9 Habits Of Successful Investors
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
Success in life is often down to developing positive habits. If you read more books, you’ll become more intelligent. If you go to the gym, you’ll become physically fitter.
This is also true of investing. If you put in the time and thought, you’ll hopefully benefit from a stronger financial situation.
The following habits are examples of how successful investors think. These achievable steps are all things you could easily apply to your own life, helping you to potentially become a better investor.
1. Setting Goals
Successful investors all start out with a goal. This is your personal destination, the place you are trying to get to financially.
By setting a goal, you’ll have a sense of purpose, it will help keep you focused. It could be that you are saving for retirement, and have identified a certain amount of money needed to live comfortably. By setting the goal amount, you can then work towards it.
Once you have identified your goal, you should plan how you intend to get there.
Key things to consider are your goal amount and term time. This will help you with keeping track of your investment, enabling you to see what you need to put in and how much you may have to top up to get to your eventual target.
3. Analysing Risk
The most successful investors are skilled at managing risk. You should be aware that investments can go down as well as up, so it is important to pick a risk profile that you are comfortable with.
We offer five clear risk profiles to match your attitude to investment risk.
To help manage risk, successful investors look to diversify their portfolio. This can help to manage volatility and fluctuations in the market.
We use Advanced Diversification to blend together multi-asset strategies from world class fund managers, to create portfolios that are stronger than the sum of their parts.
You should get in the habit of tracking your investment, although you should also keep in mind that investing is a long term process.
With tracking, you can decide if your investment needs topping up. You can do this with impulseSave® , which enables you to top up on the go from just one pound.
6. Topping Up
There could be several reasons for topping up, maybe your investment has fallen behind, or maybe you’ve just got some extra cash that could be invested.
If you get in the habit of investing when you can, you could find that you achieve your goal quicker.
7. Long Term Thinking
It is important to get in the habit of thinking long term with your investment. A strategy deployed over time is likelier to ride out any fluctuations in the market.
Using our platform, you can track your progress 24/7 online through your personal client site or via a range of apps.
Good investors are constantly listening and learning. This helps to identify opportunities.
We utilise expert views from well-respected names such as UBS, Allianz, Goldman Sachs Asset Management, Columbia Threadneedle, Schroders, SEI, Close Brothers, and 7IM.
Furthermore, our in-house technology allows for research and data analysis.
To sum up the successful habits of investors, a lot of it comes down to your attitude. If you plan correctly, putting the right amount of money into the right places over the right amount of time, you could find that your wealth goes up.
Good choices are important, so consider looking at our website to learn more about how investing works at True Potential
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