Investing isn’t just an art, it’s a science as well. In current abruptly changing business world it has become a very important question that who is a good investor?
- Is someone with higher financial education?
- Is a person who is rich with abundance of wealth?
- Is a person with high intellectual wealth?
- Is a person who is exceptionally lucky?
These all qualities are pertinent but there is no. of cases where investors with all these qualities suffer losses of billion dollars. Researchers have proven over the period of time that certain personal traits are highly effective in successful investors. We will be discussing these in rest of the section of this article:
Good Investor is Self-Controlled/Calm
It is obvious that market is volatile. There can be times when market may behave irrational, in such case the investor should remain calm and work on future algorithm. To be a triumphant a good investor should focus on long run game and foster emotional harness rather to respond market sentiments abruptly to be secure in short-term panic
Good Investor is Disciplined
Discipline co-exists with calmness. A successful investor works on well evaluated long-term strategy and avoid short-term market trend that led him to deviate. Discipline is highly important to address market fluctuation based on predetermined counter strategies. So, in order to reap lucrative benefit develop and well thought plan, develop a course of action and stay focused to target.
Good Investor Practice Optimum Risk Profiling
Risk in one of the unavoidable parts of investment and returns are directly correlated to it. Good investors always ensure risk profiling of investment by working on different risk mitigating strategies. Risk management strategies involve setting realistic targets, diversify investment portfolio and defining an exit plan
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Good Investor always Focus Long Run
A good investor always has well defined long-term vision. We cannot negate the importance short-term gains but ability to view greater image will actually define a successful investor. Doesn’t matter you are planning for new house, financing child’s education, or building wealth, long term investment approach will keep investors focus on their ultimate financial objective
Good Investor Is Not Derived By Emotional Intelligence
Usually, investors are driven by emotions like greed or fear, in such case rational assessment cannot be established. Emotional intelligence has become the most crucial aspect of successful investment management. Investment market is highly responsive to investor’s emotions and managing own emotion in the times of market volatility is highly important
Keep on Learning
Learning is the key to success in every sphere of life, Same applies to be a good investors. Every investor make mistakes in business but one with learning mindset always overcome these mistakes and present some great success story. keep in mind no one knows every thing and in order to respond changing investment scenarios a good investor should keep his knowledge base updated.
Finally, successful investment goes far beyond individual’s financial acumen, it is highly dependent on above discussed personal traits. By practicing investors can finally reach their financial targets
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