Start tracking your networth and finances with Personal Capital.
1. Begin with a Strategy
Developing a strategy can help keep you disciplined, focused and level-headed in your investments.
2. Embrace Diversification
Investing in diverse securities spread out over a range of asset classes can help you reduce your investment risks while increasing your potential returns.
3. Stay the Course
The key to investing success is having patience and discipline to stay invested over time. Panic selling when the market gets volatile could mean missing big opportunities.
4. Cultivate Patience
Effective investors have the patience and discipline to wait for the right opportunity before making big investments.
5. Have Realistic Expectations
Make sure you set your expectations based on historical market performance and avoid being seduced by over-hyped investments.
6. Manage Risk Wisely
Successful investors know how to manage risk and avoid losing too much money in one place. They diversify, set stop loss orders and avoid taking on too much leverage.
7. Keep an Eye on Fees
Even small investment fees can add up over time and impact your returns. Make sure you compare expenses before making an investment decision.
8. Keep Learning
The market is always changing and evolving. Keeping up with the latest news and research can help you make informed investing decisions and stay ahead of the curve.
9. Invest Regularly
Make investing a habit by setting up a regular contribution schedule. This can help you take advantage of dollar-cost averaging and grow your wealth over time.
10. Avoid Emotional Investing
Making investment decisions based on emotions can cause you to make irrational decisions and harm your portfolio. Instead, rely on sound research and analysis to guide your investing strategy.