Successful investment strategies don't require you to be a graduate in Finance or Economics, but they actually demand a specific understanding of your goals, risk-taking ability and time management. Best investors are those who can decide what would be the best for them and have a clear knowledge of when, where are how the money should be invested. So, is there a specific guidebook that teaches us how to attain success in the share market? Well, there's nothing as such! But there few traits that are visible.
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.by Warren Buffet
So, want to know the success mantra of financial market heroes? Here we uncover the 5 habits that highly successful investors usually follow!
- Commit to a long-term investment strategy!
One of the fundamental things, that every investor should know is to have patience and faith in a long-term strategy. As the stock market fluctuates every now and then, short-term investments can simultaneously be risky and beneficial too, although, long-term combines the best of value and growth. Thus, even when you witness ups and downs in the market, just stay invested. Your fundamental goals will also let you remain focused and will teach you not to waver in such investment approach.
- Be diversified enough!
Diversification is the key to successful investing as it helps to control the risk. Although, it will not increase or maximize your gains in the rising market, yet, is able to capture a substantial portion of your gains during the long term.It even ensures less volatility rather than just letting you invest. Thus, it lets you enjoy smoother rides in the course of your investment even if the market rattles, rolls, and shakes.
- Thorough research before investing is a must!
The ability to identify good investment opportunity flourishes with large-scale research which not many individual can do because of limited time/knowledge. So, before you are willing to invest, do spend time on researching for the right product or advisor. The success of your investment depends upon how in-depth research you or your adviser carry out.
- Don't over trade, but manage the costs!
To board into the ship of successful investment, managing your costs is essential. There are variants of costs that have numerous implications; there are regulatory costs, transaction costs, taxation costs and the cost of missed opportunities. If you are willing to get on a peak, always keep your costs to a bare minimum, because this, in the long term, definitely makes a huge difference in your overall investment portfolio.
- Let your profits run for longer duration!
Always stay focused on your conviction and don't ever get driven by the percentage of returns that you can earn, or have earned. For instance- Buying an investment for around Rs. 10000 and then selling it at 14000 within 2 years can let you earn 20% annualized returns. A profit of 4000 is a great amount for sure, but it makes you loose on the humongous appreciation that comes with holding on for long.
A Rs. 1000 investment in early 1994 with Franklin India Blue Chip Fund has a value more than Rs. 1,14,000 by the end 2017. Thus, successful investors play the master stroke by keeping patience and letting their profits run for longer.
Thus, by implementing these successful strategies, you can easily build up the wealth that you dream of and can climb the ladder to your financial goals.Signup with IndoInvesting, we will help you keep your investments on track and achieve your financial goals.