If you're like me, you probably couldn't pry yourself away from watching swimming-phenom Michael Phelps claim an astounding eight gold medals at the Olympic Games. Not two, not five, but eight! I was absolutely transfixed watching him smash world records, one after another. If I didn't see it with my own eyes, I'm not sure I'd believe it.
Just imagine being 23-years old with the entire world watching and waiting to see if you have what it takes to make Olympic history. Talk about pressure! But Phelps had laser-like focus. He had a goal and knew what he had to do to make it happen. So despite the naysayers, Phelps moved from race to race with precision and never gave up on his dream.
As investors, we can all learn a lot from Michael Phelps. Phelps is a model for staying the course and remaining focused even during adverse conditions. During his fourth gold-metal attempt his goggles "malfunctioned" and filled with water, leaving him unable to see during the last 100 meters of the race. Even blind in the water, he didn't give up, he didn't veer off course and instead, he won the race while breaking a world record.
In today's market, you may feel like you're underwater with leaky goggles. But like Phelps, you need to remain focused and do what it takes to meet your investing goals. To that end, I'm going to lay out a three-step action plan for you in some Phelps-like terms:
1. Eat Right: Keep your portfolio healthy by avoiding industries like financials that will weigh your portfolio down. Only add companies with strong fundamentals stemming from robust demand. PortfolioGrader Pro is a great tool to help you weed through over 5,000 Wall Street stocks.
2. Get a Good Workout: Don't sit on the couch doing nothing with your money. Make sure you're buying the right growth companies and make your money work hard for you. Earning 2% in a savings account won't win any awards. My Blue Chip Growth portfolio, a portfolio of low-risk blue chip stocks, has beaten the market 3-to-1 for over 10 years.
3. Be Mentally Fit: In sports and investing, your mindset is key to success. Don't let emotions guide your investments! If you don't have what it takes to be objection, try using a stock-rating tool to help keep you unbiased. Yahoo and MSN have some great ones. And as I've said, I've created my own, PortfolioGrader Pro, which is one of the easiest to use, and more importantly, the A-rated stocks are proven to outpace the S&P 500.
So stay focused fellow investor. Even in this most turbulent of markets, it is possible to go for the gold in investing.
