8 Tips for Successful Investing. Number 5 is a Must.

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If you have not started investing, learning the basics should be at the top of your priority list. I’m not saying it has to come before your family, but financially, it should be pretty high up there.

Sometimes the hardest part about getting started is just getting started. Why not start with these 8 tips?

In no time you will be a savvy investor ready to tackle stocks, bonds, mutual funds, ETFs and any other asset that comes your way.

1) Be consistent

Investing is all about consistency. There are really great tools that allow you to invest as little as you like in a stock. The key is to repeat this schedule on a weekly, biweekly or monthly basis.

Successful investors don’t bother with timing the market and instead invest on a consistent basis. The consistency will keep your portfolio growing.

2) Surround yourself with other investors

It’s important to ‘talk shop’ as often as you can. Preferably with someone who knows more about investing than you do. That way you can benefit from their knowledge. The key is to avoid taking advice.

Instead, try to find a community of like minded investors. You can do so for free through Facebook or even Meetup.com. You don’t know what you don’t know. Getting input from fellow investors will help you build your knowledge base.

3) Focus on one asset class or industry

Smart investors focus.

By becoming an expert in your chosen field you will know how the news will affect your specific asset class or industry. Some investors focus on a specific set of stocks, others choose to invest passively.

Whatever you choose, become an expert at what you do.

It will help you eliminate the risk of loss. If you decide to focus on mutual funds, borrow every book that discusses them. Become a sponge. And don’t let a drop of knowledge escape.

4) Test your strategies

Before you throw any money in your account, you should test out your thoughts with a demo account. It’s a great way to get a feel for the process. For stocks, Yahoo Finance has a great practice account.

A free paper trading account simulates the way the real stock market works. Interested in real estate investing? Follow bloggers that discuss their real estate deals.

5) Save 10% of your income

Saving 10% of your income as a habit will help you grow your assets easily. Every great investor needs a good flow of cash to make their investment decisions.

No cash, no assets.

6) Don’t Follow the Crowd

Just because a news anchor says buy! buy! buy! doesn’t mean you should go right out and load up on the latest recommendation.

Sometimes going against the crowd can make you more money. Or, try researching one of their competitors to see if the competition may be a better investment.

7) Read Daily

Get in the habit of reading financial news each day. News of an oil spill might be devastating but the financial angle on the story could help you protect your portfolio.

It’s important to stay updated on the latest news. CNBC, the Wall Street Journal and Bloomberg are good places to start.

8) Do Your Own Research

It’s dangerous to blindly follow another’s advice. You should always do your own research even if it’s just to check on the credibility of the speaker.

Morningstar.com offers great tools for researching stocks, mutual funds, options and more.

If you apply these 8 tips you will be sure to be a financial success while growing your assets and your portfolio!

If you’re waiting for a sign that it’s time to make a change, consider this it. Money Therapy may be just what you need to break through your financial blocks and release your money guilt and shame.   

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