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The 25 Habits of Highly Successful Investors
Book

The 25 Habits of Highly Successful Investors

How to Invest for Profit in Today’s Changing Markets

Platinum Press, 2013 mais...


Editorial Rating

7

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  • Applicable

Recommendation

Developing sound investment habits increases your odds of making profitable decisions. Financial writer Peter Sander focuses on the sound habits involved in “value investing.” While learning and applying good investing habits take practice, Sander offers a helpful guide for beginning investors who need a framework for navigating today’s complex investments. Sander distills core value-investing ideas and analytical methods into focused applications – habits – any beginner can apply. While never giving investment advice, getAbstract recommends this easy-to-understand primer to novice investors seeking a lucid introduction to value investing.

Summary

A Matter of Habit

Successful investing requires using a thoughtful process that should become habit-forming. When people develop a habit, they become consistent and comfortable engaging in a familiar activity with a pleasurable outcome. These habits are for long-term investing – usually five to seven years – that are designed to produce some cash, above-average appreciation and risk-averse growth, in alignment with the “value school” of investing. Value-school investors – following the principles of seminal investment expert Benjamin Graham – conduct a fundamental valuation of a business to compare its “intrinsic” value to its share price before they decide to invest.

Developing Your Own Style

Frame your investments in terms of your unique financial and emotional needs and goals, risk tolerance, budget, time frames and experience. Within this framework, you will develop skill with financial tools and analytics that can help shape your habits. Start with investment self-knowledge, which focuses on your goals and your level of tolerance for risk. To understand the difference between investing and trading, examine your life. Have you previously taken risks in ...

About the Author

Peter Sander’s books on investing and personal finance include the 100 Best Stocks series, Value Investing for Dummies and 101 Things Everyone Should Know About Economics.


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    V. B. 3 years ago
    General tips are good. Following these will take some time by these are worth practicing. Investing wisely in stocks is a great skill, but it yields fantastic returns if mastered. Every one should learn these skills to lead a finacial free life asap. Avoid greed at every stage, and set realistic targets to build and retain wealth. Make your life simple and keep your needs and desires in control. Do not compare your wealth with others. Be happy what you have built and manage to live peacefully and happliy in that.