3 New Year’s resolutions to make you a better investor

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. If you’re looking for a New Year’s resolution to make 2020 a great year for you and your family, you could hardly do better than getting your investing plans sorted out. Here are three of the best resolutions for 2020.Resolution 1: I will do my due diligenceToo many investors lose money because they don’t do enough research.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…You wouldn’t buy a car without going to see it first, looking under the bonnet to see the state of the engine, checking its fuel consumption against its rivals, or even asking whether the price you’ll pay is in line with its true market value.And yet some investors will buy shares sight unseen. Some will buy shares based on tip-offs from anonymous rampers on bulletin boards, without checking whether a business is making profits, how much debt it has, what the company’s plans for expansion are or any of the other useful markers that can give you a reasonable expectation that the share price or dividends will increase.Some will even make their next buying decision based solely on a flashy double-digit dividend or a cheap-looking price-to-earnings ratio.Resolution 2: I will make a plan and stick to itThe real portfolio killers are the decisions you take on a whim. Randomly buying shares in a gold or silver miner you’ve never heard of because some bloke on Facebook shows you a chart that the share price is up 20% in a week just won’t do. Sadly, it’s all too common.The key to getting the benefits you desire is to take a little time to figure out exactly what you want in the first place. From this structure, you can see clearly how you are going to invest.Grab a pen and paper (yes, I am advocating writing it out longhand as it’s too easy to get distracted if you use your phone) and answer these questions.Am I going to be a value investor? That is, will I buy solid FTSE 100 companies that I believe in long term, but whose share price happens to be depressed in the short term, so I can pick up the shares relatively cheaply?Am I looking to buy FTSE 100 companies with strong dividends that I can use to help fund my living expenses (now or in the future)? Or am I mainly looking for growth? Am I a buy-and-hold investor, or do I want a quicker turnover in my portfolio?Do I want to buy FTSE 250 or AIM-listed companies, those whose dividends may be relatively small and may only pay enough to cover my trading costs, but whose share price might double over the next five years?Resolution 3: I will admit I’m not always rightThe ‘sunk cost fallacy’ is a major problem for many of us. Once you’ve researched a share, dug into its financials, seen its future potential and competitive advantage, and pulled the trigger, you become irrevocably emotionally attached to it.I know this to my detriment. I loved the Sirius Minerals story, so why didn’t the market agree with me? I carried on averaging down month after month, throwing good money after bad, until my investment was worth next to nothing. Don’t be like me. Admit when you’ve got it wrong, get out and use your hard-earned cash for a better investment. Image source: Getty Images See all posts by Tom Rodgers I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Our 6 ‘Best Buys Now’ Sharescenter_img “This Stock Could Be Like Buying Amazon in 1997” 3 New Year’s resolutions to make you a better investor I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Tom Rodgers | Monday, 30th December, 2019 last_img read more