5 key traits that many successful investors share

Five traits of successful investors

Financial Literacy
Ida Kassa web profile 400x400
Ida Kassa Johannesen

Head of Commercial ESG and Education

Investing can be a powerful way to achieve potential financial stability and possibly build long-term wealth. While anyone can be an investor, achieving long-term success is rarely a matter of luck. It demands intentional effort and discipline. Successful investors consistently grow their portfolios over time, often matching or outperforming broad market benchmarks.

So, do you consider yourself a successful investor? Let's explore 5 key traits that many successful investors share:

1. They invest and stay invested

It may sound obvious, but to be a successful investor, you must first be an investor. Getting started is relatively easy; the real challenge lies in staying invested. Successful investors don’t just dip in and out of the market; they commit and remain invested, even during periods of volatility. That resilience often comes from maintaining allocations and holding instruments they understand and are comfortable with.

Over time, experience has taught them that trying to time the market or selling during downturns rarely leads to better outcomes. Instead, staying the course, especially during crises, often proves to be the wisest and most rewarding decision.

A performance analysis by T. Rowe of 3 hypothetical investors with USD 10,000 invested in the S&P 500 index over the 20-year period ending 31 Dec 2024, concluded that staying invested led to significantly higher returns.

  • Investor 1 stayed invested and ended up with USD 61,750
  • Investor 2 missed the 10 best days and ended up with USD 22,871
  • Investor 3 missed the best 20 days and ended up with USD 9,724

2. They build a diversified portfolio

Successful investing isn’t about picking a few stocks based on tips from friends or casual conversations. It’s about building a well diversified portfolio that includes a range of assets across sectors, geographies and investment styles.

Diversification is essential. While it doesn’t guarantee gains, it helps manage risk and enhances the potential for returns by spreading investments. With a diversified portfolio, when one part of the market is down, others may be up, creating balance and resilience across different phases of the economic cycle.

Successful investors often start with a core portfolio that reflects the broad market, typically through ETFs, and then strategically add satellite investments in more specialized areas like international equities, emerging markets, small-cap stocks or derivatives.

How to do it

Use Saxo’s screener on our platforms to find ETFs for building a diversified portfolio.

For the core portion, look for:

Broad market ETFs (e.g., MSCI ACWI, S&P 500, MSCI Europe)

Bond ETFs (e.g., Global government Bonds, Global Corporate Bonds)

For the satellite portion, target:

International markets (e.g., MSCI Emerging Markets, MSCI EM Asia, MSCI EM Latin America, MSCI EM EMEA)

Sector-specific ETFs (e.g., tech, healthcare, clean energy)

Thematic ETFs (e.g., small-cap, AI, ESG)

3. They invest regularly

Unless you're among the fortunate few with a large sum to invest upfront, reaching meaningful financial milestones (yes, even that million-dollar mark) requires consistent contributions over time.

Successful investors make it a habit to invest regularly, steadily adding to their portfolios to harness the power of compounding. Regular investing simply means allocating a portion of your income or revenue to the stock market on a consistent basis. The amount and frequency can vary depending on your financial situation, but contributing a fixed percentage of your income on a monthly basis is a practical and effective starting point.

How to do it

Set up an automated transfer from your bank account to your investment account. Alternatively, use tools like Saxo AutoInvest, a monthly ETF savings plan (available in some markets) designed to automate investing and make it easier for individuals to build long-term wealth.

4. They think long term

Building wealth through investing may be achievable, but it is a long-term game.

Successful investors understand that meaningful gains often come from holding quality investments over time rather than chasing short-term wins in markets. They recognise that markets fluctuate, and don’t panic sell when things get rough. They invest with a clear goal in mind, lay down a solid foundation, and stick to their plan even during downturns. The objective remains their focus, and they stay the course until they reach it.

Investing can play a key role in helping people achieve potential financial stability. Whether the goal is to retire comfortably, build wealth, or simply keep up with rising costs, investing for the long term is one of the most effective ways to possibly build wealth.

5. They live within their means

Successful investing is part of a disciplined, holistic approach to managing personal finances. Consistent investing requires having funds available after covering essential expenses, which means maintaining financial order.

Living within one’s means helps reduce the risk of needing to liquidate investments at inopportune times to cover unexpected expenses or liabilities. It’s not necessarily about being frugal; rather it’s about understanding what one can afford and making intentional, rather than impulsive, spending decisions.

How to do it

Start by understanding your total spending, distinguishing between essential and non-essential expenses. Aim to save and invest a fixed portion of your income. Then, reduce non-essential expenses to create room for long-term financial goals.

Final thoughts

Successful investing isn’t about luck; it’s about discipline and mindset. With the right habits, you can build a portfolio that potentially grows steadily over time. Successful investors come in many forms. You don’t need to embody every trait listed above, but take a moment to reflect on how many resonate with you. If some aren’t yet part of your toolkit, consider adopting them. They could be the key to unlocking even greater success in your investing journey.

Quarterly Outlook

01 /

  • Q4 Outlook for Investors: Diversify like it’s 2025 – don’t fall for déjà vu

    Quarterly Outlook

    Q4 Outlook for Investors: Diversify like it’s 2025 – don’t fall for déjà vu

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Q4 Outlook for Traders: The Fed is back in easing mode. Is this time different?

    Quarterly Outlook

    Q4 Outlook for Traders: The Fed is back in easing mode. Is this time different?

    John J. Hardy

    Global Head of Macro Strategy

    The Fed launched a new easing cycle in late Q3. Will this cycle now play out like 2000 or 2007?
  • Q3 Investor Outlook: Beyond American shores – why diversification is your strongest ally

    Quarterly Outlook

    Q3 Investor Outlook: Beyond American shores – why diversification is your strongest ally

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Q3 Macro Outlook: Less chaos, and hopefully a bit more clarity

    Quarterly Outlook

    Q3 Macro Outlook: Less chaos, and hopefully a bit more clarity

    John J. Hardy

    Global Head of Macro Strategy

    After the chaos of Q2, the quarter ahead should get a bit more clarity on how Trump 2.0 is impacting...
  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist


Business Hills Park – Building 4,
4th Floor, office 401, Dubai Hills Estate, P.O. Box 33641, Dubai, UAE

Contact Saxo

Select region

UAE
UAE

All trading and investing comes with risk, including but not limited to the potential to lose your entire invested amount.

Information on our international website (as selected from the globe drop-down) can be accessed worldwide and relates to Saxo Bank A/S as the parent company of the Saxo Bank Group. Any mention of the Saxo Bank Group refers to the overall organisation, including subsidiaries and branches under Saxo Bank A/S. Client agreements are made with the relevant Saxo entity based on your country of residence and are governed by the applicable laws of that entity's jurisdiction.

Apple and the Apple logo are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.