1. They are focused “The men who have succeeded are men who have chosen one line and stuck to it.” – Andrew Carnegie Successful investors are focused on their investment vehicle. They take it one step at a time; one investment at a time. For instance; Tim Ferris said on his blog that he would rather stick to angel investing than attempt to stock trade because he understands angel investing better.Warren Buffett is focused on stocks, Tim Ferris on angel investing, Jim Rogers on commodities future and Donald Trump on real estate.
2. Successful investors use trend to their advantage “Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is trend.” – Ajaero Tony Martins
Another attribute of successful investors is that they know how to use trend to their advantage. Average investors panic over market fluctuations but professional investors welcome these fluctuations because it’s based on these fluctuations that they make their money. Successful investors use trends such as market sentiments, political instability and company’s crisis to their advantage. “Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it.” – Warren Buffett
3. They are persistent
“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” – Henry Ford
Sticking to your investing strategy whether you are winning or losing requires a great deal of persistence. Average investors lack persistence and that’s why they will forever remain average. They jump from one strategy to another and are always looking for the next hot tip. “Most people give up just when they are about to achieve success. They quit on one yard line. They give up the at last minute of the game one foot from a winning touch down.” – Henry Ross Perot
4. They thrive on risk
“Risk comes from not knowing what you are doing.” – Warren Buffett
Investing is a risk but not knowing what you are doing is a greater risk. Every professional investor, whether on the winning or losing side still respect the 50-50 probability of success or failure. A major difference between a professional investor and an average investor is that a professional investor will always invest with a strong risk management system in place. Have you ever heard of the word “Hedge?”
“Seek advice on risk from the wealthy who still take risks, not friends who dare nothing more than a football bet.” – J. Paul Getty
5. Successful investors are disciplined
Successful investors are strict with themselves when it comes to investing.
Aside their investing rules and principles, they are still guided by a strong self imposed standard.
Professional investors know that it takes a great deal of discipline to stick to your investing strategies despite distractions from self proclaimed investment pundits.
“My two rules of investing: Rule one – never lose money. Rule two – never forget rule one.” – Warren Buffett
I want to state categorically that becoming a successful investor is within your reach. Just model the masters of the game and you will see yourself improving. Have a nice day.
Read Part 1 Here