Lesson 8: 9 Ways to build good investing habits
Long-term success in the financial markets requires patience, discipline and planning. Here are nine specific ways that you can develop good investing habits and begin building long-term wealth:
CIBC Investor's Edge
5-minute read
1. Set clear investing goals
Establish specific, measurable and realistically achievable investment goals. Whether it's saving for retirement, a home, or education, having clear objectives can help guide your investment decisions.
2. Create a budget
Develop a budget that allocates part of your income to investments. This ensures you consistently contribute to your investment accounts and helps you manage your finances effectively.
3. Start early and invest regularly
The earlier you start investing, the more time your money has to grow through compounding. Consider setting up automatic contributions to your investment accounts to make regular investing a habit.
4. Diversify your portfolio
Build a diversified portfolio that includes a mix of asset classes, such as stocks, bonds, and cash. This helps spread risk and can improve your overall returns.
5. Stay disciplined
Stick to your investment strategy and avoid making impulsive decisions based on market fluctuations or emotional reactions. Having a well-defined plan helps you stay focused on your long-term goals.
6. Review and rebalance
Regularly review your investment portfolio to ensure it aligns with your goals and risk tolerance. Rebalancing your portfolio as needed can help maintain your desired asset allocation.
7. Be patient
Investing is a long-term undertaking. Resist the temptation to chase short-term gains or panic during market downturns. Staying patient and committed to your strategy is key to achieving your financial goals.
8. Reflect on your experiences
Take time to reflect on your investment decisions and outcomes. Learning from both successes and mistakes can help you refine your approach and improve your investing skills over time.
9. Educate yourself
Take the time to learn about investing principles, strategies, and market trends. Reading books, attending workshops, or following reputable financial news sources can build your knowledge and confidence.
Keep building your investment know-how by exploring other courses, articles and guides in our Learn library.
