Good investment doesn’t happen accidentally. Successful investors consistently work at it. Throughout our lives, we come across a handful of great investors and plenty of not-so-good ones. It’s pretty obvious why the good ones are doing well — they all have certain things in common. The first, without a doubt, is intelligence. They study, observe, and learn. If the thought of not having what it takes to become a successful investor bothers you, know more about the habits and traits that help people build wealth through investing. Moreover, don’t be concerned if you don’t possess all or majority of them. Instead, look for ways to address your weaknesses and build on your strengths. After all, it’s rightly said, half the battle can be won if one gets into the right mindset. Not for nothing did a renowned investor say, “The fault, dear investors, is never in our stars — nor stocks — but in ourselves!”So, start with these ways to become a better investor and when you finally learn the tricks of the trade, never stop.
We have all heard the phrase “patience is a virtue”. And, it makes sense when you are focusing on growing your wealth through investment. A lot of people invest for more than several decades to fulfil their long-term financial goals. What’s important here is being able to consistently invest money, which sometimes requires you to wait for years to see significant results. And during such times, those who stay the course get rewarded with big profits.
Tip: If you think you lack patience, consider the option of automating your investments so that you do not have to think about them or track how they are performing now and then. Stick to your investment strategies and re-look at your financial plans at a set time every year.
Treat your money like sand
As Eugene Fama, a popular academic in the area of finance, once said, “The more you handle your money, the less you have it.” Moving money involves transaction costs or even tax consequences, and sometimes, you may move it at the wrong time. Backed by the fact that, year after year, reports suggest that average investors underachieve the market primarily due to their poor timing abilities.
If you want to fare better than an average investor, the time when you move money, make sure it is a part of a well-designed investment plan and not an impromptu, last-minute reaction.
Seek help when needed
Taking time to learn by yourself is important and a great act of self-dependency, but savvy investors also understand when it is time to learn from others. If …….