How to Become a Successful Investor?

Firstly, the content written here is based entirely on my personal experiences and should not be considered professional advice.

Since I have made it a hobby to research and find suitable investment options from a young age, I have gained knowledge in many different fields. As a result, I can create a list on how to proceed effectively.

1.Patience

No matter what area you are investing in, true success cannot be achieved without patience. Whether you are investing in real estate, stocks, or cryptocurrency, a similar situation exists. The most challenging part of investing is not getting excited and selling when you make a profit. Once you overcome this point, your success rate will increase. Constantly checking the value of your investments can lead to unhealthy and incorrect decisions. Therefore, if you are confident in your investment, you should avoid looking back for a long time.

2. Research

Many people want to make money easily. Instead of asking “What is the best investment? What should I choose?”, they often base their investments on hearsay. This approach takes them further away from successful investing rather than bringing them gains. If you are considering real estate investment, you should start by examining which city, district, and neighborhood are most suitable based on the number of listings, listing prices, and listing dates available online. If new projects are being developed in the area, you should also consider these. This way, if there are new projects in the same neighborhood, you can make appropriate choices in places that have not yet reached that point.
If the investment is in a company stock, you should analyze the company’s financial reports, look at certain values like the P/E ratio, and choose the company accordingly.
When selecting an investment fund, look not only at the past year’s performance but also at the performance over the past 3 to 5 years. Choose the one that most closely matches your investment types and entrust your money to professional hands.
For cryptocurrency investments, do not invest based on coins you hear about on the internet. Read the whitepapers and invest in coins that you believe will be good projects in the long term and beneficial for the blockchain. Additionally, consider investing in areas that are currently trending in the crypto market.

3. Budget

The key point here is not the size of the budget but its source. If this source will be through borrowed money, do not invest in anything other than real estate. Borrowing money to invest will hinder your ability to make healthy and correct decisions. It will make you constantly check the current value due to lack of patience. For real estate and land, purchasing with credit can be evaluated during periods of suitable interest rates. However, the best opportunities are those where the investment is made using a loan taken during a transition from high to low interest rates.

4. Diversification

You should never select just one type of investment. Dividing your money into low-risk gold/silver, stocks/funds, and a small portion into crypto can minimize losses and maximize profit potential. For low-risk investors, the ideal distribution might be 50% commodities, 35% stocks/funds, 10% bonds, and 5% crypto. For high-risk investors, it could be 15% commodities, 40% stocks/funds, 5% bonds, and 40% crypto.

5. Flexibility

Sometimes you might think you have made the right investment. However, if it becomes clear that there are significant losses or potential losses after a certain period, you should accept the loss and exit the investment rather than being stubborn. You need to reassess the general direction of the market by conducting fundamental analysis. Instead of investing in a declining market, you should increase the weight of investments in markets that are in an upward trend.

These are the main points for successful investing. If you have a specific area you are curious about on how to become a successful investor, feel free to contact me. If there is enough demand, I can also create content on that topic. :)

Thank you for reading.