Whether your goal is to become a real estate tycoon with hotels and buildings around the world, a millionaire who earns over $20,000 in monthly dividends, rent payments, and interest income, or a financial mastermind with a track record of quarterly gains, there are a few traits which most of the top investors all have in common. These traits typically fall into three broader categories which include, the ability to accurately value assets, a thorough understanding of risk, and a sound temperament. By working on these traits, you’ll greatly increase your chances of reaching the goals you’ve set for yourself in the world of investing.
What follows is a further breakdown above the above traits. Continue reading to learn what it takes to become an investing success:
They Are Constantly Seeking To Improve Their Knowledge
One of the standout quality of any successful investor is their drive for continued learning. Most successful investors are incredibly proactive learners, who spend a great deal of time studying. They typically are big time readers and know that there is always something new to be learned. They jump at any opportunity to learn something new and are more than willing to invest some money into furthering their knowledge when necessary. They read journals, books, and magazines on topics ranging from investing to marketing and personal development. It’s not uncommon to find them attending regular seminars in order to further increase their knowledge.
They Don’t Invest Without An Exit Strategy
Any successful investor knows that there is always a chance that things can go south. They realize that though they’ve calculated the risks, the future is uncertain, and so they’ve prepared for it much in advance. An average, everyday investor, will attempt to predict what’s ahead for their investments. The real standout, successful investors prepare for the worst, while also having a plan in case of success.
This is often times why you’ll find that the great investors are making money regardless of how the market is doing overall. If you want to be among the great investors, you’ll want to make sure you have a solid plan in place before you commit to any investment.
They Have A Strong Hold Over Their Emotions
Any investor worth their salt knows that one of the main drivers of the market is emotion. Large dips and surges in the market are often caused as a result of two main emotional factors, namely greed and fear. An average investor will invest based on these emotions where a great investor keeps their emotes under wraps when making any investment decision. They don’t let the sensationalism of the media, investment pundits, or financial advisors sway their decision of investing techniques.
A good investor will also be level headed in the face of a lose, just as much as when they realize a large gain. They keep their ego under wraps when they net a hefty sum and don’t become discouraged and leave their investment plans and strategies behind in the face of a loss. Regardless of the current market outlook, they stick to the 50-50 chance of losing or winning.
They Maintain Focus
Great investors keep their eyes on the prize, but focus on the road ahead. They don’t get ahead of themselves and take steps one at a time. For example; Tim Ferris has stated on his blog that he would rather stick with angel investing rather than dip into the stock trading market as he realizes that angel investing is better. Tim Ferris focuses on angel investing, Warren Buffet focuses on stock trading, Donald Trump on real estate, and Jim Rogers on commodities future.
They Have A Solid Background In The Financial Industry
A strong background in finance and a lot of experience are all common traits of the great investors. In order to become a successful investor, you need to dive in and gain as much experience as you can. In order to build up a solid foundation, successful investors are always reading financial journals and books, learning from investing mentors, attending seminars, and listening to tapes. After gleaning all the information they can from these sources, they head out and act on what they’ve learned.
An average investor will try to gain knowledge and improve their investing skills while not taking any chances in an attempt to avoid losing. Successful investors know that in order to really learn and gain useful experience, sometimes losing is required. There is knowledge to be gained from losing sometimes!
They Have A Solid Investment Strategy
In order to be amongst the greatest of investors, like all the rest, you’ll want to find an investing strategy that works for you and then stick with it! Some investors will follow the portfolio focus strategy, while others may decide to go with the portfolio diversification strategy. Every investor will have their preference in strategy. It’s important that you learn of the different techniques out there and then learn all you can about them in order to succeed.
If you’re unsure of which road to take, consider reaching out to a Pumped On Property Buyers Advocate to find the right investing strategy for you
They Learn From Their Mistakes
When you hear successful investors talk about investing experience, they are likely referring to the lessons learned from making mistakes, the trails and tribulations they’ve faced, and the gains they often achieve. You wont ever be a truly great investor if you’re not willing to make a few mistakes, and then learn from them. When a successful investors realizes they’ve made a mistake, they are not discouraged by this as they realize that failures are par for the course on the way to becoming one of the investing greats. While the average investor will see a mistake as solely a negative thing, a good investor sees these as a chance for them to learn and improve their craft.
If you want to be a great investor, emulating some of the best is a sound strategy! The best investors are constantly learning from their mistakes and each other, and are always striving for the next great opportunity. Try to take these traits to heart and make them a part of you and you’ll find your investment game starts to improve!