The Key to a Solid Portfolio

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Investing is a tricky game. Some worry about the market levels being too high and constantly fret over an impending crash, while others wait endlessly for any significant drops in market prices to hop the investment bandwagon. The truth is – there is no wrong or right strategy as long as you stick with your chosen path.

The Key to a Solid Portfolio

People are repeatedly reminded that predicting the market is generally impossible. Yet, they still spend tremendous efforts trying to time the market without realizing it is a losing strategy. Ironically, the most successful investors often prove to be those who do not possess the skills to analyze the news and the markets but who keep investing regularly and constantly without significantly changing their strategies.

Even if one invests a small amount every month, it is possible to generate decent returns in the long run. While investing, it is, therefore, essential to develop a long-term plan and to start the investment journey early on. That way, you will have plenty of time to ride any inevitable volatility waves, gain experience and build your wealth.

As an investor, if you look at history, you will notice incidents of violent crashes that can rattle one’s emotions. Still, those who firmly follow their investment plans most often beat the volatility in its own game. Ask yourself, as an investor – would you trust your emotions which have zero historical context, or would you trust historical data that speaks volumes about market behavior? The key to success is always to keep investing, leaving emotions aside. As Warren Buffett, the CEO of Berkshire Hathaway, once rightly put it: “Buy, Hold and Don’t Watch too Closely”.

Initial guidance is also essential when starting an investment journey. The first step would be to talk to your friends and relatives about their investment experience. If you don’t feel comfortable talking to your friends about investing, you can participate in anonymous groups to share ideas and gain insight into market trends. Yet, as Emil Kerimov, the CEO of EKTICO CAPITAL, says: “Before making any investment decisions, the safest option is to always talk to a qualified financial advisor or anyone with heaps of investing experience to tell you the crucial things you should pay attention to.” That way, you will learn from the experience of others and achieve the confidence necessary to start your own investment journey.

Remember – to create wealth, all you need is a simple plan and the ability to stick to it, no matter what. Every investor makes mistakes. Treat every experience as an opportunity to learn. Successful investing is about getting up after every fall and never giving up. The underlying truth is that markets have been around for decades, and in the long run, they are always up. If you wait on the sidelines, you may be missing out. By keeping your investments regular and avoiding changing strategies mid-way by turning to haphazard investments, you will achieve your goals faster.

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