6 essential tips to make your investment more profitable

 (photo credit: INGIMAGE)
(photo credit: INGIMAGE)
Last week, I happened to meet an investor from Israel. It came as a surprise to me that his only source of income is trading and investment. And believe you me; he is doing well in life. If anything, he got me interested in his business and fortunately, he didn’t’ shy away from telling me his secrets.
So, I had an hour-long discussion with him to try and find out how he is surviving and even growing rapidly in a market as volatile as this.
As per him, there are a lot of strategies that could be put to use to create an investment portfolio that would not disappoint you. However, there are very few which have the potential to make you a big success in this space and land incredible profits in your pocket.
He has been in the business for years and these years of experience have imparted him a great deal of expertise in this space. Based on that, he has chosen a path for himself that comprises seven highly concrete and effective investment strategies that are the foundation of his success.
Using these strategies, I do not believe there would be any human who would not be able to achieve some success. In this article, we have broken down those seven essential investment tips so that you can repeat that success for yourself.
Be a smart investor
The purpose of all investments is maximum returns, but for that, you have to be very smart and patient at the same time. So, follow the given approach as he did:
To create a large portfolio, it is important to:
  • Before you begin investing rapidly, make it a point that you have saved enough. So, start saving before you start investing and have a good enough reserve before you get into the business.
  • Once you are there, make sure you Invest consistently. You cannot just sit back and be active once every 6 months. This is no market for this approach. You have to be consistent with your trading.
  • Learn from your mistakes, that is the only difference between a normal and a smart investor. It is okay to make some mistakes initially but make sure you do not repeat them in the future.
Invest in lower-cost ways
Keep your investment expenses as low as possible. During bull markets, it is easier to do that however in the long run these expenses add up and could sum up to a huge amount.
So, start small and plan to lower your investment expenses by just 1% initially and you can see the results of the same in the long-term.
If you can cut your annual investment expense your effective net return will increase and if you count that annually you will see it makes a huge difference. So, try to find investment options with the lowest possible fees or try to find an online trader who charges lower fees and cost per transaction.
Have a diverse portfolio
Diversification is the key here and does not underestimate its importance. The reason is the high volatility of the market. You can never really foresee what is going to happen. Markets fall as quickly as they arise, which means you need to be prepared for that. The only way to do that is by investing variedly and maintaining a balance between fixed-income investments and cash equivalents. So, no matter how much returns you are expecting out of a particular asset, do not invest all your funds there to be at a safe spot. 
Do not put all your eggs in one basket
Keep rebalancing now and then so you know where you are going with your strategy. Make sure that once in a while you come back to where you started from.
These means do not let your strategy fade away over time. To explain it more precisely, make it a point that you check how true you stand to your initial plan. If you planned to invest 50% in stocks but now you are not even investing 20% then be prompt to bridge that gap. The same applies to other investment options to make sure you do not put all your eggs in one basket so you can take advantage of various market gains.
Pick the right broker
The stock market has many twists and turns and can get complex very quickly. In addition to the stock exchanges, stockbrokers play an important role. The dealers rely on brokers to make their investment life possible and bearable. Learn bonds best UK stockbrokers to understand exactly what a brokerage company is and what it does.
Think long-term and be willing to learn
This is no market for quick-shots, and nobody here becomes rich overnight or not even in a couple of years. So, the best plan is to stick to a long-term goal and be patient. The results will be so fruitful.
Plus, you must adapt to the volatility of the market and learn over time. The process will be gradual but if you stick to it you will keep getting better. Learn from your mistakes and grow with them.