12 Valuable Tips to Become a Full-Time Investor

January 3, 202410 min read
12 Valuable Tips to Become a Full-Time Investor
Share on facebookShare on TwitterShare on Linkedin

Thinking about becoming a full-time investor? It’s not as far-fetched as it might have been twenty years ago, particularly if you already have solid experience and a robust portfolio. What’s more, investment opportunities abound, whether you’re into the stock market or considering alternative asset classes such as art, real estate and collectibles. 

Even better, technology has helped reduce the barriers to entry for would-be investors. Witness what’s happening in the art world, where technological innovations have changed the way art is bought and sold. Advances in online marketplaces have also opened opportunities for real estate investors and crowdfunding opportunities. No longer are in-person meetings necessary between brokers and potential buyers, and you can view a roster of properties without ever leaving your sofa. 

Further, platforms such as Yieldstreet are now providing access to investment products that were formerly open only to institutions and qualified purchasers. Nowadays, it’s a whole new investment world. Still, committing yourself to investing full time IS more than a notion.  

These 12 valuable tips can help you get settled as a full-time investor.

The Pros and Cons of Becoming a Full-Time Investor

As with most anything else, there are many factors to consider before investing full time, including the risks. After all, you’d be walking away from a steady income and benefits. Making the transition from a conventional job to full-time investor is a huge decision. It’s something that should be done with a solid business plan and lots of deliberation. 

Considering these pros and cons will help you decide if it’s really for you too.

PROS

  • Flexibility. You’ll no longer have the structure and rigidities that come with a traditional full-time job. As a full-time investor, you can learn about your market and conduct investment business whenever you want.  It all depends on your circumstances and goals.
  • Independence. You get to be your own boss — if management of your own activities is important to you. Perhaps you relish working from home and look forward to building your career at your own pace.
  • A better work and life balance. Because you set your own schedule , you can better fit your work life around your family and close friends, and spend more time doing the things you like to do. 
  • Financial independence. As with any sole proprietorship, you get to determine your income. Indeed, you can make as much money as you want, if you’re willing to put in the time and gain the expertise you’ll need to be successful.  
  • Continuous attainment of knowledge. It’s common for people to have jobs that no longer stimulate them, often because their roles and responsibilities are limited. But with full-time investing, you’re constantly learning, which is both stimulating and has the potential to expose you to even more investment opportunities.

CONS

  • Stress. There’s no way around it: investing involves risk and risk can cause stress. You need to be able to handle it. You must also learn to manage the fear that can come with full-time investing. Emotion can render you unable to make strategic moves, so you’ll need to learn to take the ebbs and flows as part of the way the business works.
  • Loss of regular income and health insurance. There’s something to be said for knowing when money is coming in, and how much it will be. That’s why, before you commit, it’s imperative to have a budget in place, along with ample savings and a business plan.  
  • Finding your niche takes time. It’s important to have a solid foundation before making the jump to full-time investor. You’ll want to narrow your investment focus and immerse yourself in learning. Once you’ve developed the necessary skills and acumen to be an investor, you can try another niche.
  • Possible burnout. Because you will no longer have the 9 to 5 structure your job provides, you will find yourself with a lot of time on your hands. While that could be a positive, the tendency is to work, work, work, and neglect other areas of life. Try to break up your days or weeks with dedicated time for learning, thinking, engaging in a hobby and spending time with friends and loved ones.
  • Isolation. You’ll pretty much be working alone, which can be jarring if you’re used to, and need, regular interaction with others. It depends on your personality. Joining a local network of other full-time investors can fulfill this need, while giving you access to more experienced investment managers.

With all of that said, here are some tips for prospective full-time investors:

1. Give Yourself a Reality Check: Is Full-Time Investing for You?

As we’ve mentioned, you must be able to deal with the stress that is part of any investing, let alone full-time. You must have the stomach for all the highs, lows, and uncertainties that come with the territory. Ask yourself whether you have the psychological strength to deal with volatility and the patience to sit pat to avoid rash decisions.

You must also assess whether you can deal with bouts of boredom and loneliness. Investing may be romanticized as non-stop excitement, but oftentimes there’s not a lot going on. What’s more, you’re in this all by yourself.

You also must have good analytical skills. That means the ability to understand basic business precepts, including financial statements. You also need solid informational skills. 

2. Stay Passionate About Investing

Passion and drive are required for full-time investing. Sure, you may have the potential to make a lot of money, but you should also love what you do. If so, and you’re good at it, money will find you. And by the way, that passion should extend to the nuts and bolts of investing, including research and analysis.

One thing’s for sure: if you’re leaving your job merely to have a more flexible work schedule or to be your own boss, that’s fine. But you also need to make sure full time investing and the necessary research that accompanies it is right for you.

3. Find Your Strategy

Investment styles can vary, so it’s important to develop an approach with which you’re comfortable. One way to do this is reading books about investing theory that will help you identify your strengths as well as where you need to learn more.

You can also figure out your strategy and gain an investing advantage by investigating companies through resources such as quarterly and annual reports, SEC filings and conference call transcripts. 

It’s important to take some time and figure all of this out before you dive in.  It’s more beneficial to develop your strategy first to avoid the problems that can come along with jumping in too soon.

4. Stay Focused

Once you figure out where you want to invest, stay with it, and keep getting better. The key here will be beating back the temptation to shift gears when you hear about opportunities that aren’t in your lane. Remember, everyone should have a strategy of their own, tailored to their particular set of circumstances. What’s good for someone else might not be for you. There will come a time when you’ve gained the confidence to experiment. But early on, remain super focused on your investment calling, get it down pat, then look around to see what’s next.  

5. Keep Things Simple and Convenient

There are many differerent investment opportunities, and once you decide on a strategy, you must whittle that down, too. Say you’re interested in real estate. You must decide whether your focus will be residential, commercial, industrial, development, or some combination of all of the above. If you’re interested in art as investments, you need to nail down what you’re looking for. Simplifying the process – making things more efficient – will help you learn the ropes more quickly. This will then open more potential avenues down the line.

6. Start With a Test Run

Before working with cash, do some trial runs to see where you need to learn more – without incurring the risk factor. Try to stick as much as possible to your investment strategy to simulate real life and stay away from risks you wouldn’t take.

Take investing one day at a time and educate yourself at a pace that works for you in order to enhance your skills. One of the first things full-time investors notice is the amount of free time they suddenly have at their disposal. Use that time to work on honing your investment knowledge and skills.

Find a network of like-minded people and ask questions. There’s a lot of information you must attain, but if you hang in there, the dots should start to connect.

7. Define Your Sell Discipline

The lack of a sell discipline is a common issue among fledgling full-time investors. Is your investment strategy defined by value or time? Try to avoid momentary lapses in judgment here. And while you’re at it, be certain to adjust your sell-discipline to your lifestyle, since your income will hinge on short-term and very unpredictable cash flows. The key here is to do everything you can to eliminate emotion from your decision-making process. As we mentioned before, succumbing to fear can push you into making bad decisions. Learn to keep it in check.  

8. Avoid Investing on Margin

Would-be full-time investors should spend the early years of their nascent careers building a cash supply for when things get shaky. You don’t want to get forced into a situation in which you have to liquidate assets to raise cash.

Along those same lines, take some time to get well and truly seasoned before you consider investing on margin. In the process you might discover you don’t need to do so at all. Yes, there are times when it can get you into something good that might be just a bit beyond your reach. Just make sure you’ve done the due diligence to be certain the risk is properly managed. 

9. Automate Your Process   

Your time is valuable, so conserve it by looking for things that you can automate. The idea is to conserve time and energy for things that are most important. That may mean outsourcing the boring, tedious stuff. You’ll get a lot more done when you have help staying atop the little day-to-day things.

With that in mind, you must also decide how your business will be legally structured. This will depend on your tax situation, your costs of doing business, the level of risk to which you’re open and the volume of paperwork with which you’re willing to wrestle on your own. You may need to consult with an attorney and/or tax professional to guide you on this front.

10. Always Keep Learning

As we’ve mentioned, part of the reason you may want to leave your job in the first place is you’re no longer learning because the scope of your role is so limited. That will never be the case with full-time investing. Or at least it shouldn’t be. Some things you’ll pick up quickly, others you’ll grasp more slowly. Either way, the point is to avoid stagnancy, a state that investors can ill afford. You may even want to dedicate certain days of the week to specific areas of study.

11. Mind Your Work-Life Balance

You’re going to need to lean on your family for support early on and during tough times, so you’d do well to have a healthy work-life balance. All that extra time and lack of work structure that we talked about? Use it to your advantage by deliberately carving out time for your family and friends and other things you enjoy. Doing so will give you the refueling you need to transact business in a more positive state of mind.

12. Diversify Your Investments

It’s well known that diversification – directing investments across various industries – is a key to attaining your long-range financial objectives and can help mitigate risk. That’s especially relevant if your investments are subject to the ups and downs of the stock market. It’s also why some investors are turning to alternative investment classes such as art and real estate to diversify their portfolios. 

Alternative investments may help smooth out the effect of the market’s ups and downs.  Yieldstreet can get you going today with a curated selection of alternative investment opportunities, once available only to institutions and the ultra wealthy, that may help diversify your portfolio.

Discover Yieldstreet’s Historical Performance

See our annualized returns and overall performance.

Conclusion

If you plan to embark on the journey of becoming a full-time investor, spend some time preparing yourself before taking the plunge. Assess your psychological strength, analytical skills, and passion for investing. Work on a well-defined investment strategy and stay focused on the path that you’ve chosen. At the same time, allow some room for testing your strategies, but avoid excessive risk-taking. Learn continuously and maintain a healthy work-life balance so that your new journey is enjoyable and successful.

We believe our 10 alternative asset classes, track record across 470+ investments, third party reviews, and history of innovation makes Yieldstreet “The leading platform for private market investing,” as compared to other private market investment platforms.

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Alternative Income Fund before investing. The prospectus for the Yieldstreet Alternative Income Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetalternativeincomefund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

8 This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.

9 Statistics as of the most recent month end.

300 Park Avenue 15th Floor, New York, NY 10022

844-943-5378

No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by YieldStreet Management, LLC pursuant to a written advisory agreement between such entity and the recipient. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and are willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

YieldStreet Inc. is the direct owner of Yieldstreet Management, LLC, which is an SEC-registered investment adviser that manages the Yieldstreet funds and provides investment advice to the Yieldstreet funds, and in certain cases, to retail investors. RealCadre LLC is also indirectly owned by Yieldstreet Inc. RealCadre LLC is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Information on all FINRA registered broker-dealers can be found on FINRA’s BrokerCheck. Despite its affiliation with Yieldstreet Management, LLC, RealCadre LLC has no role in the investment advisory services received by YieldStreet clients or the management or distribution of the Yieldstreet funds or other securities offered on our through Yieldstreet and its personnel. RealCadre LLC does not solicit, sell, recommend, or place interests in the Yieldstreet funds.

Yieldstreet is not a bank. Certain services are offered through Plaid, Orum.io and Footprint and none of such entities is affiliated with Yieldstreet. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.

Investment advisory services are only provided to clients of YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure