Quality of a good investor
Quality of a good investor
EFFECTIVE GUIDE AN AVERAGE INVESTOR uses his money and invests the rest; a good investor invests his money and uses the rest. Investing is a risk vs. returns game. Read ahead to know the makes of a good investor
PREDICT THE FUTURE Successful investors know that there are al two sides to an investment. They know that the future is unpredictable so they prepare in advance for it. Average investors try to predict the future of their investments; they count their funds and preparing an emergency fund.
While some have made lots of wealth but many of us have lost as well. The first characteristic of highly successful investors is that they are proactive learners. They spend more time studying than average investors. They are also voracious readers. Successful investors know that their cup of knowledge must never be full so they always keep their minds open; ever ready to learn. Other, than that, learn the key characteristics of a good investor to become one:
Failing to plan is planning to fail
A good investor will always have a clear goal. It is very important to have a plan to achieve the goals. Variations most likely tend to divert an investor from the agenda. Having a plan of action within a defined period of time for a particular return on investment is a sign of a good investor. They are prepared for the uncertainty of the market while the plans are usually made considering both the sides.
Listen to the world but do what is right A good investor knows the time. They keep an eye on the current scenario in the market. They update their knowledge about market activities and growth. Having a sound understanding of trends enables investors to review their plans and decide the term of the investment. Having an understanding of current trends and company market position makes one a good investor. They own their mistakes and learn not to make them again. It’s not necessary that the good investor jumps into the trends; he or she just does what is right.
Keep patience and carry on
Over a period of time, a good investor creates wealth due to his patients. It is probably the finest quality to have. A good investor has faith in his plans. They usually do not feel bad about the 10 percent downtick; they would rather sit tight to celebrate the 100 percent uptick. They are persistent about sticking to the plans. They usually do not get into the buy and sell trends.
Good investors know the inherent risk in investing. They understand their plans and analyze their expected returns. Being risk averse is a quality shaped by experience, knowledge, and confidence over the above mentioned key characteristics.
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