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How to be a successful investor in the stock market

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The best investors have a strong conviction in the stocks they buy and sell. This conviction means they never average a position in hopes of a rebound. In other words, they stay away from “hope and change” tactics, which can end up costing them their investment capital and time. In addition, they know that 70% of their calls are correct. The other 30% are duds, which eat up resources and create opportunity losses.

Focus on long-term goals

If you want to become a successful investor in the stock market, you need to focus on long-term goals. The market may experience ups and downs, but a strong portfolio diversification will minimize your losses. It is also important to avoid short-term noise. For example, investors in the S&P 500 were able to ride out the massive sell-off in early 2020. In the days that followed, the COVID pandemic, investors were able to ride out the short-term bumps, and markets soared higher.

If you have short-term goals, invest only what you can afford to lose. This will give you a longer time horizon to accumulate your money. Then, you can move your assets into more stable investments.

Invest according to a plan

Investing …