How can i be a successful investor?

how to find out what you want to invest in

There are investors and speculators. A successful investor is not a speculator. He/she is an investor.

Some people are successful investors investing in mutual funds. There are many mutual funds that have shown an annual return over a long period of time of as high as 12%. There are however many others that have not.


The government has given people the ability to place money into a Ross IRA account and/or a regular IRA account. Both are tax advantaged and should be used by all investors. My personal preference would be for the Ross IRA because all earnings from that account are tax free. At least until congress changes the law.

When investing in stocks or mutual funds, the key to being successful is to do your homework and to avoid what I would call bubble investing--investing in hot issues. What is hot today invariably tomarrow might be very cold. Another key is diversification. That way one mistake will not ruin you. And all investors make mistakes.

Look up Suze Ormann on google. She's an investor and has a show on MSNBC. She's very smart and she knows what she's talking about.

You should know what you see as a acceptable risk/return ratio first. Knowledge of the market(s) you would decide to invest in would be another must. Don't invest with money you cannot miss.

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If u really want good answers, please elaborate.

Several factor one would like to know

age
fincial status (& your independence)
your attitude towards risk-taking
your financial needs (short term / long term)
any investment avanues you have on the job (PF / 401K types)
The expected yield you are looking any (any benchmark in your mind
etc

stay away from stock market

First you need to define what "success" means in your life. If you don't know where you are going, how will you know when you get there?

Once you know where you want to get to, you can then work out a game plan to get there. Everything starts with a plan.

Read any "retirement" or basic "investment" book and somewhere in it's pages it most likely will tell you the two keys to successful investing are;
A. The proper "asset Allocation" with diversification.
B. Low fees.

Statistically these two items are more important (over time) than picking the right stocks &/or Mutual Funds.