9 Signs You're An Investment Expert
If you have these qualities then you are an investor
To be an investor is not a small feat. It requires proper business intelligence and analysis to know what stock or company to invest in and the right timing. Most times to invest is betting on the financial future of a company, product, or stock to increase in value over time, consequently profiting from dividends.
Here are nine qualities or signs that you must have to become a successful investor:
1. Learning Quickly From Mistakes
Mistakes in life are inevitable, but learning from your mistake will be worthwhile. Top and skilled investors never tell you how they never made a mistake all through their careers.
They will tell you about all the mistakes the made, the lessons learned from them, and how they were able to become profitable. A successful investor does not wallow in his mistakes, they learn quickly from them and move to the next kill.
They know mistakes are part of the game and see it as an opportunity to learn something new.
2. Using Leverage To Your Advantage
In the world of investment, you must use some sort of leverage to get ahead in the game. This leverage may include making use of viable financial professional advice, insider information, etc. Without any form of leverage on your part as an investor, you'll be crushed to bits.
3. You Have Discipline At Your Core
To be successful in the investment world, you must have a set of rules that guide your actions and execution. It takes a lot of discipline to stick to Investment strategies, despite the financial market distractions and noise. When discipline is lacking, mistakes become inevitable.
4. You Are Persistent
It's not easy when you hold into a once winning investment strategy during a losing streak. A successful investor doesn't jump from one strategy to the next, they have one strategy and the stick to it no matter what. That's one of the secrets of their profitability in the long-term.
"When everything seems to be going against you, remember that the airplane takes off against the wind, not with it." -- Henry Ford
5. You Are A Risk Taker
You can't make a substantial amount of profit in investment without a given amount of risk. No risk, no reward. Risk management is also key because not knowing what you're doing will put you in harm's way. There'll always be a 50–50 probability of success or failure in investment.
6. You Always Have An Exit Plan
The financial markets are in constant change in sentiment. The value of a stock may be overpriced today and underpriced in minutes based on incoming news or events.
Successful investors always know when to exit from an investment when it is profitable or cut their losses and move on. Stocks don't go up forever or down forever.
7. You Are A Proactive a Learner
The difference between an average investor and a successful one is the time spent studying new tricks. A successful investor spends time studying and getting better at his craft.
They constantly learn new things and unlearn outdated ones to stay in the game. They always have an open mind to absorb new knowledge.
8. You Are Patient
Patience is truly a virtue in the world of investment. This is a very tough quality to have and truly difficult to practice when you are seeing a stock you bought at a certain price, nosedive.
Successful investors are always patient, and the wait for their plans to actualize. Without patience, you can pull out from a good investment and jump into a bad one. It's like jumping from the frying pan to fire.
8. You Have Your Emotions In Check
Emotions are a huge death trap in any form of investment. This is one of the reasons most major banks and hedge funds use automated systems to manage and execute their trades.
The reason is, these systems have no emotions, the execute based on certain criteria that have been met in the logic programmed into them.
This is one of the toughest aspects of being a successful investor. Successful investors are mindless machines when it comes to investing, it takes them years to master putting emotions in a box.
Fear and greed are very popular emotions that drive the financial markets. Average investors invest based on fear or greed. A successful investor keeps these beasts under lock and key.
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