No matter how well your investments may be going, there is always room for improvement. There's always something that you can learn from other investors in any field--after all, watching your competitors is always the best way to learn. You can avoid masking the same mistakes that they've made and even commandeer their successful strategies for your own benefit. These are five things that you can learn from other top investors to help you improve your own portfolio.
Buy and Hold Good Stocks Over Trading Fast
Many investors would rather have their money go through the market and back into their pockets in a rapid-fire manner. While this can be a good way to turn a profit on stocks, you should hold on to stable stocks to limit a risk in your investment portfolio. They're a good way to keep a hold of some wealth while you experiment with another segment of your wealth.
Keep Up On Your Quarterly Statements
Use these to monitor your fees and back out of areas that are becoming too expensive in order to manage your money better and maximize the returns going into your pocket. Banks and brokerages know that not many people read the statements that are sent to them, so be one of the few that is in the know on information that is publicly available!
Do Not Buy Into Hot Stocks
Just because a stock is doing well one year does not mean that that track record will continue in the future. In fact, a stock peaking radically one year generally means that it will crash in a few years to come--many "hot stocks" of the year can be risky investments in the future that become worthless stocks in good time.
Diversifying Your Portfolio Is Not Hollow Advice
Though you have heard it time and time again, you can always improve your investment standing by diversifying your portfolio. This does not mean just having stocks from different areas of the market, but it means diversifying your sources of wealth (having mutual funds in addition to single stocks, venture capital, et cetera) as well.
Raise Your Exposure to Surprises That Will Increase Your Wealth
Sometimes taking a small portion of your wealth and investing it into a risky area can expose you to stocks that will raise exponentially in value. Though this is not how you should rely on making your money on the market, it definitely has its place in increasing your invested wealth.
When it comes down to it, there are plenty of tips and tricks that you can take from other top investors to increase the value of your own investment practice, but the five tips listed above will lie at the core of other more tailored advice for where your investment portfolio is focused. By adhering to these five tips, you are sure to find success in your investments, no matter what the state of the market is!