Why knowledge is the key to successful investing

The best investment anyone can make is education. That's especially true for investors.

IG Holdings
(Image credit: IG)

Learning more about the financial world and how to improve your financial situation can generate a considerable return on investment over the long run. 

Plenty of free information exists to help anyone improve their knowledge of the financial world and investing landscape. The IG Academy, from the multinational financial services business IG Group, has the resources investors require to build their understanding of financial products and, ultimately, improve their returns when investing. 

 Designed for beginners  

 The IG Academy is aimed at beginner investors and beginner traders. A series of short, 25-minute lessons are designed to give beginners a solid understanding of financial markets, covering topics such as how to get started and build a diversified portfolio using different products and strategies. 

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IG operates one of the world's most comprehensive and advanced trading platforms. 

Investors and traders can use the company's offering to trade thousands of markets worldwide. The company offers a simple trading platform with attractive fees for investors who want to buy and sell stocks and shares (there's no commission for active investors who’ve traded 3+ times in the previous month). 

And for those investors and traders who want more flexibility, the platform offers advanced trading tools. These tools allow traders to bet on the direction of non-traditional markets such as commodities. 

 Swing the odds in your favour  

 These powerful tools can yield powerful results, but they can be daunting if you don't know what you're doing.

That's where the IG Academy comes into play. The educational resource has been designed to enable investors to achieve the best returns while controlling risk across various markets and asset strategies. The Academy is designed to help investors become the best they can be and utilise all available financial products. 

It would be a mistake to say that investing is ever easy. Even professionals make severe, life-changing mistakes on a regular basis, and it requires a lot of skill to avoid all of the pitfalls of financial markets. 

But the best investors avoid making severe errors by continually working to learn and improve their knowledge of the financial world, opportunities on offer and risks to avoid. In fact, it's knowledge, above all else, that makes a great investor. 

One of the biggest puzzles in investing is that it can be relatively easy to make a lot of money, but it takes a lot of work to keep this money. The list of successful investors and business people who've made fortunes in their respective fields but have then gone on to lose it all is endless. 

 The key is to protect the wealth you've built  

 The ability to grow wealth through all market conditions and avoid significant losses is the mark of a truly great investor. 

Education and learning are the only way to keep ahead of the market. The great American investor, Warren Buffett, has said he spends most of his day reading and learning. Even though he's been investing since he was a teenager and is 92 today, he has never taken his knowledge for granted. 

Buffett knows he needs to keep learning to stay ahead of the curve, even though he has more experience than 99% of the world's investors - he also knows research reduces risk. 

The more you know about a subject, the less likely you are to make a significant mistake. 

Even if you think you know everything, as Buffett shows, there's always something more to learn. 

Building skills and confidence 

 The IG Academy won't turn you into the next Warren Buffett, but it will equip you with the skills to navigate financial markets and develop as an investor. 

The resources will help inspire confidence, reduce the risk and, hopefully, improve returns over the long run. 

There's no guarantee anyone will become a billionaire genius after reading and studying financial resources. Still, it will help you make the most of your own knowledge, resources and improve your confidence.

After all, you can only be a great investor if you are comfortable making the big calls. The only way to be confident you are making the right calls is to keep working, learning, analysing and planning. 

The best investors know they need to do the work and use all the tools available to get the best results. IG's platform offers all the resources required to drive the best outcomes for your trading strategy.  

Your capital is at risk. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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