{"id":1420,"date":"2010-08-19T00:01:38","date_gmt":"2010-08-19T06:01:38","guid":{"rendered":"http:\/\/ishmaels.net\/blog\/?p=1420"},"modified":"2010-08-19T00:01:38","modified_gmt":"2010-08-19T06:01:38","slug":"7-simple-tips-for-investing-success","status":"publish","type":"post","link":"https:\/\/www.ishmaels.net\/blog\/2010\/08\/19\/7-simple-tips-for-investing-success\/","title":{"rendered":"7 Simple Tips For Investing Success"},"content":{"rendered":"

I have posted several “rules” and “tips” for investing. Found another one that fits all the criteria of “good investing”, so I will throw it in here for things to look<\/strong> back and study on. Some day I might actually follow all this and be a little lucky and make it to retirement? – WD0AJG<\/p>\n

Wouldn’t it be great to have great Investing Success without any risk, I certainly think so, although the simple reality with investing is that there is a risk<\/strong>. However with a plan, knowledge and in time<\/strong> experience this risk<\/strong> can be minimised and the overall outcome is a very effective means of achieving your financial goals. The type of plan<\/strong> to adopt is really dependant on what suits you best, you may like to have an aggressive strategy with possible greater returns and more risk, or maybe a less aggressive strategy with lesser returns and lower risk, or even anywhere in between. Also you may like to have investments that mostly look<\/strong> after themselves and only require attention every now and again, or you may prefer to be more involved in your investments and know exactly what your money is doing all the time<\/strong>. There is no real perfect plan<\/strong> or any real secret to investing however these simple tips may assist in your investing success.<\/p>\n

Tip 1: Set Motivating Goals<\/strong><\/p>\n

Goal setting is a very effective when investing, it provides the means to set<\/strong> a target for yourself, gives you direction and is helpful in motivating you to do the things to achieve your desired result. Setting motivating goals is completely dependent on personal preference, you may be motivated by the goal of returning enough money from your investments to buy a luxury yacht or you may be motivated by the goal of having 20 investment properties in your portfolio. There is no right<\/strong> or wrong goal as long as it gives you direction, gives you something to aim for and motivates you, then you’re on the right<\/strong> track.<\/p>\n

Tip 2: Do your Homework<\/strong><\/p>\n

With the potential risk<\/strong> involved with any type of investment, doing your homework is an essential process. You wouldn’t go to a car yard with no particular car in mind and purchase the first one you see, you would do your homework first wouldn’t you. For example you would have some criteria set<\/strong> out and you may be looking for a car that is reliable, performs well, appeals to you, basically a car that just ticks all the right<\/strong> boxes. The same goes with investing, you would most likely not get the best result by investing in the first shares you come across or the first property that you inspect. For the stock<\/strong> market, doing your homework may involve searching news articles or press releases for a particular company you have an interest in and checking the history of the stock<\/strong> price. While for a property you may do a check on the surrounding suburb, find out the previous sale price, get building and pests inspections done on it. There are countless things you can do to ensure that you are making a wise investment decision, make sure you do your homework and you’ll do better than most.<\/p>\n

Tip 3: <\/strong>Invest<\/strong> Regularly <\/p>\n

Investing is not a get rich quick scheme to be truly successful at investing you need to do it regularly. The best chance to acquire measurable wealth lies in developing the habit of adding to your investments regularly and putting the money where it can do the most for you. You can put $10,000 into a share account returning an average of 20% per year, and if you take all of that return out every year<\/strong> in ten years time<\/strong> you may have earned $2,000 every year<\/strong> but you’ll still have only $10,000 in that account minus account keeping fees and the loss in inflation, tax etc., giving a total net worth of $30,000. However if you reinvested that $2,000 every year, in ten years time<\/strong> you’ll have a total net worth of about $62,000. That’s $62,000 in your share account now with the potential to earn you $12,400\/year<\/strong> at 20%, as opposed to the $2,000 you would still be earning with the other scenario. Now this may not included potential losses in either case, but the idea is to highlight to you the benefit of regularly fuelling your investments?<\/p>\n

Tip 4: Keep an Investment Diary<\/strong><\/p>\n

Keeping a record of your investments can be a great learning tool to determine the strategies which work best for you and can be an insight into why an investment worked so well or why it didn’t work so well. Having the right<\/strong> information which you can always look<\/strong> back on will lead to wiser investments in the future, therefore minimising risks, increasing the potential returns and thus greater investing success. Information that may be helpful to keep a record of includes: <\/p>\n