Every investor, no matter who they are, is united by the same goal. That goal is simply to sell for more than they bought. Although investment and trading might seem simple on the surface, not everyone makes a gain from it. If you want something that will bolster your income, and you’ve settled on investing, there are a few traits you should have. Here are some of the traits of a successful investor.
First of all, a thirst for knowledge. In any professional career, there’s always something new to learn. As Charlie Munger once said, “If you stop learning, the world rushes right by you.” If you start investing without any prior knowledge, then you’re almost certain to make a loss. Even after gaining some experience, successful trading requires you to stay on top of all kinds of news channels and trends.
If you’re not interested in economics already, then investing probably isn’t for you. Even if you feel like an expert, look out for any kind of resources which will further your knowledge. Always keep up with a few good financial publications. You may even want to look into coaching services like this one: http://alternativeinvestmentcoach.com/ .
Another important trait, which some people find a little hard to believe, is pessimism. Although it may not be desirable in personal relationships, in investment it can be a lifesaver. With a lot of new traders, the habit is to wonder “how much money will I make from this?”
In reality, you should be wondering “what do I stand to lose?” I know that the typical image of the stockbroker is fairly headstrong and confident. However, if you let confidence turn into arrogance, you could stand to lose a lot. Many hedge fund managers attribute their success to their own self-doubt. When you make a decision, test it rigorously before going ahead with it. Look for the smallest of holes, and what they can mean. You can read about this attitude in action here: http://www.businessinsider.com/ .
Finally, self-discipline. If you’re wired in the right (or arguably, wrong) way, this won’t be a problem. I’ve seen brokers who look like they haven’t slept for the past month, but still manage to follow the markets obsessively. For some people, the money’s secondary. The sheer excitement of trading is what really gets them going!
However, if you want to invest for the extra income, then self-discipline is a must. The work doesn’t finish as soon as you buy a stock. Afterwards, you have to follow it religiously, and act on any unexpected turns or changes. It may come as a surprise, but you may also need the discipline to keep your hands off of your money. Successful trading all hinges on being able to cut your losses and milk your profits. If you want the best pay-out possible, you may need to be patient for a long time.
If you have these three traits, then you might be able to make an absolute killing through investment! Assess yourself and plan wisely before you start investing.