There are 7 habits that highly effective investors engage in regularly that separate themselves from the thundering sheep herd. These 7 habits, in fact, often lead to highly effective investors acting very differently from the average investor not because he or she believes in contrarian investing, but because the highly effective investor utilizes information that the average investor does not consider in making his or her investment decisions. It is not the behavior that makes someone a highly effective investor, but it is the information a highly effective investor uncovers that makes his or her investing behavior drastically different.
These 7 habits are what drive the behavior of highly effective investors:
(1)Learn how to invest for yourself instead of handing your money to someone else to invest.
Self-reliance is the best way to ensure that no one is selling you the highest fee or commission products or worse, stealing from your account or incompetently managing your account (which is almost the same as stealing).
(2)Incorporate buy and sell rules that you do not waver from.
In investing, unlike relationships, emotion and hope are both the enemy. Becoming enamored with an investment or a stock and refusing to sell out when you've made enormous gains or minimal losses increases the chances that the investment will turn from a good to bad one or from a bad to worse one. Hoping that an investment will recoup losses that are unforeseen is a dangerous game as opposed to having definite sell rules that you follow no matter how much you love a particular investment.
(3)Having a “rich” life is not just about making money.
The most effective investors have an investment system that they have customized to their strengths and that they have spent time to learn so that investing does not consume their lives. Effective investors have loads of success in their investment lives yet still have enough leisure time to spend lots of time with their friends and families.
(4)Don't enter investment opportunities you don't fully understand because someone else, even a close friend, tells you that there is no “downside” with unlimited upside.
Anytime you here the phrase there is no downside, it should immediately trigger a red flag. There is no such thing as an investment with no downside. Even U.S. government treasuries, though none have ever defaulted to this date, still have a slim risk of defaulting. In fact, in 2006, the ceiling on the national debt had to be raised to ensure that the U.S. government could continue servicing interest on treasuries. Always take the time to fully understand what you invest in.
(5)Take as much time to understand that volatility does not equal risk.
Every truly successful investor has hit some homeruns in their lifetime. This required investing in assets that have some considerable volatility. At the end of the day, only your absolute returns matter. If this requires having to invest 15% of your portfolio in much more volatile assets than the rest of the 85% of your portfolio, and out of that 15% the chances are high that some will lose money but the chances are high that some will end up being enormous home runs, it is much better to invest this way than to invest 100% in assets that you expect to return 8% a year.
Effective investors take very calculated risks in assets that have high levels of volatility to earn returns that blow the average investor out of the water. Again, investing like this is not riskier than the guy that conservatively invests. In fact, the conservative investor is taking the greater risk, because he or she has a much higher probability of never getting rich. Effective investors ensure that not only do they understand this concept, but that they effectively apply it as well. The overwhelming majority of financial consultants employed by large global investment houses do not understand this concept. That is why habit #1, Learn to invest yourself, is so important.
(6)Employ the long tail of investment analysis and the long tail of investment strategies to vastly improve your returns.
The flattening of the world and increased accessibility to top-notch financial, corporate, and political information has created a drastic shift in the most effective investment strategies. Just Google “Long tail of investment strategies” and the “Long tail of investment analysis” to find more information about this.
(7)No highly effective investor utilizes diversification to become wealthy.
It simply can't be done. Specialize, specialize, specialize. Become an expert in several asset classes and find the best investment opportunities in these asset classes. Join an investment club with other experts and leverage all the expert knowledge to find the best investment opportunities not in your country, but the best investment opportunities in the world.
7 Habits Of Highly Effective
Website design these days can take the shape of many forms, shapes, designs and animations. You can have a highly rich website with lots of information and content or you can have lots of animation with little or no text. It is important to decide what is best for your business outside of the traditional newspaper and flyer advertising. Many people today, including me, want to use the web to find more information about a company. For example, this is especially true when going to a restaurant that you have never been to. What is the atmosphere like? What is on the menu? What are the hours of operation? A good website will help to alleviate the concern of the unknown and offer a more friendly approach to finding out more information about a business before you decide to do business with them.
I have comprised seven elements that I feel go into a good well informed website:
Element #1: Conveying the Message
In some form, your website will have to convey a meaning or message on what that product/service or information is all about. This is done effectively through images, animations and most importantly written text. You cannot assume your visitor will understand anything so it needs to be explained not from your point of view but from a point of view that they have no idea of what you do or anything about your business.
Element #2: Organized and Presented Well
How well the information on your website being presented can be a big factor on retaining your visitors. Pretend you are the visitor. Once you are done with one page, do you want to move on to the next? Does the website make you want to know more or are you just done after looking at the front page. Make sure the website sends a clear message on each page and invites the user to read on.
Element #3: Instant Eye Catching Graphics
Most people see things in a visual way so when they find your website does it catch their eye? Is it inviting and even better mesmerizing. This gives you an excellent visual perspective on how your company presents itself. Written text is good, animation is good but sometimes a simple eye catching graphics surpasses both of those.
Element #4: User Friendly Navigation
This goes kind of in hand with #2. Is it easy to navigate the website or do you feel you need to call the company owner to find product information? Is it very hard to find a FAQ or online technical support? These are areas that I want to quickly access to either ask for questions or ask for additional information without digging too far and getting confused.
Element #5: Target Audience
You may be a local accounting firm and your target audience may be local. You may sell widgets and your target audience may be the country. You may sell software and your target audience may be everywhere. You target audience may also be your existing customer base so they have somewhere to go when they want more information or to quickly look you up. If you are a service orientated industry, with the flood of new websites going up each day, it is actually better to cater to a local crowd then to try and get a new customer from the opposite side of the planet. This does work if you are ecommerce but again this depends on the type of business you are promoting. If you are selling something a wider market is better, if you are promoting a service then a more local market is preferred. Focus on how the public will view your website, not just yourself. Keep this in mind, very important.
Element #6: Easily Found Contact/Support Info
Now that someone has gone through your website and is ready to contact you for some more information, work or to book a dinner reservation, I have found it very unfriendly to have to search and search and search only to finally find a contact form. Sometimes, the contact form does not even work. This is one area that is crucial because your visitor will leave if you submit an inquiry and it shows a strange error message. Leaving a phone number is also much nicer than hoping you will get a return email from someone out there in cyberspace land.
Element #7: Extra Little Fun Stuff
Now that you have conveyed the message and the meaning, having an area where customers can come and have a little fun never hurts. This not only adds dimension to your website but also keeps people staying longer.
Well there you have it, my view on effective website elements. Hope you found it helpful.
Both J.s. Kim & Anthony K are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
J.s. Kim has sinced written about articles on various topics from Finances, Higher Education and Finances. J.S. Kim is the founder and managing director of SmartKnowledgeU™, LLC. Please
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