9 Tips for Successful Investing

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There are various ways to improve your investing and money management. Young Finances has 9 tips to get you started.

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1) Read this blog :)

If you want to be a great investor but you don’t know where to start then you should start with  Young Finances! Start with the post about how a college student can invest to learn the basics.

2) Be consistent

There are really great tools that allows you to invest as little as you like in a stock. The key is to repeat this schedule on a weekly, biweekly or monthly basis. There are some very successful money managers that don’t bother with timing the market and instead invest at a preset time. The consistency will keep your portfolio growing. You can also make automatic transfers into a managed stock trading account. Allowing someone else to invest for you in set intervals will build a steady portfolio.

3) Surround your self with other investors

It’s important to ‘talk shop’ as often as you can and preferably with someone who knows more than you. That way you can benefit from their knowledge. Try to find a community of like minded investors. You can do so for free through Facebook or even Meetup.com.

4) Focus on one asset class or industry

Smart investors focus. By becoming an expert in your chosen field you will know how the news will affect your specific asset class or industry. Some investors focus on a specific set of stocks, others choose to invest passively. Whatever you choose, become an expert at what you do. It will help you eliminate the risk of loss.

5) Test your strategies

Before you throw any money in the ring you should test out your thoughts with a demo account. It’s a great way to get a feel for the process. For stocks, Yahoo Finance has a practice account.  If you are interested in futures and options then OptionsXpress is a good place to start. They also offer a nice demo account along with great learning tools and customer support.

6) Save 10% of your income

This habit will help you grow your assets easily. Every great investor needs a good flow of cash to make their investment decisions. No cash, no assets. Check out the Young Finances Toolkit for help with budgeting and saving.

7) Don’t Follow the Crowd

Just because a “talking head” says buy! buy! buy! doesn’t mean you should go right out and load up on the latest recommendation. Sometimes going against the crowd can make you more money.

8) Read Daily

Get in the habit of reading financial news each day. News of an oil spill might be devastating but the financial angle on the story could help you protect your portfolio. It’s important to stay updated on the latest news. CNBC, the Wall Street Journal and Bloomberg are good places to start.

9) Do Your Own Research

We already talked about the dangers of blindly following someone else’s advice. You should always do your own research even if it’s just to check on the credibility of the speaker. Morningstar.com offers great tools for researching stocks, mutual funds, options and more.

If you apply these 9 tips you will be sure to be a financial success while growing your assets and your portfolio!

Ready to get started investing? Click here to see why I recommend Scottrade.
Want to hire a pro to invest for you? Check out Betterment.

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About LaTisha

"Money is a tool. Use it to get where you want, but don't let it control you."- LaTisha

Author, motivational speaker, entrepreneur. Love to laugh and make others laugh. Focused on helping you build success and stay motivated along the way. Start investing now and let’s build wealth together.

  • http://www.potential2success.com/Wake-Up-Early-Without-Hating-It.html Ralph

    Good tips you have on this site. Saving 10% is crucial! I wish I would’ve followed that advise years ago.

    • http://www.FSYAonline.com LaTisha

      Thanks! I am still working on consistently saving 10 percent and I would like to get up to 25%.

  • http://www.accountantbyday.com Kellen

    Good encouragement to get young people involved with investing. I would add a warning to step 3 though, because there are a ton of investors out there with fancy strategies that your typical young investor doesn’t need. I’d take anything other investors said with a grain of salt.

    • http://www.FSYAonline.com LaTisha

      That’s true. As long as you don’t try to duplicate what someone else does and always do your research you should be ok.

  • Hunter

    These are all excellent pieces of advice. I like the first one! I also like “don’t follow the crowd”. It pays to think. Not enough people take the time formulate their own original thoughts. They just go with what the talk shows are saying. Good arguments.

    • http://www.FSYAonline.com LaTisha

      I can use my own experience to support that. I used to just buy whatever I heard the anchors talking about on CNBC. What a waste of time!

  • http://www.earningdiary.com Lakhyajyoti

    Great advice.I’ll try to follow your advice.Talking with other investors will really help us to improve our investing.

  • http://thecollegeinvestor.com Robert @ The College Investor

    Great tips. I especially like do your own research and read daily. I think it is also important to read a variety of sources, not just a newsletter or one paper.

    • http://www.FSYAonline.com LaTisha

      That is true, especially when each source may have a different take on the same topic.

  • http://squirrelers.com Squirrelers

    Good tips, all of them. I especially like #3, #6, and #10.

    Surround yourself with intelligent people with investing experience, and if they have a somewhat different perspective that you that’s ok, might learn something from them!

    Saving 10% – it’s a great start, no doubt. In fact, save as much as you can reasonably save.

    Independent research – yes, you can’t just follow the herd and take your brain out of it. Even if it’s investing in index funds, at least by researching whether or not that strategy is worthwhile, you’re not following the herd.

    • http://thirtysixmonths.com Marissa

      I am finding there are a lot of people (females mostly) who don’t any thing about investing at all. I think there very intelligent people who contribute diligently on a regular basis yet have no idea what is happening to their money. I am big believer that if you work really hard for your money and want it to grow, you have to be active in that process.

      • http://www.FSYAonline.com LaTisha

        I agree wholeheartedly! It’s really sad that women don’t take a deeper look into finance. Because much of it can be subjective, and women have intuition, we actually have the capacity to be better traders. Check out momvesting.com for more females who invest. Jessica does a great job of making investing interesting for females.

        • http://frugalstudents.blogspot.com/ Ginger

          I’m a little bothered by the idea of investing in one class. This makes you more vulnerable without much benefit. Diversification seems to be a better idea, using index funds so you do not need to do much research.

          • http://www.FSYAonline.com LaTisha

            Index funds are a great way for a beginner to get into investing.

  • Hunter

    LaTisha, Do you have any social share buttons? I would love to share articles like this!

    • http://www.FSYAonline.com LaTisha

      Thanks! I used to have shareaholic but they kept updating the plugin every day :) I’m installing a retweet button now

  • http://www.untemplater.com Untemplater

    Reading and doing research is so important, especially with the volatility in the markets these days. I’m glad the Dow closed above 12k today, by just 4 points lol. The markets have been ugly I don’t even want to look!

    • http://www.FSYAonline.com LaTisha

      Summer is a great time to lose money in the sideways markets! lol I’m sitting out until volume comes back.

  • Shobir | Cold Sore Remedies

    Really good advice but so hard to follow especially saving 10% at the end of each month. I also think you have to be as frugal as possible to save even more. With a few lifestyle changes you can really make a big difference. Thanks for the post.

    • http://www.FSYAonline.com LaTisha

      It does take some time to get into the habit of saving, but after a while it becomes automatic.

  • http://twitter.com/wofbiz World of Finance

    Great tips FSYA!  I agree diversification is key and index funds are a great way to implement this idea.

  • http://twitter.com/wofbiz World of Finance

    Great tips FSYA!  I agree diversification is key and index funds are a great way to implement this idea.

  • http://www.investinthemarkets.com Doctor Stock

    haha… nice plug at the beginning!  I love the idea of testing ideas… before anyone tests invests, they should test.

  • http://www.investinthemarkets.com Doctor Stock

    haha… nice plug at the beginning!  I love the idea of testing ideas… before anyone tests invests, they should test.

  • http://twitter.com/moneycone MoneyCone

    Nice tips LaTisha!  I’d also add, start small and start early!  

  • http://www.moneycone.com/ moneycone

    Nice tips LaTisha!  I’d also add, start small and start early!