It is almost impossible to tell when the perfect timing in investing is. It is a different situation if you have a time machine or a crystal ball, but sadly, those don’t exist. Waiting for the right time to invest is also hard to do, because you might be waiting for that perfect moment without realizing that it just slip right by you.
Of course, if you get too aggressive in investing, it might also lead to regret. Instead of finding the right time, why don’t you just stick with staying power and discipline to achieve success in investing? Here are some tips that can seriously boost your returns during investment.
Before we begin, however, feel free to go here to learn more about investing in general.
Diversification
Choosing and owning a variety of investments will definitely be a smart move on your part. Many investments affect each other, like if bonds increases, it will affect other investment like shares to go down. If you own both of these investments, you can gain from bonds and you can absorb the losses from the shares.
Dollar costing averaging
For those who do not want to take high risk in investments, you could try the “dollar costing averaging”. This requires you to contribute to your portfolio at different prices over a period of time. By making small and often contributions will spread out the cost of investment. This will even out the highs and lows of the average overall price.
Discipline
Being well disciplined and having patience is what long –term investor have compared to amateur investors. Amateur investors tend to panic a lot and make wrong decisions that could lead to their down fall. Making them sell their shares to its lowest possible prices if shares plummet down. While professional investors will just calm down and review and monitor their portfolio. Many who stick with their original investments gets the highest benefits compared to others. It is advisable to not let emotions take over you because this will lead you to make very bad decisions you will eventually regret.
Review and research everything
You cannot just load investments in your portfolio. You must be smart to what kind of investment you are going to push through. Investments are like plants which need to be take care of properly and should be nourished with much attention. If ever you made a mistake, everyone makes a mistake every now and then, better make sure you do not make the same mistake twice! Professional investor would never make the same mistake twice because they learn from it. It is wise to review your investments thoroughly every month or so or even weekly, just to make sure you know every inch of it.
So to sum this up, the secret to good investing is thinking ahead, discipline and make sure that your portfolio does not have any unrelated asset classes and better make sure to think long term. Do not wait for the right time, if you found an opportunity, seize it if you see it is worth it, and do not let this become a missed opportunity.