- Are you a first-time investor looking to make the most out of your investment opportunities in 2020?
- Do you know which areas and financial assets you should seriously consider from a growth and risk point of view?
- Have you tried exploring new financial assets like cryptocurrencies in terms of a stable store of value in 2020?
Many people have this misplaced notion of investors. They feel that anyone who starts as a professional investor always end up successful. However, that is not the case. If that would have been the case, we would have thousands of Warren Buffetts roaming around in our streets. The fact of the matter is that we do not.
Like any other specialised field of activity, being successful as an investor requires a high level of skill, intuition, knowledge and an ability to take calculated risks. In this article, we will look at five investment tips for 2020 from the best Wall Street investors.
List of 5 Investment Tips from Wall Street Investors for 2020
1. Investing is only for the Long Term-
It is called investing for a reason. The reason is squarely dependent on the time frame for investing. Seasoned investors on Wall Street argue against short selling under any circumstances. They state that short selling is against the interests of everyone.
If you are investing in an asset, it is important to trust it for an extended period. This means letting it grow with your support. This will help it grow and allow you to reap rich dividends in the near future. Time is very important when it comes to investing.
2. Invest in New Financial Assets-
If you are looking for growth, it is important to latch on to newer areas, which will guarantee you the same. This means investing in new financial assets like bitcoin union. Cryptocurrencies are growing in a major way and have made millionaires out of normal people in a few years.
Wall Street experts suggest that Bitcoin and other cryptocurrencies are the future of our financial systems. They are going to dominate growth and opportunities in new areas. The Fintech revolution is underway and you should definitely try to be a part of the same.
3. Take Calculated Risks-
As an investor you need to take calculated risks in order to stand above your competitors. There is a difference in taking calculated risks and jumping to decisions emotionally. This is why it is essential to take help from all the research and information, which is already available.
There is a fine line between the two, and experience will help you make the distinction clearer as you move along. However, if you are not taking informed risks, you will not be able to emerge on top. Start small with calculated risks and take it up a notch when you start succeeding.
4. Be Rational and Logical at all times-
There is no ‘gut instinct’ in the world of successful investors. There is only expertise, data reading, logic and rationality. In other words, emotions should have no place in making investment decisions. It is essential that you pay heed to what the data is telling you.
You might really want to see a startup succeed, or are inspired by the magnetic personality of a CEO. However, while those things matter, they are only able to take a company to a stipulated point. Beyond that, you need data and rationality to tell you whether you should stick or bail.
5. Don’t be Afraid to Fail-
Not everyone gets it right the first time. Warren Buffett too has some rotten apples to his name. However, you should be prepared for failure and learning from it. This is why first-time investors need to start small and then grow over a period.
If you experience a huge failure early on in your career, you will not be able to weather the storm. When it comes to any financial activity, there is always a risk attached to the same. Knowing, understanding and analysing failure is going to help you grow as an investor.
The Final Word
Every investor has their own journey. What works for you, might not work for someone else. This is why you should always analyse yourself and figure out what makes you tick as an investor.