3673: Practical Tips from Successful Investors by Brian Tracy on Investment Advice

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[00:00:54] This is Optimal Finance Daily. This is Optimal Finance Daily. Practical Tips from Successful Investors by Brian Tracy of BrianTracy.com. And I'm Justin Malek, your host and narrator reading you articles every single day of the year, including weekends and holidays, pushing ourselves back on the right path. So let's keep at it as we optimize your life.

[00:01:20] Practical tips from successful investors by Brian Tracy of BrianTracy.com. Many thousands of successful investors have been interviewed over the years in an attempt to gain financial advice and discover their so-called secrets of success. Here are some of their recommendations and tips on how to invest money to make even more money. Make more money by taking risks.

[00:01:48] An important piece of financial advice is if you are not a bit worried about your speculations or your investments, then you are not risking enough. You should have enough money invested so that it is a real concern to you. You are more likely to watch that investment more carefully and eventually make more money. How to invest. Number one, conquer greed. In order to make more money, always take your profit too soon.

[00:02:18] Conquer greed, as Bernard Baruch says. There's a saying in the stock market, bulls make money and bears make money, but pigs never do. Number two, understand the uncertainties. Distrust anyone who claims to predict the future and provides you any financial advice through foresight, since all financial outcomes are loaded with uncertainty.

[00:02:45] If you want to learn how to invest money successfully, you must understand that this means that every investment is a gamble of some kind. No one can tell you with accuracy what is going to happen in the future with regard to any stock or investment. Everyone is guessing the very best they know how. And number three, make more money by accepting your losses. When the ship starts to sink, don't pray, jump.

[00:03:14] In other words, accept the small losses cheerfully as a fact of investing life and move on to make more money in the future. At the very best, about 50% of investments will go wrong. They will actually decline in value. They will fail to realize your hopes and expectations for them. But you can still learn how to invest successfully if you minimize your losses on the downside so that you can maximize your profits on the upside.

[00:03:44] Financial advice. Number one, financial advice and luck. Luck is the most powerful single factor in learning to make more money and invest successfully. Because there are no predictable patterns for investing in the stock market, for you to be successful, you need a lot of luck. A good question for you to ask is, how much of my financial future am I willing to entrust to luck?

[00:04:13] Number two, cut the emotions out. Never fall in love with an investment. Never become emotionally involved with anything that you purchase with the intention of making a profit. This rule on how and where to invest also includes real estate, especially in your home. Number three, look for safe investments. There are many types of investments available in most countries. They all come with their own levels of risk and reward.

[00:04:42] I strongly advise that you look around and educate yourself so that you may find safe investments that provide you with your desired level of reliability and payout. Number four, hunch versus hope. Never confuse a hunch with a hope. Many people hope that a particular stock or investment is a good one that can help them make more money. They then say that they have a very good hunch that it's going to go up.

[00:05:11] The best financial advice you can learn is to consciously separate your hunches from your hopes and not confuse the two. Number five, be confident. Optimism means expecting the best. But confidence comes from knowing how you will handle the worst. To put it another way, confidence springs from the constructive use of pessimism. Number six, think for yourself.

[00:05:41] Disregard the majority of opinion. Think through every decision for yourself. Don't allow your investment decisions and ability to make money to be influenced by anyone else. Take the time to think them through personally and then take full responsibility for each choice you make. And number seven, move forward. If it doesn't pay the first time, forget it.

[00:06:06] If based on the information you have, you decide to invest in a stock and it doesn't work out, sell the stock and go on to something else. Keep your ego completely out of the equation when learning how to invest to make more money. A very wealthy man once told me, Investment opportunities are like buses. There will always be another one along. How to invest like the most successful investors.

[00:06:35] The preceding advice is practiced by many of the most successful people who have ever invested in stocks. Remember, the stock market outlook is highly speculative. It is dominated and controlled by people who are making their living by buying and selling stock for others. And these people make mistakes every single day. There is no best way to make more money in the stock market.

[00:07:01] If you're going to learn how to invest in stocks, be careful. Do your homework, gain some financial advice, and watch your investments all the time. Over time, you will figure out how to achieve financial freedom, which will enable you to enjoy a more comfortable lifestyle. You just listened to the post titled, Practical Tips from Successful Investors, by Brian Tracy of briantracy.com.

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[00:08:50] Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify. Thank you to Brian. I like that this wasn't really about picking the right stock.

[00:09:17] Most of the suggestions are about managing yourself. Don't fall in love with an investment. Keep your ego out of it. Accept the small losses and move on. And don't confuse a hunch with a hope. It's basically a list of the ways we get in our own way when it comes to investing. And I do think it's true that luck plays a role. That nobody can actually predict the future.

[00:09:42] And that even the professionals doing this all day are guessing and making mistakes constantly. But hopefully that's reassuring. Now personally, I've always leaned boring. A simple long-term approach like index funds, buying a little at a time, and mostly leaving it alone. Mostly because it keeps my emotions out of it, which Brian mentioned in this post. I know the previous host of this show, Diania Merriam

[00:10:09] used to frequently mention how the people who perform the best in their investments were the people who forgot they had investments in the first place. And what better way to keep emotion out of it than forgetting about it altogether? But I'll leave it there for today. Thank you to Brian for this one. And thank you. I appreciate you being here and listening every day. Have a great rest of your day. And I'll see you tomorrow, where your optimal life awaits.