Investing can seem complex and intimidating. But the habits that help you succeed are simple. It’s important to build a smart plan and stick with it, save enough, make reasonable investment choices, diversify your portfolio, and be aware of taxes.

Key to successful investing is the practice of spreading your investment dollars among different investments, asset categories and even individual securities within an asset category. This reduces your exposure to risk by reducing the overall volatility of your returns and may help you achieve your financial goals more reliably. Diversification isn’t a guarantee of gains or that you won’t experience losses. However, it’s a tool that can help you limit your loss potential without sacrificing too much of your potential for gain.

Riding out market volatility

It’s difficult to hold on during volatile periods, but the key is staying the course and insulating yourself from the investment crowd. At extremes, the crowd is invariably wrong — whether it’s buying at a high or selling at a low — and that can have costly consequences.

Your financial plans and investment portfolios should reflect your unique circumstances. It’s important to review them regularly to ensure they’re on track to meet your long-term goals, especially when economic conditions change. It’s also a good idea to periodically adjust your investment mix, to reflect your current needs and circumstances. In doing so, you’ll be able to ensure that your investments remain appropriate for your goals and that they have the growth potential you need for your future.