Not all investors succeed. That’s a hard fact in the world of investments. However, a number of them do succeed because of certain factors. If you’re planning to invest, maybe you should read on first and learn what makes certain investors successful.
Everything They Do Is Meant to Create Money
What are the reasons that you invest in something? It’s because you want to earn money. So, you must develop the mindset that everything you do is geared towards making money. Hence, successful investors always make decisions based on the need to generate funds for whatever endeavors they are planning.
Robert Kiyosaki, for instance, is popular for his Rich Dad, Poor Dad books. However, that was just a stepping stone. Due to the popularity of the book, he has successfully achieved a source of passive income. This passive income provided the funds needed for his other investments, and programs that he establishes also to earn money.
They Are Highly Disciplined
Successful investors are highly disciplined, especially when it comes to money. Admittedly, it’s very difficult to control oneself once you have on your hands a huge sum of money. Most people could think about going on a grand vacation with all that money, but that’s simply throwing your hard-earned cash to the wind.
What successful investors do is that they discipline themselves. Yes, they will want to reward themselves with a vacation or buy something, but they will never spend more than 40% of their income on trivial stuff. Again, they are always oriented towards making money so they will always leave some amount behind to invest on something.
They Are Rarely Emotional With Their Decisions
When making decisions in their investments, successful investors rarely let their emotions dictate them. They are rarely driven by fear nor by greed when they make decisions especially in stock market trading.
True, they make mistakes. They’re only human. But they rarely make failed trades just because they became afraid that the stock price will go all the way down, forcing them to sell their holdings without maximizing their profits. They also don’t make the mistake of holding on to their stocks just because they think the price can still go any higher.
They Are Well-Educated
We’re not talking about college degrees here, although it’s a bonus when one is an investor. The point here is that, successful investors always invest in necessary education. They study the rules of the trade, and the capabilities of the tools that they use. They are always inclined to read whatever news there is in the business sector, and to research about stuff they don’t know like the actual performance of a stock they’re interested as well as possible developments that could drive the price up and down.
It’s fun being an investor. It takes a lot of challenge, discipline and education to succeed. Those are the three qualities that you have to cultivate in you before you can become a successful trader/investor.
Do you want more articles like this? Feel free to follow our blog and our social media accounts.
Photo credit : flickr.com
