Create Your Own Investment Luck
Do you ever wonder why some people are luckier than others when it comes to investments? Some people are able to hit it big when others do not. They’re generally referred to as “lucky investors,” but is the inherent good fortune reflected in their excellent investment results?
Not necessarily. In fact, the numbers indicate that luck is only part of the equation. In order for you to have the best chance possible to win when playing the investment game, you need to manage your investments in ways that will enhance your luck.
A slew of factors contribute to your investment odds: the financial markets, the economy, government policies, currency and interest rates, banking institutions, brokers, media, advertising campaigns, investment products and services, to name a few.
Other factors you have a little more control over, such as your own emotions, your spending habits, how you allocate your money over time, and your philosophy and motivation are just a few of the factors that contribute to your ultimate investment results.
It’s hard to say just how much luck contributes to your investment outcomes but it’s safe to say that luck plays a meaningful role. Before we get to how you can capitalize on that, let’s take a look at the degree to which luck influences an investor’s portfolio returns.
Sharpen Your Investment Skills
Everybody wants to invest in a solid investment that will make him or her rich and help them spend the later days in life without any worries and scruples. Although it may seem to be a very simple thing to do to invest in some place, there are several things that the layman is unaware of.
With years of experience and great diligence, today we have great investors like Warren Buffet and the Rothschilds. But they too were once beginners. When they started they were no different than you. They worried about their investments every moment of the day. And it is true that their suggestion to buy knowledge before you go anywhere and do anything is the wisest suggestion you can ever heed.
The knowledge that you gain by reading and applying all that you know will keep your investments from going down and help you to make right decisions every single time.
Look for something that is of value and is something that will help you gain skills and gain knowledge. Choose an investment that will give you something more.
Most investors make their decisions off of ignorance, while some others fail to have the correct information to determine their own information.
Always have the information needed to make a sound decision before you take an action.
While some people may be looking for something that is strictly luck based, the more prudent will look for something more stable.
Luck Requires Patience
If someone won the lottery, it is possible that they just got lucky. Some people will believe that they have some way of predicting numbers, or they will dedicate themselves to playing enough numbers to increase their odds.
However, there are many numbers that are played every day, and they are played by all types of people. Do lottery players really think they can predict exactly which numbers will be chosen, and do so better than the other tens of thousands of people who play the same number? It is likely that a major lottery winner was very lucky, but there is a good chance that there is a little more to it than that.
Luck is like a combination of skill and perseverance. A quick look at professional athletes will show that they practice every day. There is well documented evidence of their hard work. They have a great deal of skill. There is a significant amount of luck involved in their talent, but that luck was made by doing everything they could to become skilled.
You may not be changing your clothes and heading out to the golf course on a daily basis, but you can practice your investing skills through the use of a simulator. You can also practice your diligence by looking at all the major stock indices on a daily basis.
Rely on the Professionals
With the advent of online trading, investing has become quite a lucrative business. A number of financial institutions offer a host of services spanning from stock trading to portfolio management. All of these functions are becoming automated, with the help of smart trading software.
If you are a newbie and don’t want to deal with the hassles of stock trading, you can always rely on the professionals. Most financial institutions have money managers who have done thorough research on the markets. Their job is to pick and buy stocks by applying theories based on a set of rules that you may or may not understand.