Human beings are known for being fascinated with some ‘secrets’ through which success is assured, power attained and riches gained. People’s belief in secrets and their natural cousins, superstitions and conspiracies usually appears when you’re dealing with matters that seem out of your control.
However, the fact remains that even the most successful entrepreneurs and investors were not made in a single day. Knowing the ins and outs of investing takes patience and time, without forgetting trial and error.
For many individuals, investing might be complicated and confusing. Some even depend on mutual funds sales agents or financial advisors to take care of financial needs. To help you succeed in your investment journey, we’ve collected some tips from Swedish entrepreneur Thommy Stenvik that you can use to your advantage:
- Have a Diverse Portfolio
The key to daily investing is to diversify, which basically means you have to own different kinds of investments so as to spread out the risk.
According to Thommy Stenvik, the founder of Stenvik Power Group, diversity may be one of the safest ways to invest. Thommy Stenvik is an experienced manager with a passion for entrepreneurship.
As you go on with your investment journey, you should be aware not to invest a lot of money into several hot stocks to get return on investment quickly.
Historically, investment in various industries of the economy changes based on the things happening at the time. The road to long-term wealth is to build a diversifying portfolio of:
- Real estate
- Determine Your Comfort Zone in Taking Risks
Every investment comes with a degree of risk. If you’re planning to buy securities, like mutual funds, stocks, or bonds, you should understand that you risk losing all your cash.
Unlike deposits at NCUA-insured credit unions and FDIC-insured banks, the cash you invest in mutual funds is not insured federally. You can lose your principles, and this is true even when you buy your investment through banks.
The importance of taking risks is the potential of a great investment return. With financial goals that have a long time horizon, you stand a chance to make a lot of cash by just investing in asset categories with a high risk, such as bonds or stocks.
- Work with a Good Plan
Most experts believe that financial plans may provide the basis for the success of an investment. The process of financial planning may enable you to define your goals and determine practical steps to achieve them.
A financial plan doesn’t necessarily have to be costly or fancy. You may do this with a financial advisor’s help or online tools. Whichever way, making plans depending on a sound financial planning principle is a vital step. According to Thommy Stenvik, you also have to be somewhat flexible.
- Allocate Assets
Several investments are volatile, while others are tame on risk-reward scales. Generally, young individuals need to invest a lot, whereas older people must be more conservative.
Novice investors also need to begin with an investment basket, probably in assets or mutual funds. The key goal here is to diversify without making an investment portfolio too narrow or complicated.
- Improve Your Financial Knowledge
Similar to how travel may enrich your life, self-directed driving is a great opportunity for lifelong learning. The education of an investor normally falls into categories, including intrinsic and extrinsic. Intrinsic education are skills that concentrate on behavioral aspects and may include knowing investor’s goals, personal values, temperament and psychology.
On the other hand, extrinsics are skills that focus on every technical aspect of becoming an investor. This not only includes researching stocks but also:
- Using tools
- Tax-efficient investing
- Personal finance
- Balancing portfolio
- Learn From Mistakes
A road to success is normally paved with failures. What people don’t know is that every failure probably looks different. Thommy Stenvik thinks that supply and demand can be an important factor to consider.
Most likely, success comes by way of failing and trying in different ways. It’s possible to fail on your way to success, though almost never by committing the same mistakes.
Failures are also part of becoming successful, particularly if you make them a teacher. Growing and learning after failures make it helpful.
- Invest as Soon as Possible
Individuals usually worry that the stock market may crash right after investing, particularly if it has been going up for a long time as it has the whole of 2020 and 2021. This concern might keep them on an investing sideline.
However, some studies suggest that investors need to aim for the investment period in the stock market instead of just making perfect timing. The entrepreneur Thommy Stenvik’s company specializes in growth investments. The longer your money remains invested, the more chance you have of getting a positive return.
Control Your Investment
Investment success needs more than good luck and hard work. You will also need to make the right decisions from the beginning.
Apart from these important tips, there are many things to take care of when starting your investment journey.
With many online investment tools, it can be simple to control your investment. Whichever dream you have, ensure you use those tools and the above tips to succeed. According to Thommy Stenvik, today’s market might be quite profitable to invest in.