BigNews.Biz - Apr 12,2012 - Niigata Global looks at some of the principals investors can apply in order to become more successful. There is no great secret to investing, just a few sound principles and keeping things as simple as possible.
Identify your risk profile. How much risk you can absorb will depend on a great deal, such as your age, health and personal beliefs. Identify the amount of risk you can be exposed to and invest accordingly.
Begin your investing career early. Even if it is only a small amount, the earlier in life you start the better. The great secret of investing is the power of compounding, the longer you invest for, the greater will be your returns.
Keep expenses low. Niigata Global has long advised clients about the dangers of investment costs. Remember that because of compounding, a penny saved now will be worth so much more than that later. Eschewing expensive mutual funds in preference for low fee index funds is one easy way to avoid excessive fees.
Don’t let emotions rule you. Make an investment plan with well defined goals and then stick to it. Emotion is without doubt the biggest enemy of the individual investor, it causes them to buy high and sell low.
Time in, not timing. Investing is about longevity and not about picking the right time to act. Don’t try and beat the market but let it do all of the work for you.
Niigata Global believe that following simple guidelines like these can enable anyone to be a successful investor.