidence in the strategy, begin allocating more and more of your capital to the new strategy. 

More confident in the system: 50% passive Index ETF Strategy, 50% Actively 

Investing should never be an all or nothing thing. You should always balance your exposure based on your level of confidence. 

Strategy #3: The "Weekly Wisdom Check-In"

Dedicate just 2-3 hours a week to your investments.

Use this time to learn, test out ideas, and fine-tune your approach. Think of it as your personal finance power hour(s). You'd be amazed at how much you can accomplish with consistent, focused attention.

Here's the best part: You don't need to be a math whiz or have a crystal ball to use these strategies.

They're designed for regular folks who want better results without obsessing over their portfolio 24/7.

Here are three ways you can spend 2-3 hours this week to improve your portfolio: 

• Spend an hour making a personal investment plan. For example, use a retirement calculator to determine if you are on track for retirement. 
• Spend an hour reviewing your investment options in your 401K. Login to your employer sponsored plan and just poke around. You're not going to break anything. If you run across terms that you don't understand, look them up. I like to use Investopedia to research things I don't know about. 
• Spend an hour reading a book on finance. I highly recommend taking a look at The Psychology of Money by Mogan Housel. He talks about timeless principle on wealth, greed, and happiness. 

Practice this "Weekly Financial Wisdom Check-in" and in a year you'll be ahead of 90% of people. 

So, What's your next move?

Start by taking a good hard look at how you're investing now.

Are you sitting on the sidelines, or are you taking unnecessary risks?

Then, pick one of these strategies and give it a try. Remember, even small steps can lead to big changes over time.