6 Principles of Long-Term Investing

6 Principles of Long-Term Investing

We believe that increasing your wealth over time is about more than making the right stock picks. Over the years, we have observed the effect of fear, greed, lack of discipline and many other the pitfalls that investors experience.

Successful long-term investing isn’t just about picking the right stocks or timing the market. Many investors make mistakes due to fear, greed, and poor discipline. By following six principles, you can improve your investment decisions. These principles aren’t foolproof, but they offer guidance to avoid common pitfalls and stay focused on long-term goals.

One key principle is to avoid following the crowd. By the time a trend becomes popular, it may be too late to profit, as prices are often inflated. Instead, focus on objective research and calculated choices. Another important principle is diversification. A well-diversified portfolio can reduce risk and help navigate market volatility. Don’t rely on just one type of investment; spread your risk across different sectors, countries, and investment types.

Finally, understand your risk tolerance and learn from mistakes. Too much or too little risk can harm your portfolio’s performance. Stay disciplined, learn from your errors, and seek professional help if needed. Long-term success requires careful planning, flexibility, and a steady approach.

To help you avoid these potential issues, CTS has compiled The 6 Principles of Long-Term Investing as a guide to help you make investment decisions.

Download a copy of this piece here.

Published On: May 5, 2017|Categories: Resource Center|Tags: |

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This material is provided for informational purposes only. The information contained herein should not be construed as the provision of personalized investment advice. Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Past performance is no guarantee of future results. Investing in the stock market involves the risk of loss, including loss of principal invested, and may not be suitable for all investors. This material contains certain forward-looking statements which indicate future possibilities. Actual results may differ materially from the expectations portrayed in such forward-looking statements. As such, there is no guarantee that any views and opinions expressed in this material will come to pass. Additionally, this material contains information derived from third party sources. Although we believe these sources to be reliable, we make no representations as to the accuracy of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility therefore. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change without prior notice. For additional information about CTS Financial Planning, Inc. and the material posted on this website, please review our Important Disclosures.

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