Top 10 Investor Tips to Know

Investor tips can be very helpful for anyone who has invested money. The top ten investor tips can help new investors learn about financial planning tips and investment options and mistakes. Many seasoned investors write columns and articles outlining their top tips and blunders, to help other investors follow or avoid these same moves.

#1. The number one investment tip is to be well diversified. Never put more than five percent of your investment portfolio into any one investment, whether it is a stock, bond, or any other type. Putting more than five percent of your investment capital into one investment is placing yourself at a much higher risk for losses, because a good portion of your investment capital is riding on the success of that one investment.

#2. Be patient. It will take at least three to four months to build a strong investment portfolio, with around twenty five different investments so that the portfolio is well diversified. You do not want to jum into the first investments you find. It takes time to find and research quality stocks and build up a well diversified portfolio that is a winner.

#3. Be prepared for the worst. This means know ahead of time what needs to happen to make you sell an investment. As long as the investment quality stays the same, you should hold on for long term. If the underlying quality of the investment changes, be prepared to sell.

#4. Diversify asset classes within the investment portfolio. Diversity means all the way across the board. Do not put more than ten or twenty percent of your investment capital into any one asset class, in addition to no more than five percent into any one asset.

#5. Choose no load mutual funds when possible. These mutual funds have low or no commissions or fees involved, so they actually have a lower total cost than load funds. This will save you money and give you a better return on your investment.

#6. Pick your trading strategies and stick to them. At times you will be tempted to go against your strategies, but don’t do it. This increases the risks of a loss, and is usually a big mistake. This is why you have investment strategies in place, because they minimize your risks.

#7. Never invest capital that you can not afford to lose. No investment is guaranteed against any loss, although there are some that are extremely secure and are close. Never use funds that you can not afford to lose without your quality of life being affected.

#8. Any market can be a good market with the right strategies. It doesn’t matter if there is a bull market or a bear market, if you use the right techniques and strategies then you can make money on your investments. Do not let a particular market type scare you off, instead change your strategies to reflect the market.

#9. Do the research. There is no shortcut around this one. To find quality investments and use sound financial planning tips, you must do the research and ensure that the investment is a good one. Do not follow hot tips or inside information, because most of the time these turn out to be a flop. Do the research instead before investing, and you will have a portfolio full of solid investments that are sure to make money over time.

#10. Buy and hold. Use long term investing and sound financial planning. There are investors who perform day trading and other short term trading, but these are extremely risky. Most individuals invest to save for specific reasons, like retirement or the costs of children and college. Use research to find high quality investments, and then make your investments with the strategy to hold on for the long term.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.