5 Habits of Successful Investors

If you were to take the time to look at someone who’s very successful you would find that, no matter what they do, they have certain habits that they never break, and those habits are the backbone of their success.

It’s the same thing with successful investors; they do certain things habitually that lead them to success. With that in mind, below are 5 Habits of successful investors that, if you want to be successful at investing yourself, you should definitely copy. Enjoy.

Habit #1: Successful investors save regularly. If there’s one key to being a successful investor, it’s that you need to save money all the time, even if you have to force yourself to do it. What we mean by that is setting up things like payroll deductions and scheduling online transfers so that your money is saved for you automatically.

Habit #2: Successful investors are extremely patient. While you definitely want to monitor your investments, keep an eye on your credit reports, watch the stock market occasionally and keep abreast of what’s going on, the best thing you can do is sit back and let the market, and your investments, take care of themselves. Long-term investors have always done well, historically.

Habit #3: Successful investors create a strategy, set goals and take action.  Have you ever written a to-do list? That’s what successful investors do all the time, and then take action on the things they have on their list. They create a strategy, based on their knowledge of the market, and take action on that strategy. If it doesn’t work, or needs to be changed, they make those changes.

Habit #4: Successful investors do their homework. Let’s face it, investing isn’t easy and being successful at investing is just plain difficult. You can make it a lot easier by doing your research, reading white papers, attending seminars and otherwise educating yourself. There’s so much information out there, and so many viable information streams available, that there’s really no excuse not to. Successful investors are always increasing their knowledge so that, if an opportunity arises, they can make a decision and take a vantage of it.

Habit #5: Successful investors know went to say “no”.  Habit #4 is very important for this habit, because an educated investor will know when an opportunity is a good one, and more importantly, when it’s not. Being able to say no and not second-guess yourself is extremely important, maybe even more important than being able to spot an excellent opportunity and take advantage of it. The reason is simple; a good investment will make you some money, but a bad investment might lose you a lot of money.

Your website has been shifting product like hot cakes, you’re staring at the big bucks and it doesn’t seem as though demand is tapering any time soon – but you’ll need a business property if you want this success to continue.

Indeed, while the web can help you reach a global audience, your market reach will always be tempered by giants like Amazon or Play. Small web companies are destined to become little more than boutique enterprises without some presence in the real world.

But finding a shop to let can help you reach a local audience and give your service a greater level of respect than a lone wolf operating from their bedroom can command.

There are, however, an almost endless number of perils and pitfalls when searching for a property. So when you’re taking on such a major outgoing, what should you consider?

Location is everything

Imagine a vintage clothing shop in an industrial park, or a funeral parlour in the nightlife district. They’re about as likely to succeed as a unicorn is likely to appear in your local branch of Morrisons.

Before you sign a lease, consider how much of your demographic will actually appear in your chosen location. More than this, know your nearest competition. Is it really worth investing in a prime city centre location when a similar, better established shop is just around the corner?

While your website will appeal to anyone making the right Google search, your business has to be able to reel in casual browser off the street. So make sure you choose the perfect location.

Sharing’s caring

As the internet comes to dominate the mind of shoppers, high street stores have been closing their doors in increasingly large numbers. Store closures trebled last year, with the retailers most severely hit being usurped by their web-based counterparts.

But some savvy businesses have figured out that they need to team up if they want to survive, by offering a service that the net can’t compete against.

Take Waterstone’s as the perfect example. Learning that their customers favour a fresh cup of coffee with their purchases, they teamed up with caffeine experts Costa to share their retail space – and their strategy is keeping customers in-store for longer.

Take a leaf out of their book and join forces with a business to complement your own. It’s almost guaranteed to boost business.

An atmosphere that sells

Ambience is everything in a property. Do you want the cold clinical air of a chain supermarket? Or the kind of warm style that could make customers mistake your company for a sultan’s palace?

Look at your demographic to find the answer. Are they hip and happening, suited VIPs or blue-haired grannies? If you already know, you’ll be able to mould their values to your shop’s design.

As a beginner investor it’s sometimes difficult to determine where usually start, or what investments you should start with. Should you start with stocks or bonds, or should you open an IRA or possibly purchase an annuity?

One thing you definitely need to keep in mind is that every investment you make comes with a certain degree of risk. For example, most securities aren’t insured by the federal government. If they fail, you lose your money, even if you purchased them through your bank or credit union.

Below are a number of the most important questions that you need to ask, and answer, before you begin investing.

Question 1: Why are you investing your money?

Are you investing because you want to save up the money you need to purchase a house? Maybe for your retirement or to pay for your son or daughters education? This is an important question to ask before you begin because it will lead you towards different investing options.

 

Question 2: What is the timeline between investing and getting your money back?

If you invest in stocks, bonds or mutual funds, you can sell them at any time you wish, although it’s not guaranteed that you’ll get back all of the money that you paid when you purchased them. Other investment options limit you as far as when you can sell them. Point being, if you need your money back right away, or if you don’t need it for years and can let it accrue interest and revenues, your investing decisions will be different.

 

Question 3: How much risk are you willing to take with your money?

As we said at the beginning of this blog, every investment comes with a certain degree of risk. A high-risk investment usually has a higher reward, and vice versa. For example, a savings account at a bank is protected by the US treasury. It’s very unlikely that you’ll lose your money if it’s in a bank account, but it’s also very unlikely that you’ll make any money with your money. In fact, most banks don’t pay enough interest to keep up with inflation. Bonds are a bit more risky but still relatively safe while other investment options like stocks pay-out much better but have the highest risk.

 

Question 4: Is your portfolio diversified?

Diversification is one of the most important facets of investing. If your investments/portfolio are well diversified you’ll be much safer during and economic downturn or if one or two of your stocks or other investments fails, because the others will still be going strong.

Could LifeLogger be the next GoPro Stock?

When it first opened on the market, GoPro stock was at $30. Two months later it was already at $95 and, for those who missed its IPO, they were left sitting with their hands in the air, wondering what happened.

Most people now know about GoPro, the extremely small, durable and handy video device that’s taken the world by storm, but very few have heard about LifeLogger (LOGG), wearable technology that some analysts are calling the next big thing in the high-tech industry.

Here’s a question; what’s the actual percentage of your life that you actually remember? Scientists say that it’s approximately 0.001%, and that’s if your memory is really great.

Many people would like to be able to remember more of their lives, and extreme sports enthusiasts have definitely used the GoPro to do just that. But what about everyday life? What if you wanted to record everything that you did all the time so that, if you wanted to recall something extremely specific at a later time, you could?

That’s what LifeLogger promises.

In fact, LifeLogger was just named among the Top-5 startups by entrepreneur.com, even though the technology promises what seems like something out of a science fiction film. The fact is however that the wearable technology industry it Is expected to explode in the next few years, and reach $20 billion dollars by 2018.

LifeLogger has already recognized this fact and allows users to record their lives with a wearable Point Of View (POV) device that records everything they do and say, and then uploads it to the cloud where it can be processed and stored.

This “processing” consists of extracting things like the faces of people you’ve seen and converting the words that you said and heard into a searchable text database. While this is happening your GPS coordinates are also recorded and even the direction that you’re looking at the time is recorded as well.

Like we said, out of a science fiction film.

It’s being called “augmented memory” and analyst predict it’s going to be huge. So, if you missed out on GoPro’s IPO, keep an eye out for LifeLogger when it opens. It might just be the next big thing!

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