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This week on Money and Investing, Mitch Olarenshaw and I discuss what it takes to go from beginner to the big league, with practical lessons on building your first million in the market.
1. Start With Process and Mindset
Success begins with building the right habits. Investing is not about guessing or chasing tips. It is about discipline, process, and developing the mindset of an investor. Without that, human nature and emotions can quickly derail progress.
2. Learn the Skill and Respect Time
Trading is a skill, not a gamble. Education helps shift the odds in your favour, while patience and consistency allow compounding returns to work. Time is your ally, so avoid the trap of chasing overnight wins.
3. Avoid Common Mistakes
Beginners often fall for “hot tips,” over-diversify, or skip risk management. These errors can wipe out accounts early. Protecting capital and sticking to your plan is more important than chasing short-term gains.
4. Prioritise Risk Management
It is not about how much you make, but what you keep. Having rules around stop-losses, diversification, and risk controls is non-negotiable. The first cut is always the cheapest. Small losses prevent catastrophic ones.
5. Commit to Time, Consistency, and Reinvestment
Building wealth comes from consistent contributions, reinvesting returns, and letting compounding work. Even small, regular amounts add up to significant growth over decades. The discipline to keep going is what separates beginners from those who reach the big league.
For more Info about Money and Investing, you can go to the podcast; The Wealth Playbook: Your Ultimate Guide to Financial Security; and The Wealth Playbook by Andrew Baxter – Audiobook, which is on Audible.
Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
