Investing is, by no means, an easy world to get involved in. If you are a beginning investor, it is difficult to see the kind of results that more experienced investors experience on a regular basis. Every investor has to work their way up from the bottom and that can only be done when you put yourself out there and try to discover your own identity as an investor.
That doesn’t mean, however, that you have to insert yourself into the process blind. Successful investors all share similar qualities, so keep these in mind for yourself as you begin your own journey – they are a good starting point that you can hone in on as you create your own identity.
They set realistic expectations.
Starting out, your portfolio will not be as strong as you want it to be. This will come over time as you learn to identify the best investment opportunities. But be mindful that even after you become more experienced, your portfolio may not be exceptional every single year. A good investor will not let these fluctuations in numbers cause them to make irrational decisions or to lose faith in their strategy, especially if these fluctuations are very infrequent. The best way to measure your portfolio’s performance is in periods of 10-year increments.
They are constantly learning from their experiences.
If you want to be a successful investor, one of the most detrimental things you can do to yourself is to become stagnant. Always do your research; always keep an open mind. If a decision you make fails, learn from it moving forward. Even if something you does succeeds, still use that as a learning opportunity for future decisions.
They are practiced in patience.
Never invest with your emotions. That only leads to rash decisions, which oftentimes means pulling out of an investment opportunity before you should. A successful investor knows that it takes persistence in order to get the most out of their strategy.
They surround themselves with other advisors.
In the world of investing, you may think that keeping your secrets and strategies to yourself will benefit you in the long-term, but it’s quite the opposite. Every successful investor surrounds themselves with both professional advisors as well as other investors. Be mindful of who you confide in – you should converse with other individuals who all have the intent of challenging one another rather than with people who only want to mirror what you are doing.