It’s a bird, it’s a plane, it’s new electronic gadget, it’s some new tax from the government. No, it is an acronym: WASEEM, the development stages of the eclectic investor. I searched the thesaurus for a better acronym but for now it is WASEEM.
Stage 1 – WISH / ASPIRATION / DESIRE
Every investor begins with a desire to make more money to improve their way of life. The eclectic investor goes a step further; they create wealth by using any means that will help them. They are willing to experiment and learn. They are investment omnivores.
Stage 2 – AWARENESS
You, the eclectic investor, are conscious of your current position. You are aware of what you know and what you don’t know, your strengths and weaknesses.
Stage 3 – STUDY / LEARNING / RESOURCEFULNESS
You are in the process of building and investment toolkit. You explore different investment options and acquire the necessary knowledge to become proficient in them. You learn by reading investment books, going to seminars, joining investment clubs, buying investment newsletters, etc.
Stage 4 – EXPERIMENTATION
You try out what you’ve learned in the study phase. You follow other peoples trading strategies and trade them with limited success. You do lots of testing and become familiar with the different investment options. You will probably be cycling thru stages 2 to 4 continuously until you reach stage 5.
Stage – 5 ENLIGHTENTMENT
The “A-ha!” moment. After experiencing many different strategies and internalizing them, at some point you have an epiphany. You create a framework and define a system that works for you.
Stage 6 – MASTERY
True mastery is illusive. You might be very good at making money. You might be considered an expert in your field. However, you never become complacent because the market is always changing. You never think that you know it all. You are humble. You have an investment framework and keep updating it. You are eclectic!
WASEEM, the development stages of the eclectic investor.
At what development stage are you?
Thanks for reading. Happy investing!!
P.S. A friend of mine didn’t like the acronym WASEEM, she said it was hard to remember. I had hoped to come up with something like EUREKA, SHAZZAM or BINGO. If you have a better idea I’d appreciate your comments.