To be a successful investor, you need to be aware of and apply a few essential rules to manage your portfolio efficiently.

Set a goal for yourself

Do you want to receive a fixed sum on a regular basis? Do you wish to see your capital grow to provide for your future and that of your children? Do you want to be able to have immediate access to your money or do you wish to invest your savings over the long-term? With the help of your financial advisor, you will have to answer many questions in order to make the most appropriate investment choices.

Don’t get into debt

The main goal of every saver wanting to invest in the stock market is to realise capital gains over the long-term. That is why it is strongly recommended that the money invested in shares comes from your savings.

Set long-terms goals

Stock market history throughout the world proves that investing is always profitable over the long-term. However, in order to hope to maximise returns, it is necessary to understand that the holding period can be extremely variable depending on the type of investment chosen. Never forget that time is the best ally of performance.

Invest steadily

In order to construct a portfolio, one needs to invest steadily. It is preferable not to invest your capital in one lump sum, but rather in regular installments in order to be able to benefit from market fluctuations. Do not forget that for a given amount, you will be buying a larger number of shares when share prices are lower.

Diversify your portfolio

Do not concentrate all your investments in the same business sector. Your portfolio must include several securities in order to benefit from opportunities in several different business areas. Concentrate initially on four or five stocks to familiarise yourself with the workings of the stock market.

Accept the risks

The decision to buy shares on the stock market exposes you to changes in share prices. Share prices may rise or fall. You take a risk by investing in the stock market. In investment, the greater the risk, the greater the potential reward in terms of portfolio performance. Performance can be considered as reward for the level of risk assumed.

Don't panic

Stock market investing is a matter of keeping one’s head. Well-informed investors and market professionals are more inclined to sell during periods of strongly rising markets (to realise capital gains in line with the set objectives) and to buy when share prices decline.

Be well-informed

Investing in the stock market is to second-guess the future. It is therefore essential to collect the maximum amount of information about stocks – the company’s business activity, results, prospects etc. – to be in a position to take the right decision. It is therefore highly recommended to keep abreast of current stock market developments by asking your financial advisor for information or consulting the various specialised media.

Speak to professionals

In order to respect the golden rules of stock market investment, one needs to speak to seasoned professionals. They will guide you according to your financial situation and your investment objectives. They will thereby enable you to have every chance of being successful.