Investing has always been a game of knowledge, and the top 1% of investors–the individuals with the highest net worth out there–have always known this simple fact about the financial markets. But the truth is, anyone can succeed in the stock market or with alternative investment portfolios. The advancement of wealth hinges on simple financial competency and a dedication to understanding the twists and turns of a marketplace that is always writhing with life. In order to invest like the 1%, you need to first approach the market in the same way as these successful investors. Only then can you begin to enjoy the same kinds of returns.
Research
The importance of research for investors in the United States can’t be overstated. Any success that you may see in the future is a direct product of your knowledge base, so growing that tree of understanding is crucial. Your first time in the stock market may be a bit overwhelming, but it’s the best way to learn how to trade for next year and beyond. Utilizing knowledge bases like Wealth Rocket can help you improve your trading chops in a hurry. Committing to a robust reading regimen is the best way to develop your eye for indicators and details.
Budget
Budgeting is one of the most important things that an investor can do. This goes for everyday life as well as for purchasing commodities on the open market. The top investors in the market understand that budgeting and rebalancing is the key to creating continuous success in the marketplace, and so should you. This is because the market is an ever-changing entity that produces stability along with a sense of randomness. Learning to time the market is critical to taking advantage of this changing landscape, but so too is allocating your assets across a number of different investment types, asset classes, and engagement levels.
To use an analogy that everyone can relate to, budgeting your portfolio takes the same concentration and care as the ability to enjoy Hawaii with a modest travel budget. It doesn’t make sense to splash out on assets when you can lock in discount rates on stock purchases, the same way that travel reservations on airfare and resorts in Maui or Oahu are priced at wildly different levels of discount on a number of different travel sites.
Give Back
Top investors also give back to their communities. The 1% know the power of relationships and billionaire investors like John Arnold spend their time in philanthropy as a way to improve the quality of life enjoyed by those around them. The Laura and John Arnold Foundation do exactly this. John Arnold is a former energy trader and hedge fund manager who cut his teeth at Enron before the financial crash. Leaving as one of the few without blood on his hands, John Arnold started his own hedge fund and proved that his insight into the stock market and state of the United States energy trade wasn’t a fluke.
Now he spends his time researching high-quality sites of charitable giving through his philanthropy and foundation. Giving back is a great way to improve your own life, as you will meet unique and talented individuals that are entirely deserving of a fair shake, just like you. Building these personal relationships is also a great way to create future opportunities as well. Top investors across industries know that opportunity comes in all shapes and sizes, so opening as many doors as possible is essential to creating future growth potential.
Investing like 1% takes on many forms. It starts with rock-solid research and ends with unique insights that are only gained by engaging with intelligent people in your atmosphere.