Skip to content
logo
  • Cryptocurrency
  • Finance Tips
  • Investing
  • Make Money Online
  • Work From Home
  • Quiz
  • About Us
  • Privacy Policy

Investing Tips to Become a Successful Investor

Posted on February 13, 2022February 14, 2022 By Avantika Ginodia No Comments on Investing Tips to Become a Successful Investor
Investing

In order to grow your wealth, you must invest your money. Becoming a successful investor is not something that happens overnight. Learning the ins and outs of the financial market, as an investor, takes a lot of time and effort.

What separates a successful investor from the rest? Mentioned below are some of the most helpful investing tips to become a successful investor.

  • Get started in investing

To be a successful investor is a journey on its own, it is not a one-time event. You will have to prepare yourself over a period of time in order to be a successful investor. Get your finances in order before you start investing. Nowadays there are some apps available where you can start investing even if you have some extra cash in your account

  • Investment philosophy

It is easy to invest in hot stocks randomly, however, it is important for a successful investor to think of the big picture before and envision their goals before investing. You must decide what financial objectives you are looking to achieve, building up retirement savings, funding your kids’ financial needs, buying a house, etc. Being clear of your investing goals will help you stay on track and motivated.

  • Diversification

When it comes to asset allocation, diversifying your portfolio can help you take control of the risk of market volatility. There are different types of assets you can acquire are bonds, stocks, real estate, futures, commodities, etc. Some of these require you to take a bigger leap of faith than others. When you invest in more than one set of assets, you make your portfolio diverse, and therefore, lower your risk. If possible, it is also preferred to diversify within each asset class as well. For instance, if you want to invest in stocks, you can go for stocks of companies from different industries.

  • Do not worry about market volatility

Several times, naive investors buy a stock and later proceed to check if their stock has moved up with the market at all and feel devastated if it has dropped. It is crucial to realise that the daily highs and lows of the market do not matter in the long run. The daily volatility of financial markets is overshadowed by their overall upward trend over the years.

  • Strategise your investment

No one knows your situation better than you do, therefore it is advised for you to do your own investing, with a little bit of help. A very useful behaviour model developed by fund managers Tom Bailard, Larry Biehl, and Ron Kaiser helps investors understand themselves better in order to invest better.

The model categorises investors according to two personality characteristics, method of action (careful and impetuous) and level of confidence (confident or anxious). On the basis of this model, an investor can be divided into five groups.

  • Individualist: careful and confident. Have a do-it-yourself approach
  • Adventurer: volatile, strong-willed and entrepreneurial
  • Celebrity: follower of latest trends
  • Guardian: wealth preserver and highly risk avoidant
  • Straight arrow: shares the traits of all of the above equally.
Tags: Equity Finance Tips Investing Personal Finance Stock MArket Stocks

Post navigation

❮ Previous Post: How to Budget for Major Expenses
Next Post: Things to be considered while Choosing Health Insurance ❯

You may also like

Investing
How to avoid default risk in bond investments
September 6, 2022
government bonds
Investing
Things to Know Before Investing in Government Bonds
December 20, 2021
Investing
Investing Lessons from Charlie Munger
August 24, 2022
SIP
Investing
What is a SIP and why is everyone interested in it?
January 19, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You may also like:

  • What is RBI’s Digital Rupee?
  • Top Money Management Apps
  • Loan Settlement and How Does It Affect Your Credit Score?
  • How to avoid the Debt Trap?
  • Essential Tips for Money Management
  • Buy Now Pay Later vs Personal Loan vs Credit Card
  • Google Pay: Check Limit On Daily Remittance Across India
  • Tax Saving Bank FD Vs Post Office TD: Where Should You Invest To Earn High Returns?
  • Exhausted Section 80C? Here Are Other Ways To Save More Taxes
  • LIC IPO 2022
  • What is FIRE- Financial Independence/Retire Early
  • Beginner’s Guide: Decentralised Finance (DeFi)
  • How To Choose The Best Term Life Insurance Policy?
  • How To Buy, Sell and Gift Digital Gold Through Airtel Payment Bank?
  • What Elon Musk would do with Twitter
  • What Can You Do in Decentraland’s Metaverse?
  • Investing lessons from Raamdeo Agrawal
  • How to Calculate Your DeFi, NFT, and Airdrop Taxes for 2022
  • How to Become Eligible for Token Airdrops
  • Investing tips from V. Vaidyanathan
  • Cryptocurrency
  • Finance Tips
  • Investing
  • Make Money Online
  • Work From Home
  • Quiz
  • About Us
  • Privacy Policy