Experienced investors know that navigating the market takes time, discipline and plenty of strategic thinking.
But what if you’re newly embarking on this journey and expecting quick results?
Here are some essential habits that you should adopt straight away if you want to maximise your returns.
Avoid short-term thinking
It’s easy to react to bad news, alarming headlines and market fluctuations with a sense of fear and panic. But you can’t let emotion influence your investment decisions, as short-term market movements don’t necessarily mean anything further down the line.
Embrace a long-term perspective, and focus on fundamental factors instead of responding impulsively to the latest developments in the market.
Review and rebalance your portfolio
Make a point of reviewing your investment portfolios every few months and assessing how well different asset classes are performing.
You can then rebalance allocations where necessary and realign your investments with your evolving financial objectives.
Regular reviews also give you a good opportunity to assess your exposure to risk, and diversify your investments so you can mitigate the impact of any market fluctuations.
Set clear goals
It’s hard to properly assess whether your investments have been successful if you go in without a clear idea of exactly what you want to achieve.
You should therefore set clear goals that follow the SMART model – objectives that are specific, measurable, achievable, realistic and time-sensitive.
Only then can you have a firm view of your endpoint, track your progress as you work towards this objective, and adjust your strategy if you find yourself falling behind.
Educate yourself
Stay up to date with what’s going in the wider market, such as trends, financial instruments, industry news and investment opportunities.
By having an informed and accurate view about what’s currently happening, you’ll find yourself in a much stronger position to make the right investment choices, capitalise on growing markets and asset classes and enjoy a healthy, sustainable exposure to risk.
Speak to a professional financial adviser
Navigating complex markets and getting your head round the vagaries of the world of investing can be daunting and overwhelming, even to the most experienced of investors.
But you don’t need to do this alone, as a professional financial planner can offer valuable expertise, guidance and insights to point you in the right direction.
They can also work with you to devise personalised investment strategies, based around your specific needs, goals and circumstances, and help you act objectively at a time when emotions may be running high.
If you have any questions about managing your investments and updating your strategy, please don’t hesitate to get in touch with our friendly team of specialists, and we’ll be happy to speak with you.