|
|
|
Successful InvestingBy Roger Sorensen
When it comes to investing, there are some simple rules that you can use as general guidelines to help you make better decisions in your investments. While it is important to look at the specific circumstances relating to you and your money, as a general guideline these "7 Rules Of Successful Investing" will apply to most people, most of the time. Understanding these basic concepts are an important foundations to rely upon to ensure a good investment strategy.
1. The higher the investment returns, the higher the risks involved with the investment — this is true virtually 100% of the time. If an investment seems too good to be true, it probably is.
2. Diversification of your investments across a broad spectrum is usually a good investment strategy.
3. It's important to be patient and stick to your plan. Refer to rules #1 and #2 if you begin to feel impatient and want to try and make a quick buck.
4. When investing, your emotions are usually your greatest enemy and can easily derail you from your long-term investment plan if you're not careful. Don’t succumb to fear when the market is dropping and don’t become greedy when prices are rising.
5. Consult with your investment advisor, but do not rely on your investment advisor 100%. It's important to be honest about your investment concerns and to ask questions of your investment advisor to get opinions and information that you may not have considered yourself, but ultimately you should be the one to make your own financial decisions. Only you are responsible for all financial decisions made.
6. Don't invest in things you don't fully understand. Always read the prospectus. If you can't understand the risks, costs and liquidity the investments, do not make it until you do. If you can't understand an investment fully, get help and do more research until you do.
7. You need to make clear investing goals. It's important to take in your personal factors when making these goals. You need to know
Your current resources that you can put toward investments
Your investment risk tolerance
The time horizon for the investments
The ultimate investment goal you're trying to reach.
Design your investment plan taking into account all these factors as they apply to you, monitor your results over time and make adjustments when needed.
Copyright Roger Sorensen
Previous: Einstein's Rule Of 72 | Next: Invisible Investment Risks
|
|
Home
Forums
Newsletter