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This week on Money and Investing, Mitch Olarenshaw and I talk about why 80% of investors fail and what sets the top 20% apart.

If you’re aiming to build wealth through investing, here are the key points to focus on:

1. Avoid emotion-driven decisions

Many investors act on fear or hype. The top performers stay calm and make decisions based on facts, not feelings.

2. Have a written plan

Successful investors don’t wing it. They follow a plan written down – not kept in their head –and stick to it despite the noise.

3. Detach from the emotion of money

Money is often tied to emotion. Treat it as a tool, not something to hold tightly. Let it work for you by focusing on logic and education.

4. Learn from mistakes

Even experienced investors get it wrong. What matters is adjusting your strategy and improving over time.

5. Take a long-term view

Short-term thinking leads to poor choices. Give your investments time to grow, whether it’s shares or property.

6. Manage risk first

Protecting what you’ve built is more important than chasing gains. Have a strategy to limit losses and keep some breathing room.

7. Build solid habits

Discipline, education, and sticking to a strategy are what set successful investors apart. It’s not luck – it’s consistency.

Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.

For more info about Money and Investing, you can go to the podcast; read The Wealth Playbook: Your Ultimate Guide to Financial Security and The Wealth Playbook on Audible.

Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

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