Avoid chasing returns

When you see a particular asset performing well, such as shares or property, it's tempting to pull your money out of your current investments and switch over. But history shows that chasing returns is not the best strategy. Remember that a dog who chases its own tail goes around in circles.
Keep it steady

Question your instincts
Expert investors don't wake up each morning with a new theory. They draw on analysis, insight and professional expertise; develop a strategy; and put it into action. So unless you are delivered tomorrow's newspaper, you should think twice about your predictions and gut feelings.

Seek advice.
  
Don't live in the past
It's rare for a particular asset class or an investment to have the best performance two years in a row. It has happened only twice in the past 20 years. There's no guarantee last year's winner will shine again.

Download BT's Investing Truths booklet to find out more.

Don't sabotage yourself
A BT study of investor behaviour shows that an investment manager is much more likely to take a methodical and analytical approach that helps them avoid mistakes new investors can make on their own.

Download our brochure, Investor Misbehaviour, for an analysis of poor investor behaviours that can sabotage your own success.
Woman with paddle
Keep cool in a crisis
If the investment market takes a sudden downturn, it's hard not to panic. But history shows that crises pass. If you are investing over the long term, the ups and downs eventually tend to smooth out.

Avoid the traps.
Use experts
Unless you have specialist expertise in financial markets and access to advanced research tools, it is difficult and time-consuming to do well by yourself.
Find out more about investment
Download a copy of Investing Truths (PDF, 279 KB) (opens a new window).
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's Investment funds.