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Top 5 Rules: How to Become a Smart / Successful Investor


Following a few fundamental principles will greatly increase your chances of success in the financial markets, regardless of your level of experience as an investor. In this article, we’ll look at the top five rules on how to become a smart and successful investor.

Investing involves more than just putting money into stocks or assets and hoping for the best. It calls for self-control, a strategic mentality, and an openness to change and growth. Success in investing demands more than just luck; it also calls for a thorough understanding of markets, risk tolerance, and decision-making skills. In the erratic world of finance, astute and successful investing demands both art and science.

Top 5 – Rules to Become a Smart Investor

After reading the tutorial session, I believe now you have understood the basic conceptual knowledge of investing. Before diving into investment you need to figure out the path or the direction. Choosing a right direction would lead you to move ahead. “Right path will help you to become a Smart Investor” else it would lead towards fall of investor. To examine yourself there are few parameters to do so.

  • Step 1: Be fully aware of investment process.
  • Step 2: Learn to choose right move.
  • Step 3: Stick to your drafted investment plan.
  • Step 4: Review and Monitor your investment.
  • Step 5: Learning is an experience.

Let us understand in detail, “key points of smart investor” and “what it takes to be a smart investor and good investor”:

Be Fully Aware of Investment Process

When you start learning about investment, you should start with A for Apple and B for Ball. If you start learning from half away from knowledge, you will be always in trouble. Let us take a example: you go to medical store and ask for cold and fever tablet. You use the medicine given by medical store for next 5 days but you fail to recover. The biggest trouble you face is being unable to figure out the cause of failure.

You don’t know if the prescribed medicine wasn’t for cold or fever or if it didn’t work due to other medical problems. If you can’t identify the problem’s cause, you’ll never learn from your mistakes. It’s likely you’ll repeat the same mistake because you’re unaware of the root issue. Therefore, it’s recommended to start slowly and systematically when learning about investment. This approach is the only way to achieve the goal of becoming a smart investor.

Learn to Choose Right Move

Once you understand investment concepts, draft your plan on notepad, and prepare to proceed. Conduct additional research on current affairs, trends, expert opinions, valuations, and risks for your chosen assets. For example, if you’re considering buying Infosys stock based on past performance, ensure you’re making a sound decision.

However, if recent news reveals the company has closed some operations and is undergoing restructuring, along with poor performance and significant losses in consecutive quarters, it’s not the ideal time to invest. Assess such factors before taking the leap into becoming a successful investor.

Stick to your Drafted Investment Plan

Trends are made-up of up’s and down moves, whether it’s your life trend or stock trend there cannot be only uptrend or only downtrend but overall you will be satisfied with your life or your stock performance after a long period of time.

Same mentality need to be applied for your investment plans as well. To become a smart investor, do not let your worst time to spoil your investment plan by making physiological decisions. Smart Investors are those who do not let their emotions to control their investment plans.

Review and Monitor your Investment

Once you have started with investment decisions than keep monitoring it on timely basis. Apart from this keep reading current affair of your invested assets which will assist you to make further decision like if you want to invest further capital or reduce investment or removing complete investment from those particular assets which are not performing and many other decisions. This way is the the right way towards how to become a Smart Investor.

Learning is an Experience

If it’s a life or a game or an investment, only person who wins this gain is the one who learns from mistakes. Mistakes and learning is the maturing processes for life, game or investment.

Keep learning, Keep improving is the only fundamental and win-win strategy whether it may be life, investment or a game. Let rest of the winning strategies keep it on experience. To become a smart investor turn your failures into learning and experience as a step stone of success.


Keep in mind that there is no one-size-fits-all approach to investing; what suits one investor might not suit another. Your personal financial situation, investment horizon, and risk tolerance should all be taken into account when creating an investment strategy. In addition, keeping up with industry developments and consulting with financial experts can offer insightful guidance and help you manage the intricacies of the investing world.

Ultimately, the path to becoming a knowledgeable and prosperous investor requires dedication and persistence. You can harness the power of investing to create wealth, reach your financial objectives, and ensure a better future for your family by adhering to these core ideas and continuously improving your strategy.

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