Six Habits of Successful Investors

Fidelity lists six habits of successful investors as follows:

• Develop a long-term plan—and stick with it.
• Be a supersaver.
• Stick with stocks, despite volatility.
• Be diversified.
• Buy low-fee investment products that offer good value.
• Focus on generating after-tax returns.

This is a pretty good list and it's hard to argue with Fidelity. Here's what I'll add about investing success:

1. Go with low-cost index funds. They will give you the best overall return (once expenses are factored in) for the least amount of time and hassle.

2. Save as much as you can for as long as you can. Time is your greatest investment asset.

3. Stick with it! Even when the market goes down (or especially when it goes down), stay with your strategy.

It's really that simple IMO. Anyone want to add anything else?

Comments

[Aaron]

I would add "Mary someone supportive" (if you decide to get married). Getting in bed with a big spender can make it difficult to stick to an investing plan.

[Mrs. Picky Pincher]

It's funny how people freak out about short-term fluctuations in the stock market. It's this mass hysteria and in the long run it usually doesn't matter--the market naturally ebbs and flows.

I think I would add "Don't Panic" to this list as well. :)