In the last article, we discussed some qualities that separate successful investors from those that simply make up the numbers. Investment is a beloved game and it is also a way of life to some while to others it is a means to an end. While the latter group look and sound more serious, the few that make up the former are those that hold sway in the world of investment as it is a code they live by, not just means to an end. From the likes of Donald Trump to George Soros who both have different ideologies on investment but the same essence when the fundamentals are placed before them.
In this article, we will consider some other qualities that separate great investors from mere investors. These other qualities are:
Successful investors are persistent
There is no greater risk than putting your money in a dream and watching how it turns out even regardless of pre-calculations and strategy. Most times, events seem to turn out the very way you expect them not to and sticking to your investment strategy then becomes a thing of essence. Mere investors would most likely switch strategy but great ones would stick to theirs; win or lose. While this sounds almost stupid, most successful investors stick to their choice strategy no matter what.
They are disciplined
Hardly any success can be achieved on earth without this quality; discipline. Discipline is an essential component of successful men and to be a successful investor it is an essential commodity. Great investors have been known to be disciplined as it concerns investing rules and principles and they have also been known to place themselves under strict self imposed standards. Discipline is what makes them stick to their strategies and streamline their efforts and choices in spite of which lane the market is taking.
They understand leverage thoroughly
While this might scare an ordinary man or a mere investor, successful investors understand the meaning of leverage and utilize it to the fullest. They understand how to make money by using other people’s money while an average investor would want to use his personal money. Other forms of leverage used by successful financial investors include: creating a great professional team, investing experience or inside information. These make successful investors stand out from the mammoth crowd.
Successful investors thrive on risk
While investing itself is a risk as one delves into the dark expecting to find the light at the end of the tunnel, ignorance is a greater risk. Every experienced investor understands that the investment arena deals with 50-50 chances of success; no more and no less. It never changes; it is always a 50-50 probability of success or failure no matter how much inside scope you have. But while experienced investors invest in a strong risk management system (Hedge), the others go in naked and when it falls through, they are badly hit.
They learn from their mistakes, quickly
You can never become a successful investor without some very serious blunders and miscalculations. But while some get broken by their mistakes, successful investors realize that it is one of the things they need to get better, so they stand up and dust themselves clean. While mere investors perceive mistakes as a disaster, successful ones see it as an opportunity to learn and they do so quickly with no intentions of repeating them.
They create a team of experienced and savvy professional advisors
This is a form of leverage on its own. A very important one at that, and successful investors are known for this while others scurry around going by readings off the hands of pundits and other publications. Great investors have a network of friends who are also professional investors and they share ideas and brainstorm on investment challenges which gives them an edge over lone ranger investors.
The qualities listed in this two-part article help in distinguishing between average and exceptional investors. At PitchOffice, we aim to ensure that you don’t just invest but do so shrewdly.
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