Let me unveil the 10 commandments of successful investing today. These commandments strictly followed can make you a successful investor; make you richer.
The successful legendary investors like Benjamin graham, warren buffet have followed these principles. So why not you…?
Holistic Investment Principles guide investors towards successful investment strategies that create long-term wealth.
1) Decide your investment strategy and stick to it
2) Conduct your own research on stocks
3) Learn to overlook short term fluctuations
4) Resist investing in penny stock
5) Discard the losers and pamper the winners
7) Adopt an open-minded investment strategy
8) Base your investment strategy on the future
9) Consider tax friendly investments
10) Adopt a long-term perspective
Cultivate the Qualities of Successful Investing
An investor may invest in mutual fund SIP and when the market continues to fall he will discontinue his SIP.
But market crash is the right time to continue your SIP. Because, during the market crash you will get more number of units and the averaging works out in your favour.
Another investor may decide 50:50 as his debt: equity asset allocation ratio.
When the market goes up he may want to invest more in equity and hence he may change his asset allocation to 30:70.
Actually when the market goes up one need to reduce his equity exposure to bring the Portfolio back to his predetermined asset allocation ratio.
Don’t change your strategies midway. You know what is best for you and this applies to deciding with foresight the ideal investment strategy for you.
Once the strategy is set, do not fluctuate in your decision each time you decide to invest. This would only mean losses instead of profits.
One of the golden investment rules is to stay consistent with your chosen path, which is the mark of successful investing.
Being an informed investor investing your hard-earned money needs you to ensure if the investment would meet your financial goal.
This could be done through research from various sources.
Successful investors in India always emphasize doing thorough research as part of their investment style.
If you want to be a successful investor, you need to understand that it is futile to be affected by short-term fluctuations of the stock market.
Investing in good and reputed portfolio ensures good quality of your investment and capital appreciation in the long run.
The short-term volatility of the share market has got nothing to do with the long term performance of your investments and achieving your financial goals .
One of the key qualities of successful investing is patience, as short-term market noise should not derail long-term wealth creation.
Some investors have a common misconception that it is better to invest in penny stock than in high value stocks.
This is wrong as whether you buy stock at Rs.5.
You need to see the background of the company before looking at the price of the share.
Rules of investment clearly warn against chasing penny stocks without understanding fundamentals.
There is a tendency among investors to sell off appreciated stock and to hold on to depreciated stock in the hope that it would rise.
It is wrong, as it is possible that the shares which are not doing well may continue to underperform and the shares that are doing well may continue to perform in the future.
It is better to acknowledge you went wrong, swallow your pride and discard the loser stocks and lessen your losses.
Your decision lies in deciding to suffer a one-time loss for future long-term gains.
Successful investment strategies teach us to let the winners compound and to cut the losers early
Even good company shares bought at the wrong price can be a poor investment choice.
So devise some strategies like SIP , asset allocation to avoid this mistake.
Successful investment strategies remind us that timing and valuation matter as much as stock selection.
It may be advisable to consider investing in good companies, however it is wrong to overlook the point that small start-up companies would make losses.
Even such companies with good strategies and growth plans could contribute to long-term capital appreciation.
Always have an open mind in taking your investment decisions.
These commandments strictly followed can make you a successful investor; make you richer. The successful legendary investors like Benjamin graham, warren buffet have followed these principles. So why not you…?
Diversifying your investment style with both established companies and emerging businesses is one of the 10 rules of investing.
Investment decisions based on past happenings may not always be right.
It is better to consider the happenings, but give more importance to the present and future prospects of the investment.
An informed decision based on the fundamentals and mission of the company helps in long-term wealth creation.
Holisticinvestment.in encourages investors to look beyond the past and focus on future wealth creation.
Making investment decisions based on tax considerations may prove counter-productive.
However, minimizing taxes and maximizing returns after taxation would help. The long term capital gain tax is nil.
So if you invest for a time horizon of more than one year you will have better post tax return.
Among the 10 money rules for financial success, planning tax-efficient investments is a vital step.
Adopting a long term prospective is advisable if you want to be a successful investor.
If you want to get short term results, then you will be able to cultivate only coriander leaves.
If you want to grow a large banyan tree then you need to wait for years.
So if you really want to be richer and create wealth, you need to be a long term investor.
You could have seen a lot of success stories of people, who bought a good stock 10 or 15 years back and accumulated a good amount of wealth now because of the appreciation of those stock prices.
But have you ever heard of a person accumulating wealth by trading in the stock market or moving in and moving out of the market?
By trading in market you may make profits in a few transactions, but you will not be able to make profits forever.
There is a lot of difference between making profit in a single transaction and being a successful investor forever.
Successful investors always follow the timeless rule: long-term investing creates wealth, while chasing short-term gains rarely succeeds.
It’s not just about strategies or numbers — successful investors develop patience, discipline, and the ability to stay calm during volatility.
These qualities of successful investing ensure that you don’t get swayed by emotions or short-term noise.
Whether you follow SIPs, asset allocation, or value investing, your mind-set is what decides whether you succeed or fail.
There is a huge difference between knowing what we should do and actually doing it.
The knowledge piece appears quite sexy; being interested, learning something new, coming up with that cool idea.
The doing part sounds comparatively like routine work, no matter how easy this work may be to do or how obvious that it should be done.
Don’t fall into that “knowing Vs Doing gap”. Now you know the 10 commandments to successful investing and put it into practice to become richer.
To put these 10 commandments into practice, creating a workable financial plan to suit your financial requirements is important.
If you are likely to create this workable and well thought out financial plan, then I would firmly vouch for you to take advantage of
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