Sure, you can be a successful investor on your own, but learning from the best can really accelerate your learning. What better way than cutting down the learning curve time than learning from some of the most successful investors out there?
If you want to be one of the best, you need to start implementing habits that will set you up for success.
Here are five habits that five successful investors all have.
Investing is not driving a bucket of balls at the range. A wicked slice may hurt your pride but a bad investment could cause a costly ripple effect that reaches well beyond your checkbook. If you’re a beginner, you owe it to yourself to read up on the trillion-dollar and multi-national system we call the marketplace. It’s important to understand things like the difference between futures and options, effects of currency manipulation on foreign investments and interest rates, dividends, capital gains, leverage, vesting, margins, premiums, as well as volume. Yes, it’s a lot to learn, but it’s necessary.
Do you know the difference between a Collar Strategy and a Calendar Spread Strategy? Are you a value investor? Do you believe that past performance is a reliable indicator of a given stock’s value?
Finding the right strategy helps you invest within your budget and achieve your investing goals. A financial advisor can help you make sense of the various strategies and select the one that’s right for you. Of course, you can always dive into the market without a strategy, but you’ll probably wish you had one when the tide inevitably changes.
Wealth, like Rome, wasn’t built in a day. It takes brains, a few lucky bounces, and no short supply of patience. Sit down with a financial advisor and come up with a list of realistic goals. Write them down and read them often. Reconsider them at times. But whatever you do, don’t deviate from your goals at the first patch of rough water. A well-thought out, proven strategy can help you set achievable goals, an advisor can help you stick to them, but in the end it comes down to you to see these through.
When our back is against the wall we often ask ourselves, ‘What have I got to lose?’
Depending on your investments the answer could be a lot! If a fund declines in value, it’s the fund’s job to recover! The last thing you want to do is try to compensate for an underperforming stock. If you have a strategy then it should carry you through market downturns. Stick to the plan, stay within your budget, and if all else fails, see a financial advisor before you bet the house on a wing and a prayer.
Investing, like Fantasy Football, has a tendency to become all-consuming. Unlike Fantasy Football, investing doesn’t have an off season. Find some separation from the market and keep your perspective. Remember, you are investing because you want the financial freedom to do the things you love. So, don’t let the market keep you from living the life it’s meant to support.
Jeremy Blossom has been building ideas to grow businesses for more than 15 years. For over a decade Jeremy was active in the financial industry and his understanding of the financial sector is vast and deep. Under his leadership, he delivers result-focused strategies and executions that are designed to do one thing: make clients more profitable.