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How to Become a Successful Investor
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Investing in the stock market is one of the most profitable and the riskiest kind of investments. Nowadays, in most cases, investment allocation is a result of flowing cash to the assets where the current return and risk are satisfied a certain investor expectation. There are some differences between such participants on the stock market as investors and traders. However, a classical investor and trader are both aim at gaining money. History evidences the different cases, when an investor started with a small amount of money and eventually became very rich, or on the contrary, when a millionaire lost all investments on the stock market and became poor. What is the most important quality that separates the winners from the losers on the stock market? The answer is simple - it is knowledge in investing, either that is based on collected wisdom by other investors or gained through making own mistakes. Anyway, the following basic principles could be useful to remember:
Never invest all your money in the stock market, especially, if you are a beginner. Common recommended portion of invested money in stocks is from 25% to 50% of your total budget.
Never invest all money in one stock - always diversify among several stocks in different sectors.
Always watch closely general market conditions, especially, when bear market is about to start. Be prepared by selling most holdings in advance.
Never rush with investment solution. Carefully watch financial quarterly reports, news, and macroeconomics trends before making any decision.
Never let your emotions prevail over a rational disciplined approach.
To improve return/risk ratio, use reliable software tools that embody the investors' concentrated wisdom.
All stocks are volatile without exception. There will be always a certain probability that something suddenly will go wrong with any stock. Even the best stocks can depreciate.
USA recent researches show توصيات الأسهم الامريكيه that an average investor has around $250,000 investment assets and more than half investors uses brokerage advices. Investing is popular for both genders almost equally. For the last decades, the expectation of most investors decreased from about 30% to about 10% of annual return on investment. Most investors prefer a long-term type of investments with less than five transactions per year. Not everyone is able to succeed in investing. Most losses in investing happen because of lack of knowledge, over-confidence, impatience, greed, fear, and different delusions. An experienced investor knows that there is a direct proportion between time spent to increase investing skills and return on investment.
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