5 Simple Strategies to Get Started and Be a Successful Investor
However simple it sounds, investing isn’t easy. Being a successful investor is a journey on its own. Things don’t happen overnight; you have to endure the process to be a successful investor. Investing today will offer the best means to attain your long-term financial goals. Before you begin, it’s imperative to understand the simple truth; investing calls for taking risks. Your success depends on your ability to effectively manage the risks and maximize your returns in the long run. You can implement the below 5 simple strategies to get started and be a successful investor.
Have a Vision
Maybe you want to be the best stock market investor like Sir John Templeton, Warren Buffet, or Theodore Johnson? It has to begin from somewhere, having a vision. I have not seen any successful business without a clearly stated vision. To be a successful investor, you should have your ‘why,’ which is your vision. What do you want to accomplish as an investor? My why is to positively impact and transform the lives of others towards financial freedom. What is your vision? That’s for you to answer.
Budget
Understand that being a successful investor has nothing to do with chance or luck. It’s an outcome of proven strategies applied over time. Therefore, having a clear, defined budget is paramount to comprehending how much bucks you must set aside consistently towards your investment. It can be monthly or weekly, but it has to be consistent. If you’re employed, you can ask your HR to automatically redirect a portion of your salary to your investment account. For self-employed, you can request your bank to debit a certain amount periodically to your investment account. This way, you will instill discipline in your investment. Remember, it’s your life; it’s your future you’re investing. As Tony Robbins puts it, it’s your ‘Freedom Fund’; take it seriously.
Act
Source: The Inspiring Journal
Things can’t happen if you don’t take action. Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund of its time, and regarded as the Steve Jobs of investing, had to act, to achieve success. His unlikely background wasn’t an excuse for him not to action and achieve success. I mentioned this because people will always have reasons not to invest; however, don’t let your excuses stop you from acting.
Investing is Long-Term
As you take action, view investing as a long-term strategy for your financial freedom. Avoid the gambler’s mentality, and have a plan. Successful investors have a plan, and they know where they are heading. They follow a proven strategy consistently, make informed choices based on research and evidence, and eliminate emotions from their decisions. I have read books from successful investors, and one common thing from them all is having a long-term view of your investments.
Have a Diversified Portfolio
Tony Robbins, one of the best investors and financial coaches of our time, emphasis having a portfolio of investments. In his book, ‘Money Master The Game,’ Robbins defines a portfolio as
‘a collection of diverse instruments that you put together to try to maximize your financial returns.’
If you’re investing in the stock markets- my favorite, think of having a diversified portfolio of stocks. Simply put, don’t invest all your money in stocks of one company. Instead, sample as many companies as possible, research using various readily available tools to filter the best ones to invest. There are many ways you can do this, for instance, choose companies in different industries (manufacturing, entertainment, sports, etc.), or depending on their sizes (start-ups, middle-sized, or big companies).
Parting Shot…
These are not ‘secrets,’ nor are they guarantee. However, if you pay close attention to them in your investment decisions, you’ll most likely achieve your investment goals. They are what successful investors have done in the past and achieved success. You can embrace them as well. Contact us if you need further guidance.
Image Credit: Money Crashers
