Do you have what it takes to be a successful investor? Here are the three must have attributes of a successful investor, patience, optimism, and education. Without these three attributes you are doomed to failure.
In the short-term stock prices go up and down. In the long-term stocks prices rise and dividends increase. Recessions come and go, nothing lasts forever. We may have a small down turn in the economy that last a few months to a recession that could last a year or two. As an investor you must have the patience to ride out the down turn. You must have the patience to stay invested even when the media is telling you to sell. Selling when prices are low is exactly the wrong time to sell; this only solidifies your losses. Have the patience to ride out any dips, and be prepared to reap the rewards when stock prices go up.
A successful investor is an optimistic investor. You must believe and have faith that the world is getting better, and that the economy will improve. Otherwise there is no point in investing if you think the world is headed for a recession, depression, or just plain down the toilet. If you believe that things will continue to get worse then you are just better off keeping your money under your mattress. Believe that things will get better, be optimistic about the future, and invest for yourself by yourself. How do I know things will improve? I can’t tell the future, but I do know that the economy has survived recessions, depressions, wars, natural disasters, the tech bubble, the credit crisis, national debt, and oil crises in the past. After each disaster the world has continued to move along, the economy has continued to grow. Be optimistic that the economy will continue to flourish in the long-term, and you too will flourish along with it.
A successful investor is an educated investor. No one cares more about your money than you do, so you owe it to yourself to learn how to invest responsibility. Learn how to minimize your risk and learn how to maximize your returns. Without investing knowledge you are just guessing and speculating, you might be better off buying a lottery ticket. It’s easy to sit back and not do anything, easy to relax and let the “experts” handle your money. But a life of ease will actually make you lose money in fees, and lost opportunity. Learning how to invest is not difficult, it just requires you to take the first step and begin your journey towards success.
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