Imagine you come across an opportunity to bump into a successful investor at a famous diner. The next moment you know, you are walking up to him for a picture and, of course, some expert advice on how to keep winning at the investing game. Typically, in scenarios like these, all you will ever return with is the picture.
So, if you are looking for some actionable tips and strategies, read on to learn about some investment secrets no successful investor will share.
1. The element of luck exists big time!
You may realise that most successful investors will not admit that they have been lucky in the investment game! Well, investing is indeed an art and how successful you are depends on how well you apply your skills. But to be at the tipping point of trends is nothing but luck. Hence it is wise to conclude that although investing is 95% about applying skills and strategies, the balance of 5% held by luck holds good importance & value.
2. Be wise enough to water the flowers instead of holding on to the weeds
The success ratio of all the investors may be as good or as bad as any other fellow investor. The idea is to understand when to hold stock or get rid of it if it leads you to a losing position. The longer an investor chooses to hold onto their winning stock, the more chances of earning more.
3. One Bad Trade: Fall from the top
It has happened with the smartest investors, and it can happen with you. One bad decision can snatch away all that you have gained. You must pay attention to all the minor & major decisions in your investments. The stock market will always hold the ability to turn tides, and the sooner you realise it & implement your trade strategies, the better.
4. Smart moves to deal with overpriced stocks
Good high-quality stocks come at a cost more than the regular price. Smart investing includes taking risks on such stocks whenever required. Following the herd is not going to get you anywhere. If you want to have quality stocks in your portfolio, taking risks on these stocks may get you the desired return.
5. All you need to know about deliberate passivity
Online stock investing is not about taking some action all the time. Patience and perseverance are two of the most important traits of successful investors. Knowing when to wait on the sidelines is as important as being the frontrunner. Investors may not explicitly call out that they practise inaction, but it is something that is a deliberate call. When the market is falling and traders are running to sell or buy their stocks, it is the patience to wait for things to settle that gives you an edge.
6. Diversification of risk: Do not put all your eggs in the same basket
Building a portfolio is an art. Wise choices like diversifying your risk & buying various stocks help you achieve that. All the top investors like Soros and Buffet ensure to diversify their risk & play their cards well. Diversifying the risk will allow you to have a more risk-taking capacity. The concentrated approach focuses on stocks from similar sectors or only one sector. It does not help in the long run. Here, a mobile investing app can help you mitigate the risk with its investor friendly features and technology.
Hence, it is important to be mindful and follow an approach that best suits you rather than simply following the crowd. Happy investing!