4 Tips for long-term investment success

Forget about the hot tip.

Whether the information you receive is from your mother, your brother, your auntie or uncle, your neighbour or even your broker, you shouldn’t automatically accepted it as fact.  When making any investment, it’s important for you to know the reasons for doing so; do your research carefully, as it is your hard earned money that you are putting at risk.  Simply relying on information supplied by someone else, makes investment gambling rather than a carefully thought out and well researched plan of action.  Occasionally, tips do work out, but for the well-informed and experienced investor, no tip is a long term investment strategy.

Don’t stress about the small stuff.

Always keep the big picture in mind and don’t stress when your investments experience short-term downward movements.  If you have done your research properly and not followed the latest fad, you can be confident in the quality of your investments rather than being nervous about the inevitable volatility of the market in the short term.  The fact is that many traders take advantage of these day-to-day and minute to minute fluctuations as a means to make gains.  But the long-term investor has educated himself and has developed a real overall investment philosophy.

Decide on your investment strategy and stick with it.

Different people use different strategies to achieve their investment goals, and there are many strategies.  With the research you have done you should have developed a strategy that suits you.  Many investors drift between different stock picking strategies and invariably experience the worst, instead of the best of the market and of each strategy.  Switching strategies makes you a market timer and history has shown that this is one strategy you really want to avoid.

Focus on the future.

History has shown that long-term investors always make the most money, but the tough part of a long-term strategy is making decisions today about events that are yet to happen, and we all know that no one can predict the future.  The best way to ensure long-term return in the future is to focus on the fundamentals of the stock you wish to buy.  Again, this means doing your research properly and carefully taking as many factors into consideration as possible.  For example, you may want to look at the company’s product and determine what the long-term future of that product would be or you may want to look at what the potential future market of the company’s product could be.  Careful research will help you make tough decisions, much simpler.

There are many more tips than just these 4, but if you are aware of these issues, you will be successful in your investing.

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investment in success, future, strategy