Effective investors often share these 6 traits. These traits are useful for those who prefer to control their investing with a hands-on approach.

1. They start investing early. It’s math: The more years investors begin to invest, the more money they may be able to earn through the power of compounding. Starting early means a longer investment time horizon. And, a longer time horizon allows you to invest in assets that have more growth potential over time.

2. They prioritize their goals. With clear goals and a clear time frame, investors can prioritize. That helps develop asset allocation because an investor has time horizons around those goals.

3. They save consistently.. Consistently save a portion of their income generally reach their goals faster. Those who make contributions to their retirement savings every year, as opposed to those who skip some years, can accumulate more and are more likely to reach their goals.

4. They’re comfortable taking risk. Successful investors know that for the potential to grow their assets faster than inflation, they’ll have to invest in assets with a higher than expected return, such as stocks, which carry higher levels of risk.

5. They diversify. Investors spread their money among different asset classes — stocks, bonds, real estate, commodities, and others — and also diversify within those asset classes. That might mean, for example, owning stock of U.S. companies, as well as companies in other countries.

6. They’re tax-wise. Taxes should never be the sole driver of an investment decision, but making tax-wise investment decisions can help maximize after-tax returns. For example, investors might choose to move money from taxable accounts into assets with lower or no tax obligation, such as municipal bonds.