Why do some people always make money while others lose? What do you need to do to make your portfolio successful over time? It helps if you have self-efficacy or the unshakable belief in knowing that you have what it takes to succeed whether or not you have the right skills. Stanford University psychologist Albert Bandura first described this behavior in the 1970s. Persistent effort, too, can help you as well as these 5 tips to successful investing:
1. Create an environment for success. For example, you can't build a portfolio of investments if you have no tools to track your performance and asset allocation. Get the right information, software, web tools, etc. to help you.
2. Have good role models. You can't do it alone so make sure you have the support of significant others, successful mentors, or a coach.
3. Avoid self limiting beliefs. If you lose money don't assume that you will never be able to make money again. Successful people have had many failures. Keep investing and adding money to your portfolio anyway-learn from your mistakes and move forward.
4. Don't allow losses to derail your dreams. Keep your eye on the target you set. For example, I want x amount of money in x years. Know that during those years not everything is going to be going up at the same time- and that's a good thing. Diversification is proven money making long term strategy.
5. Believe in yourself and your portfolio. If you have a retirement plan strategy that is not on target, ask yourself if something fundamentally has changed. If not, leave it alone. Believe that you did the right thing to begin with and believe in your plan to see it through.
With determination you can model the behavior of those that are successful. You can also get the support and encouragement you need from your environment and you can develop the optimism that's needed to recover from failures, and market downturns. Follow these 5 tips and you will stop losing money and become the successful investor that you want to be.
Fern Alix-LaRocca is a Certified Financial Planner with over 24 years experience as a fee-only Financial Advisor. Stop losing money and increase your net worth by subscribing to her free e-newsletter at http://www.wholeheartedway.com You will get 4 free bonus reports and your information is always confidential.