Six Principles of Successful Investing

1. Begin investing immediately

Procrastination is the number one enemy of investing. An early start in investing can make an enormous difference as the investor will be able to truly reap the rewards of compounding over a longer period of time.

2. Invest for the long-term

Do not be influenced by short term market fluctuations. These are inevitable. Over the longer term, investments increase in value.

3. Appetite for risk

Your appetite for risk determines the type of investor you could be. The younger you are, the more aggressive you can be in your investment strategy. You could undertake a greater amount of risk. It also depends upon your personality profile.

4. Invest in stocks

Amongst all investment vehicles, stocks have provided the highest return over the long term. Stock investing requires patience and discipline. Stock prices are influenced by short term market fluctuations which may make them volatile. However, over the long term the market recognizes the underlying value of a stock and prices it accordingly.

5. Evaluate your current financial situation

Understanding your current financial situation will help you to sort your finances. This will require you to assess your net worth which the results of the value of the assets that you own less the amount you owe to others. Never invest in anything that you do not understand. Keep aside easy accessible funds equivalent to three to four months of expenses for emergencies. If you are burdened with high interest debt, free yourself from debt before you begin investing. Use budgeting as a tool to control your expenses and for providing you with sufficient funds for investing.

6. Use a financial advisor

If you do not have the time or the inclination, consider using the services of an independent financial advisor. They are certified professionals having in-depth knowledge of various investment vehicles. However, remain involved to some extent to ensure that your money is being invested wisely.

Read More Free Investment, Wealth Creation & Personal Finance Articles & Tutorials at: http://www.global-investment-institute.com/

The Global Investment Institute has been setup to aid people in the pursuit of a better lifestyle through managing their money effectively, investing wisely and wealth planning for their future.

---

Investing In or Owning Drug Lab Properties

Clean Up (includes the insides and the outside of a... Read More

Chinas Inscrutable Currency Strategy

Purpose: Expose Opportunities for Smart InvestorsThe move by China's central... Read More

Stocks, Oil, and Bonds

A barrel of oil bounced to over $60 Thu, which... Read More

Can Using Sales Leaseback Method of Investment Property Acquisition Reduce Risk?

Sales Leaseback compared to traditional property investmentCan a Sales Leaseback... Read More

Why the Rich Keep Getting Richer

Rich people: fortunate, lucky, selfish, and arrogant? Or highly educated,... Read More

What Is A Fair Market Value, Really? If Youre Going To Trade, Be Sure Its Worth It!

I've been involved in online trading, specifically with stock and... Read More

Pros & Cons of Investing in Bonds

What are Bonds?A bond is a debt security, by which... Read More

The Economy Is Not The Stock Market

Several days ago, the Commerce Department reported that May's factory... Read More

Discipline in Investing and Trading

Discipline can be simply defined as your ability to follow... Read More

The Myth of the Earnings Yield

AbstractA very slim minority of firms distribute dividends. This truism... Read More

Before You Start Investing

There maybe several reasons why you to want to invest... Read More

HYIPs Investments or Scams?

High Yield Investment Programs (HYIPs) appear at first to be... Read More

Going Offshore For Asset Protection

There are a number of key reasons why individuals and... Read More

Powerful Hidden Techniques Mystery Formula - The Covered Call Option Trading Buy-Write Strategy

For better or worse, most option trading investors purchase stocks... Read More

Preparing to Invest: How to get started

Investments can be a source of great potential earnings. The... Read More

How to Buy to Let

Find out everything you need to know about buy to... Read More

Global Markets: A Window on the World Economy

Expectations drive the market. Every stock price is driven by... Read More

Will a Falling Dollar Derail Your Plans for Retirement?

How much are you willing to pay for a tank... Read More

It Must Be Joe Cockers Market

Agonizing displays of poor theatrics failed to entertain my mind... Read More

Out-Of-State Investors Check List of Questions

The following lists of questions are suggested questions to ask... Read More

For Entrepreneurs A SIMPLE Plan May Be Best

Q: I own a small decorating business and I'll be... Read More

Asset Location ? Increase Investing Returns & Reduce Your Taxes

Location ? Once the holy grail only for real estate... Read More

What is an Investor Ready Business Plan

A Business Plan, as all good entrepreneurs starting out in... Read More

Annuity Help

Many people today are looking for annuity help. The biggest... Read More

Trading Commodity Futures Using Support and Resistance - Paper Trading

Setting Up a Paper Trading AccountQuestion: I cannot trade with... Read More

How Do I Start Investing Online and What Are Some Basic Tips?

If you are new to investing online, don't put your... Read More

Fundamentals of Option Pricing

When one begins to consider an option, it is very... Read More

Investing Offshore for Retirement

As an expatriate you are in a privileged savings and... Read More

Introduction To FOREX

The Foreign Exchange Market, better known as FOREX, is a... Read More

Find Your Investing Soulmate on the Jersey Turnpike

As a followup to a previous column, "Irreconcilable Differences," I... Read More

Overbought/Oversold

Has your broker ever told you that a stock is... Read More

Investing Online Has Its Rewards: Find Out How To Take Advantage Of Them

Computerized investing. Online investing. Have you taken the next step... Read More

Asset Allocation Lessons: The 70% Inflation Solution

For investors only... and for speculators who need to invest... Read More