Successful Long-Term Investing

by Charlotte Wood
(last updated February 21, 2009)

Investing is one of those money games incorporating both skill and chance. You can strategize and scheme and buy and sell all you want, but sometimes fate has an unfortunate habit of stepping in and undoing everything you've worked hard to build. This risky game of uncertainty holds a certain appeal for some and for many it's a fun game that you can either base your entire net worth and more on or you can just dabble; either way investing is a gamble game and one, if you're interested in long term options, you need to understand and know a few invaluable tips.

First and foremost you need to acquaint yourself with the market and the economy. Familiarize yourself with the stock market and seek the opinions and advice of successful investors. Investing can be a top way to make your money if you play your cards right. Once you know the market and the trends, being able to spot patterns and interpret fluctuations in the economy you can start becoming serious about being a long term investor.

Use shrewdness when investing. Don't hold on to stocks just because it looks like a worthy investment on paper. Sometimes you just need to let it go, accept you've made a loss, and move on. Holding on to worthless and stagnant stock is no way to reap a dividend. Conversely, don't discard the smaller investments that show promise. Even if a stock isn't necessarily growing by leaps and bounds, but is still successful, you don't have to sell it in favor of a more "established" stock. Honing this mentality and skill will take time and experience; you'll have to win and lose to find the loopholes and hidden intricacies of the game.

Don't go for the penny stocks just because they're cheap; these are usually less stable and just because it's initially inexpensive doesn't mean it's a good investment. Also don't be the one who always streaks after the latest "hot tip" or more realistically red herring. You can't rely on the tip offs of others; do your own research and make your own judgment calls. It's your money—you should know exactly what you're doing with it.

Along with doing your research and getting to know the market, don't be afraid to invest in a less-known company. Not all of your investments need to be big, widely known companies; some of the best investments come from companies that stay out of the limelight and just do their business. Never underestimate the non-household name.

Once you find an investment tactic that works for you, go with it and try not to stray from it too much. An indecisive investor is not a successful long term investor. Also remember that the majority of your decisions are based on what's happened in the past, but the decisions you make regarding your investments are dependent upon what will happen, the future. Just because a company has done poorly in the past doesn't mean they won't boom later and vice versa.

Successful long-term investing doesn't happen overnight; it takes time and patience and experience. You can be a successful investor but you really just need to learn the tricks of the trade and find your own investment style off which to operate. Here's to high dividends!

Author Bio

Charlotte Wood


Is There a Benefit to Organic Makeup?

Organic makeup may sound like a new age fad, but it may actually have its benefits. Take a few minutes and read up on the ...

Discover More

Avoiding Mortgage Fraud

Mortgage fraud is one of those types of swindles that you don't always think about or catch, but one you most definitely ...

Discover More

Understanding Capital Gains Tax

Capital gains tax is one of those terms you probably don't understand, but one you probably should if you want to go into ...

Discover More
More Money Tips

Investing in Currency

Investing in currency in an area of investment most don't usually think about but one that can yield high balance results ...

Discover More

What is a Hedge Fund?

A hedge fund is an investment fund that seeks to limit risk by hedging their investments using a variety of methods, most ...

Discover More

Rolling Over Your IRA

You should roll over old IRA and 401(k) accounts into new IRA accounts. This will increase the amount of control you have ...

Discover More

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is seven more than 6?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)