Tips for successful investing

Studies of the most successful investors show that they all share certain similarities in the way that they invest. Learning these tips can help you to benefit from their experience and their success. Here are some tips for successful investing-

• Read all of the available literature-You should never consider investing in anything that does not have sufficient literature to back it up. Requesting all of the available materials about the investment, is the best way to show that you are serious about the investment and gives you the best chance to learn all you can about it. Make sure that after you have received the materials, that you read everything that you have been given. This is the best strategy, for helping you keep your emotions, out of your investment decisions.
• Diversify your portfolio-Even those investors who choose to take on the investments with the highest risk, will add some diversification to their portfolio. You should make sure that you have the right amount of asset allocation that fits your tolerance for risk. By diversifying your investments you will be able to reach a mix of investments that can meet your investment goals, without exceeding your risk tolerance.
• Try to ignore the media-Many investors get caught up in following the market on a day to day basis. Keep in mind that it is the job of analysts and others to make estimates, give predictions and offer opinions, however, that alone should not determine the direction of your investing. It is important to understand that this type of information can be confusing and overwhelming and investors often do better by just ignoring it.
• Know what you are investing in-You may be surprised to learn that some of the world's most experienced and successful investors have walked away, from investing in something, they didn't understand. The bottom line is that after you have asked all the necessary questions and read the available literature, if you still don't understand the investment, then you are better off walking away from it. You need to make sure that you have a clear understanding of exactly where you are putting your money and what the potential really is.
• Contribute on a regular basis-The best way to build your portfolio is to contribute on a regular basis. While it can be hard to make a huge lump sum investment, putting in even a few dollars on a regular basis, can go a long way toward building wealth. One of the best ways to do this is to set up an automatic withdrawal from your paycheck that goes straight to your investment account.
• Stick with well known investments-Many people are lured in by exotic or unusual investments. If you are an experienced investor you may have the necessary skills to determine if this is a viable investment. However, if you are new to the world of investing, you are better off sticking with tried and true investment vehicles.
• Review annually-Many investors get caught in watching their investments on a daily basis. This is simply not a productive use of anyone's time. The market can shift on daily and sometimes even hourly basis. If you find that reviewing the market causes you anxiety, then you need to train yourself to look away. Investing has an inherent time value attached to it, so you need to be able to put your money into your investments and then leave it. You should only make changes when needed and then this is best done after an annual review. Going over your investment accounts more often and making changes will most likely end up being counterproductive to your end goal of creating wealth.