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Investing for Beginners : 5 Habits of Successful Investors

Wednesday, October 24, 2018

Especially for beginner investors, did you know that one secret of the rich to maintain their wealth is through investment? In 1995, Jeff Bezos's parents invested the US $ 250,000 in cash to Amazon, their son's company. According to The Telegraph, the invested money is now worth the US $ 30 billion. After 25 years, the investment grew by 12 million percent of the original investment value. Really interesting right?
However, not everyone can invest appropriately and profitably. Beginner investors still have to learn many things to ensure profitable investments. Then, what are the habits that distinguish successful and not-so-successful investors? Here we will describe the five habits of successful investors that you can apply. 
1. Build a long-term financial plan
For most people, investment is not just about making as much money as possible, but to achieve goals such as having a dream home and a good retirement plan. By having a long-term financial plan, you will be able to design your future goals and have more motivation to set your money aside to achieve these targets.
2. Always learning
In investing, sometimes you experience profit and loss. This especially rings true as the local and international stock markets are very volatile. To minimize loss when investing, you need to increase your knowledge of the sector that you invest and routinely update the news regarding the stock market conditions. One of the secrets to success like Warren Buffet is to have a good morning routine. Warren Buffet has the habit of waking up at around 4 am than spend time reading books, newspapers and articles on the internet. From political issues to finance, Warren spends his time understanding these issues. A successful investor will undoubtedly consider many things before finally buying a stock.
3. Be very careful when using the money
The more skilled someone is in investing, the more they will understand how valuable money is to use. A successful investor will be very careful when using the money to maximize it. They will be able to distinguish between their desires and needs, which ones are an investment and which ones are only speculations. They will use the money for something they really need.
4. Know the risk, and take it. 
Investing has its risk, such as when stock prices suddenly fall, and you have to bear the losses. This is often why people are reluctant to start investing. However, becoming a risk taker when investing is important as long as you already considered it wisely. Be brave! Carl Icahn, for example, is an investor who dared to take risks by investing in the lesser-known company. In fact, he eventually took over some of those companies. However his risks have paid off as now Carl Icahn is listed as one of the richest people in the world and the most influential in the world of investment, especially in Wall Street.
5. Sharpening a diversification strategy
"Don't put all your eggs in one basket", a successful investor often hones their diversification strategy. Investment is not only focused on one instrument but also distributed to several other instruments. Although this strategy does not always guarantee profits or avoid losses, it can provide risk trade-offs and reasonable rewards. By trying different diversification strategies and continuing to hone the strategy, you can find a successful tactic for your investment.
Well, that is five habits that you must apply to become a successful investor in the future. Investing for beginners is a learning journey. Good luck and happy fighting!

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