Imagine two friends, Jake and Michael, who want to start investing. Jake thinks investing is just about luck, so he invests in stocks based on random advice from social media.

On the other hand, Michael took a different approach—he spent time learning, understanding financial concepts, and developing strong investment strategies. Over time, Jake lost money due to impulsive decisions, while Michael built a solid portfolio.

Today, Michael enjoys financial freedom, while Jake is still struggling to recover.

What made the difference? Knowledge, discipline, and the right skills.

Making money through investing is not about getting lucky. It’s about learning key principles, making smart choices, and staying committed to your goals. Whether you're investing in stocks, real estate, or alternative assets, the right approach can change your financial future.

This journey is not always easy, but with the right mindset and consistency, success is possible.

90% of new investors lose money in their first year. Here’s how you can be in the 10% that succeed.

Here are 16 essential skills you need to develop if you want to build long-term wealth through investing. These skills will help you avoid costly mistakes and make informed decisions:

Example: If you're analyzing a company to invest in, you should know how to interpret financial statements. Look for strong revenue growth, a healthy profit margin, and a low debt-to-equity ratio. A financially literate investor avoids businesses with declining earnings and excessive debt.

Example: Suppose you invest in tech stocks but also allocate a portion of your portfolio to bonds and commodities. If tech stocks fall, the other assets can help offset the loss, ensuring your portfolio remains stable.

Example: A real estate investor studying market trends might notice that a particular city is experiencing rapid population growth. By investing in rental properties there, they can capitalize on rising demand before property prices surge.

Example: Warren Buffett famously held onto Coca-Cola stock for decades because of its strong fundamentals. Many investors panic-sell during downturns, but disciplined ones stick to their strategy and benefit from long-term appreciation.

Example: A venture capitalist may connect with entrepreneurs and industry experts at networking events, gaining access to exclusive early-stage investment opportunities that are not available to the public.

Example: During a stock market crash, an emotionally stable investor sees it as a buying opportunity instead of panic-selling like the masses. This ability to stay rational allows them to accumulate assets at a discount.

Example: A crypto investor who keeps up with blockchain technology and regulations can make informed decisions before government policies negatively impact their holdings.

Example: A real estate investor negotiating with a seller may highlight necessary repairs to lower the price or negotiate better financing terms, significantly improving their return on investment.

Example: A savvy investor might use tax-advantaged accounts like an IRA or 401(k) to shield investment gains from taxes, or employ tax-loss harvesting to offset capital gains taxes.

Example: An investor divides their portfolio among equities, bonds, real estate, and alternative assets. When one sector underperforms, the others help balance the risk and maintain overall growth.

Example: In the early 2000s, investors who recognized the potential of e-commerce companies like Amazon were able to generate massive returns as the industry expanded.

Example: A rental property owner ensures their income covers mortgage payments and maintenance costs while setting aside reserves for future investments or emergencies.

Example: A real estate investor might use a mortgage to buy properties instead of paying cash, allowing them to acquire multiple properties and multiply their potential returns while managing risk carefully.

Example: A stock investor might start a side business related to their expertise, creating multiple income streams that provide additional capital for investments.

Example: An investor who purchases stocks with a clear target sell price avoids emotional decision-making. If a stock reaches its valuation goal, they exit and reallocate funds to new opportunities.

By incorporating these elements, you can reinforce your investing journey and ensure long-term success.

Why This Matters:
Not everyone has the time or confidence to manage their own investments. A great option for long-term wealth building is letting professionals do it for you.

Platforms like eToro allow you to copy the portfolios of successful investors, making it easier to benefit from their knowledge and strategies without having to spend hours researching.

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and you can start copying our portfolio here: https://etoro.tw/41jJa59

Our diversified portfolio spans stocks, bonds, cryptocurrencies, and ETFs, blending value, growth, and income strategies. To enhance stability, we allocate assets across different markets. While our focus is on long-term investing, we occasionally rebalance by taking profits and reallocating to stronger opportunities.

📈 Performance Highlights: ✅ YTD: +6.01% ✅ 2-Year Return: +63.11%

✅ Compounding Strategy: We reinvest our dividend yield and we aim for an average annual return of 12%.

Sarah, a busy young professional, wanted to invest but had no time for research. She started using eToro to copy a well-known investor’s portfolio. She stayed patient and followed a long-term strategy, and after five years, her $5,000 turned into $50,000. Her key to success? Choosing a skilled investor and sticking to the plan.

This week, pick one of the 16 skills from this list and focus on improving it. Whether it’s understanding financial statements, diversifying your portfolio, or learning about tax strategies, take action now to improve your investment knowledge!

By using these skills and strategies, you can take control of your financial future and make smarter investments that grow your wealth over time. The key is consistency, learning, and making decisions based on knowledge, not emotion.