Investing is a skill: How to build confidence and positive habits

How do you become a better investor? It’s a skill, and like any other skill, it can be improved by forming positive habits and expanding your knowledge.

Yet, many people think successful investors are born with the skills they need. According to an Aviva survey (26 May 2026), 61% of respondents think some people are just “born investors”. While there might be personality traits that support successful investing, no one is born knowing how to invest.

42% of people who took part in the survey said they would like to change how they manage their investments, and the good news is that you can.

Investing skills can be developed through education, practice, and consistency. Even experienced investors benefit from continuous learning.

5 steps that could improve your investing confidence

Step 1: Start by learning the investment basics

It’s never too late to learn the basics of investing. There are plenty of resources available online, and your financial planner could help too.

Understanding why you might want to invest is a good place to start. While cash savings are secure, the interest rate they earn is typically below the rate of inflation. As a result, the spending power of cash assets could fall in real terms.

When you invest, you have the opportunity to achieve above-inflation returns, allowing your assets to grow in real terms. However, unlike savings, you can’t guarantee what investment returns will be generated, and there’s a risk that you’ll lose some or all of your money. The good news is that you can choose investments that align with your risk profile.

As you get to grips with the basics of investing, here are some other questions you might ask your financial planner:

  • How is my risk profile created, and how does it affect what investments are suitable?
  • What does diversification mean, and is it part of my investment strategy?
  • Does that level of investment return mean I am on track to meet my goals?

Learning more about investing could help you feel more confident and take the plunge if a lack of knowledge has been holding you back.

Step 2: Understand the importance of goal setting

It can be easy to think that the most important thing about investing is the returns generated. However, that’s just a number; what you really want to know is whether the returns will support your long-term goal.

So, take some time to think about why you’re investing. Perhaps you want to build a nest egg for retirement or to fund your child’s education. Your goal will affect important factors, such as the investment time frame and what level of risk is appropriate.

Having a clear objective could also help you maintain your focus and mean you’re less likely to stray from your investment strategy.

Step 3: Start by investing small amounts

Many people learn and build confidence by doing something themselves. Consistently investing, whether that’s through a pension or a Stocks and Shares ISA, could help forge positive money habits.

You don’t need to invest a large sum to get used to market movements. Even transferring £20 a month into an investment account could help establish good habits.

Step 4: Learn to trust your investment strategy

One challenging investment skill to learn is patience. Once you’ve invested your money, you might feel like you should be doing something, such as tracking daily market movements or searching for a new opportunity.

Yet, for many investors, investing in line with your strategy and holding assets over a long-term time frame makes financial sense. Mastering the discipline to sit back and trust your strategy can be difficult.

Tuning out the noise could make it easier to build this skill. Limit the time you spend reading newspapers or visiting social media channels that you know are likely to have market updates. Avoiding investment news until it’s time to review your portfolio’s performance could help you avoid making mistakes due to impulsive decisions.

Step 5: Continue asking questions and learning

Finally, don’t be afraid to ask questions, even if you’ve set an investment strategy. Whether you want to understand whether investment returns are on track to meet your goals or why a particular investment is suitable for you, your financial planner can continue to offer guidance.

Get in touch

We’re here to answer your investment questions and could work with you to create an investment strategy that suits your needs. Please contact us to speak to a member of our team.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

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