Five secrets of successful investors

"Everything you
you see, I owe to spaghetti" - this
known secret of beauty from Sofi Loren,
perhaps surprised when something many ... But every
of us once dreamed of finding some
magic item, magic formula,
which will lead us to the ideal - for
someone is happiness, for someone -
wealth.

The author says
its customers for many
years that investing secret is
that there is no secret. Instead of this
the success rate is only a good knowledge
currently, bases and the right choice.

However, it still highlights
five "secrets" of successful investors:

1. Know what you
own and why you own
this. It's like the anchor of your plan.
Successful investors will tell you why
the first thing they bought these
action - even before they explain that
it is generally for a company like that. accidental
"A collection of investments" - is bad
way to invest.

2. It should be
ready for the market jump. In recent years
Markets were fairly quiet, just
some unexpected and dramatic
ups and downs. This not normal.
The successful investor knows that when the market
falls, is not the time to run, but
it is possible to buy. People, as a rule,
Watch out for the investment profit because
they sell when the market is in
difficult position. "Meet" with
such market impacts (aka -
volatility) and stick to your
strategy.

3. Diversify
your investment portfolio. In fact, you
you know the term "diversification"? AT
As all of the investment guidelines
they say - do not put all your eggs in one
basket, but what does it mean in reality?
The author had a client who was arranging
of its assets in five different banks and
He called himself a "diverse".
Diversification means balancing
risks in his portfolio by combining
investments, which are different from
other. This is a good way to find a way
growth while minimizing the overall loss of
year after year.

4. Rethink
their attachment. The author talked about it
before in my blog, and here again
It emphasizes the idea. cash -
it is not an investment strategy. People
know it, but the store at the cash
money, because they think that it
safer. They thereby ignore
Risks for future purchasing
the ability of the money. Not only that,
cash does not give
little or no income, they can
lose its value because of taxes
and inflation. Of course, inflation can be
low today, but even par
border inflation may indeed
hit over time your savings.
If you're holding too much money,
it's time to think about how to get them
work for you.

5. You do not need
to do so: select-and-forget. there is
even the old rule of thumb: you
You should have the same percentage of bonds
in your portfolio, how old you are. So
that if you are 40, the rule states that 40%
Your investment portfolio should consist
of the bonds, and the rest - the shares. But
This, of course, a simplified version. it
if you do not take into account changes
in the market environment, not to mention his
life and circumstances. successful
investors in full and with optimism
involved in your financial life. it
does not mean that we should be a day trader,
but the owner of your financial
future. So make the most of
them.