5 way an investing coach can help you

If you are reading this article, it is because you have either an interest in learning about how to trade stocks, options, or other paper assets, or you are actually doing so on a regular basis. No matter how much experience you have, the following things are probably true about you:

- You don't know it all

- Someone else knows more than you

- With an open mind and a little effort, you can always know more

It doesn't matter if you only a few thousand to invest, or regularly manage a few million, you can do better (more successful trades, better long term returns, more systematic approach) if you had the proper education and guidance.

One way to do that is with an investing coach who, like a coach in a professional sport, may know a lot more about the way the game is played than you do, may even play the game better than you ever will, but will not play the game for you. There may be drills, additional off the field background work, and a constant review of the fundamentals, but when the bell rings or the whistle blows, it is up to to make the decision and take your shot.

For the individual investor, sports metaphor isn't exact, but the point that a good coach could improve your performance is appropriate. Like a game, investing has rules and guidelines. One big difference is that on the playing field, there are many rules in place to make sure that are more fair. For example, each side has to play by the same rules and players and teams are generally at a similar skill level. If things get way out of hand, there the players or the referees can put a stop to the game before feelings or bodies get too bruised.

In the investing world, it is way different. Players of every skill level get to compete, and if you are getting completely beaten by the competition, no one is there to save you, and the game will keep on rolling, even if you throw in the towel.

5 ways a coach can help you

1. Pointing out things you should understand: If you don't understand fundamentals like the difference between a call or a put, or a stock or a bond, a coach can help you figure out what you need to know before you start putting your money at risk.

2. Help you understand how to play your position: For most investors, especially those who buy and sell individual stocks and options on those stocks, how you deal with a situation depends on many factors, and a coach can at least help you to understand what key factors you need to understand before making a decision.

3. Share his or her experience: A good investing coach is likely to also be an investor with a lot of past and current experience. Any mistake that you are likely to make or any confusion you have on some topic won't be new to them, and they can help you ease the learning process and maybe help you avoid a big mistake.

4. Help you learn from others: If a coach has not experienced an issue that you are dealing with, he or she has probably coached someone else who had that same issue, and can help you overcome that obstacle.

5. Accelerate your development: When it comes to investing, long term success is measured in how much and how quickly you can increase your asset base and your cash flow. If a coach does a decent job, you will likely invest in ways that play to your strengths, and that increase the rate that you can grow your assets and cash flow. It doesn't take much. For example, if you started with $100,000 and grew it at 5% a year. At the end of five years you would have about $163,000. If you had grown it at 10%, the 100K would have grown to over $259,000.

Where do you find a coach?
You can find a coach very easily. In fact, you probably get offers by phone, mail, or email all the time. The problem isn't finding a coach, the problem is figuring out which ones are worth investigating.

The MoneyBahn rule of thumb is that if the coach is asking for a bunch of money up front, walk away. If they are selling a can't miss method where they get a bonus for selling it to you, run away. If all they are asking for you to take some time to listen or to try out their coaching for free, then give the coach a chance.

MoneyBahn has a few favorites, and although they do offer their services for a price, they offer a ton of stuff for free as well. Contact us and we will point out our favorite free resources.