5 Tips From Top Traders
January 24, 2013 4:43 PM
5 Tips From Top Traders
What makes an online trader successful? Fidelity Investments surveyed its top trading customers, those with a 12-month portfolio performance of at least 20%, to find out the secrets to their investing success. Here are their top five tips.
Source: Fidelity Investments’ inaugural Top Traders Survey.
Source: Fidelity Investments’ inaugural Top Traders Survey.
Shoot for the Stars, Settle for the Moon
Most top traders set reasonable expectations for themselves. Sixty-four percent define investing success as a positive total gain in their portfolio, 31% define it in comparative terms to an index, and five percent define success as breaking even.
Take Risk Head-On
62% of top traders surveyed say they are willing to take on large risks for the prospect of large returns, while only 9% say they would be willing to accept lower returns for less risk.
68% believe investing is a calculated risk.
68% believe investing is a calculated risk.
Focus on the Big Players
Top traders are primarily bullish about large cap stocks, with mega cap stocks taking second place.
You Are Your Own Best Teacher
53% of top traders use their own experiences with a product or company to generate new investment ideas.
39% of top traders who beat the S&P 500 Indexs rate of return as of the survey date attribute their investment success to their own knowledge base and research.
39% of top traders who beat the S&P 500 Indexs rate of return as of the survey date attribute their investment success to their own knowledge base and research.
No More Tears
32% of top traders say other traders are too emotional in making investment decisions, follow whats trendy or sell too quickly.
Since the U.S. financial crisis of 2008, 56% of top performers say they have remained or have become more of a long-term investor.
Since the U.S. financial crisis of 2008, 56% of top performers say they have remained or have become more of a long-term investor.
