The best character qualities that will help the investor make money

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The best character qualities that will help the investor make money

The financial market is just a surprising structure with great material potential, hence it attracts many investors. That being said, many wonder why some person can profit from the market, while others only lose their capital? Isn’t that not an interesting question? From a statistical perspective, only 5-10% of participants achieve a windfall result on the financial market, and in terms of long-term investments in stocks connected to assets purchased directly, that number drops to 3-5%. Why is it that while there is this great potential, as well as many hi-tech analytical systems and professional analysts at traders’ disposal, that such a small portion of investors can generate results? We decided to take today to consider this question through the prism of an investor’s psychology and character traits. To put it simply, what qualities should an investor possess in order to expect to be able to achieve success on the market?

So, investing and trading on the financial market is a fine and complex matter that requires advanced analytical skills on the part of its participants. That being said, it doesn’t make a difference how bright or educated a trader is, they won’t achieve success if their emotional and psychological state doesn’t meet certain requirements. The problem here lies in the human factor. Few can handle the stress that comes along with working on the market and, as a result, make a series of inexcusable mistakes and lose their capital. This why is we’d advice considering which character traits set successful traders apart from those who lose their funds on the market.

Patience

This is one of the main character traits that successful investors must possess. The reason for this is that it is quite psychologically trying to invest funds in a specific asset, as it is difficult to distance yourself from the already clear benefits of achieving a hypothetically positive result. In addition to this, with all investment activity, there is a defined period that you must wait before receiving profit, which requires a significant amount of patience. Besides that, the market is very dynamic and creates many stressful situations that can disturb anyone’s wellbeing, even the most psychologically resilient.

The stress and fear of losing funds in particular lead traders to make a significant number of mistakes. Many of you have found yourself in such situations, where you have generated a clear forecast and placed the trade, but the market begun to move in the opposite direction, and your position quickly fell into a losing zone! This situation, the vast majority of traders start to panic and make mistakes attempting to mitigate loss by closing out the trading position or increasing/decreasing the total contract. In such cases, the market can play a confusing game with traders. For example, there could be a rate reversal in the direction of the original forecast, resulting in the investor losing even more capital, or even more dynamic rate movement against the forecast, further compounding the investor’s losses. The patience of successful traders stands out. They remain calm in stressful situations and follow the rules outlined in their strategy without adjusting the risk or correcting their forecasted trading position. They simply wait for the result of the contract, regardless of whether that may be positive or negative!

Focus

Successful traders focus entirely on the process of trading, completely ignoring any outside distractions that may come up. Other than that, there is one important nuance. Throughout the trading process, professional traders focus on that technical, emotional or physical factors that they have complete control over, fully blocking out any process that they have no influence on. For example, investors have no influence on market processes, including the ability to swing asset rates at their desired discretion, change the politics of regulators and central banks, and increase the statistical indicators of companies’ assets that they have acquired. However, at the same time, focusing on the regulated processes on which they can influence the end results of investment activity, such as selecting and implementing specific strategies, evaluating how effective a forecast is, diversifying their investment portfolio, correcting for risk and total active capital, and choosing the best conditions for opening a trading position. These factors for influencing trading results, in combination with attentive concentration on efforts and concise calculations, will lead traders to be most effective, as well as producing the best trading results.

Methodical

Successful traders are different from beginners in how methodically they relate to the technical process of trading. In this case, it is all directed at being effective. Professionals conduct their activity methodically, systematically and strictly adhering to their strategy. Here, there is no room to doubt this or that decision, as financial risk is precisely calculated, the most lucrative investment assets are chosen, vital contract indicators are put into place, and time is managed effectively in terms of investments. Through methodical and precise calculations, these factors, in particular, empower professionals to achieve success.

Diligence

When making any decision, an effective investor always takes into account all the possible ways that events could play out. Despite the fact that the market is very difficult to predict, professional keep several options in handy to help them escape a critical situation need be. Other than that, diligent investors don’t jump into trades the second they receive a highly-accurate signal. They calmly take it in stride and begin to investigate what opportunities such an investment has to offer without rushing or allowing their emotions to dictate their decision. Diligence is one of the most professional character traits an investor can have. This enables them to more already define risks and opportunities to diversify them. As a result, professional investors to assess their activity abstractly so as to come to the most effective trading decisions.

Informed being

Information plays the most vital role in investment activity. It is only possible to identify the most effective assets for investment through information regarding this or that aspect of working on the market. As a simple example. strategies based on fundamental analysis are the most effective approaches to investment activity. Experienced traders use the evaluation of financial data and news regarding the market as a basis for their trading signals. Besides that, the importance of being informed is proven by the fact that, even when working with technical analysis strategies based on patterns and indicators, traders correct their forecasts in accordance with the current information available on the market. Other than that, information gives investors the opportunity to build the most effective investment portfolios. By using extensive amounts of data to construct their portfolios, traders can be sure to find the financial tools with the most promise. Therefore, consistently remaining informed is one of the most important qualities a trader can have, as it critically affects what results your investment activity produce.

Self-discipline

Out of all the qualities an effective trader should have, self-discipline is near the top of the list! Considering that trading is a very emotional process that is affected by a myriad of psychological, as well as technical factors, there are a lot of mistakes that traders can make that are completely separate from the direct trading process itself. The problem is that investment and trading on the financial market are at times seen as a kind of casino, making it, first and foremost, a type of gambling! This fact, in particular, is the enemy of any trader who wants to produce good results. Meaning that self-discipline is an irreplaceable quality of effective investors. Having self-discipline means strictly adhering to your trading plan, strategy, and your continued education and the expansion of your professional skills. Despite the simplicity of this concept, it is very difficult to become self-disciplined. For some this quality comes naturally, but for others, it needs to be developed, however, this is difficult to do from a psychological standpoint alone. By nurturing this quality within themselves, potentially successful investors not only acquire a beneficial character trait, but they also improve their professional standing on the market.

Cope well under stress

As we already mentioned, investment activity and trading are difficult from a psychological perspective. Here you can either lose money or generate huge profits, regardless it has an impact on the emotional and psychological well-being of investors. Misfortunes, as well as success, should temper investors and nothing else. Coping well with stress enables you to survive any difficulties that arise when you are trading, as well as make informed, unemotional decisions. Other than that, coping well with stress is closely related to other qualities such as being disciplined, diligent, methodical, and focused. This is only a short list of the qualities that stress has a significant influence on. Coping well under stress, in particular, enables investors to act under the best conditions psychologically.

Confidence

Without confidence in your trading abilities, you can’t generate results. This is true without a doubt! Here, first and foremost, it is more important to note that investors should always have confidence in their own strategy, even if it isn’t producing positive results at certain times. When you trade on the financial market, many factors have an influence on your results, meaning that any system can become less effective under certain circumstances. However, having confidence in the result protects investors from losing faith in their own work and gives them the strength to continue growing professionally. To increase your confidence trading and improve your discipline professionally, many adopt the simple approach of outlining and planning out their work on the market, noting all the positive and negative trading points. Other than that, confidence, along with analyzing your mistakes, enables you to more accurately develop a trading system, which will definitely impact the final results of your investment activity.

The ability to relax

If you combine all the qualities listed and instill them all in some way into one hypothetical investor, we’d end up with a close-minded and psychologically stunted person that is highly concentrated on a specific process. Don’t you agree that on a personal level it paints a scary picture? Therefore, in order to avoid becoming a robot who sociopathically functions on the financial market completely without emotion, effective investors should be able to relax and switch off from the trading process.

There are many ways to relax, for example, you can take a break from working with financial assets for certain periods, giving you a break from stressful situations and giving you the opportunity to effectively analyze your mistakes and well as your strengths in terms of trading. Another option is to take a break from the monitor. This is also beneficial for activating all the necessary qualities of effective traders. Another approach to relaxing that professional traders often use is to take a break for a few minutes after they get a trading signal, avoiding rushing into placing a trade. If the signal is truly accurate, the market situation won’t change, it will only become more powerful and effective. After this, you can confidently place the trade. Such techniques made quite a bit of profit for traders.

Conclusion

As a conclusion, investment activity and trading hold great potential, as well as create many psychological hurdles, so it is very important for traders to nurture specific skills and personal qualities. In order to reach financial peaks, you need to nurture the qualities of leaders and successful individuals, that is the only way to become a professional.

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15 Characteristics of Highly Successful Investors

Are you a trader or investor? Have you ever wished you were an investment whiz kid like Warren Buffett, Peter Lynch or George Soros? Would you give everything just to become successful as these men? What special characteristics do highly successful investors possess that you don’t? If someone offered to explain to you in detail the basic characteristics possessed by every successful investor, will you listen and learn whole heartedly?

If your answer to the last question above is yes? Then please read on as I share with you 15 characteristics possessed by successful investors such as Warren Buffett.

“The philosophy of the rich and the poor is this: the rich invest their money and spend what is left.

The poor spend their money and invest what is left.” — Rich Dad

“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” — John D. Rockefeller

15 Characteristics of Highly Successful Investors

1. Highly successful investors are proactive learners

“To learn new things; you might need to unlearn old thought and tricks. Both processes can never be achieved without humility.” — Ajaero Tony Martins

“The rich invest in time, the poor invest in money.” — Warren Buffett

2. They always invest with a planned exit strategy

“Go to the mouse you foolish investor and learn. A mouse never entrusts its life to only one hole.” — Ajaero Tony Martins

“Always start at the end before you begin. Professional investors always have an exit strategy before they invest. Knowing your exit strategy is an important investment fundamental.” — Rich Dad

“Many people rush into the game of investing thinking they are predators. When they get to the middle of the game, they then realize they are the prey and try to escape but it will be too late. Only the preys with a well defined exit strategy will escape, the rest will be slaughtered by the real predators.” — Ajaero Tony Martins

3. They are patient

“I never attempt to make money on the stock market. I buy on assumption they could close the market the next day and not re-open it for five years.” — Warren Buffett

4. Highly successful investors have strong emotional control

“Every few seconds it changes, up an eighth, down an eighth. It’s like playing a slot machine. I lose $20 million, I gain $20 million.” — Ted Turner

“To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game.” — Rich Dad

5. They have a well defined investing strategy

“A winning strategy must include losing.” — Rich Dad

“Diversification is a protection against ignorance. It makes very little sense to those who know what they are doing.” — Warren Buffet

“The wise man put all his eggs in one basket and watches the basket.” — Andrew Carnegie

“Buy when everyone else is selling and hold when everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investments.” — J. Paul Getty

6. They are focused

“The men who have succeeded are men who have chosen one line and stuck to it.” — Andrew Carnegie

7. Successful investors use trend to their advantage

“Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is trend.” — Ajaero Tony Martins

Another attribute of successful investors is that they know how to use trend to their advantage. Average investors panic over market fluctuations but professional investors welcome these fluctuations because it’s based on these fluctuations that they make their money.

Successful investors use trends such as market sentiments, political instability and company’s crisis to their advantage.

“Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it.” — Warren Buffett

8. They are persistent

“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” — Henry Ford

“Most people give up just when they are about to achieve success. They quit on one yard line. They give up the at last minute of the game one foot from a winning touch down.” — Henry Ross Perot

9. They thrive on risk

“Risk comes from not knowing what you are doing.” — Warren Buffett

“Seek advice on risk from the wealthy who still take risks, not friends who dare nothing more than a football bet.” — J. Paul Getty

10. Successful investors are disciplined

“My two rules of investing: Rule one — never lose money. Rule two — never forget rule one.” — Warren Buffett

11. They know how to use leverage to their advantage

“The most important word in the world of money is cash flow. The second most important word is leverage.” — Rich Dad

“Financial leverage is the advantage the rich have over the poor and middle class.” — Rich Dad

“If you owe the bank $100, that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.” — J. Paul Getty

12. They learn quickly from their mistakes

“Even a mistake may turn out to be the one thing necessary to a worthwhile achievement.” — Henry Ford

When investors talk of experience, they are simply talking about the trials faced, mistakes made, lessons learned and triumphs achieved. You can never become successful investors without making some miscalculations or mistakes.

Successful investors make mistakes but they are not discouraged by these mistakes because they know mistakes are part of the process to becoming a better investor. Average investors perceive mistakes as bad but successful investors see mistakes as an opportunity to learn something new.

“Only those who are asleep make no mistakes.” — Ingvar Kamprad

13. They have a team of professional advisors

“It is better to hang out with people better than you. Pick out associates whose behavior is better than yours and you will drift in that direction.” — Warren Buffett

If you observe successful investors closely, you will notice they have a team of professional advisors. Average investors try to beat the market alone while professional investors invest as part of a team.

Successful investors also have a network of friends made of professional investors. They share advice and brainstorm on investing challenges with their investor friends. Do you want to be a successful investor? If yes, then it’s time to start choosing your friends carefully. Remember, birds of the same feathers flock together.

“I have been within the four walls of school and I have been on the street. I can confidently tell you that the street is tougher, challenging, daring, exciting and more rewarding. In school; you play alone. But on the street, you play with the big boys.” — Ajaero Tony Martins

14. They have a strong financial background

“Business and financial intelligence are not picked up within the four walls of school. You pick them up on the streets. In school, you are taught how to manage other people’s money. On the streets, you are taught how to make money.” — Ajaero Tony Martins

Just as stated in the quote above, you only become a better investor by being on the streets. Successful investors have a solid financial foundation; a foundation molded on the streets. On the streets, you learn from your own experience. Successful investors build up their financial base by attending seminars, reading books and journals, learning from a mentor and listening to tapes; after which they go out on their own to gain street experience.

Average investors try to hone their investing skills while still striving to avoid loss. Successful investors on the other hand know that experience come with losing money and learning from the loss.

15. Successful investors are passionate about the game of investing

“Men of means look at making money as a game which they love to play.” — J. Paul Getty

Why are you an investor? Your answer to this question will determine if you will be successful in the world of investing or not. A famous author once said this: “if you are going to play a game, choose a game you can play throughout your life time and investing is one of such game”.

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If you take a look at average investors, they are always after how much they are going to make now but successful investors use delayed gratification and compounding to gain an edge.

“Wealth is only a benefit of the game of money. If you win, the money will be there.” — J. Paul Getty

In conclusion, these are the 15 characteristics possessed by every successful investor. If it’s your desire to join this league of investors, all you need to do is gradually develop these characters. As a final note, I want to state categorically that becoming a successful investor is within your reach. Just model the masters of the game and you will see yourself improving.

Author Biography

Ajaero Tony Martins is a serial entrepreneur, investor and a prolific blogger. He blogs about his entrepreneurial experience and provides hard core business development strategies on StrategicBusinessTeam.com, You can also follow him on twitter @StrategicTeam

Copyrighted 2020. Content published with author’s permission.

6 Personality Traits of the Best Investors

Successful stock market investors have several traits in common. The more your own style mimics the greats, the more likely you are to produce profits. These successful traits include patience, focus, and doing your due diligence in researching your investments.

Patience

Above and beyond all the other traits, the degree of patience you possess with impact your final results. Perhaps this is because patience is actually the exact opposite of the profit-killing emotions which plague most investors, such as impatience, greed, and fear.

In fact, a steady hand will often eliminate all the stock market mistakes which come along with frustration or anger or regret. In the world of investing, patience means profits.

Ability to Tune out Noise

This personality trait will serve you well, whether we are talking about the stock market, mainstream media, or even noisy kids. With constant distractions, and the constant interruptions of advertisements each day, how can anyone survive unless they are able to ignore the commotion?

Even if we focus solely on the stock market, the deluge of data points and numbers is still far beyond overwhelming. The better you can get through all the mixed messages and contrarian opinions, the greater your final trading account balance. Don’t get discouraged, you will find that you get pretty good at this stuff, and pretty quickly too!

Staying the Course

Have you ever sold a stock, only to watch the shares climb higher? Similar to its close cousin “patience,” staying the course should typically help you remain ahead of the pack.

Said another way, trading more often does not usually result in greater or better trading profits. Quite the opposite, actually—the frequency of trading is typically inverse to profits.

Calm in the Storm

When the sky is falling, and crowds are trampling one another to dump their shares, the investors who remain calm win. In fact, the relaxed and thoughtful people among us will be able to recognize all the undervalued opportunities that others miss during the frenzy.

Doing the Homework

Rather than bet on opinions based on limited knowledge, successful investors continually learn. Most people make decisions based on sound bites or partial arguments. ​​

In contrast, the greatest stock market traders conduct their own due diligence—and learn—until they know which investment moves will pay off. When they aren’t sure about a trading move, they learn more—until they know plenty, and have a pretty solid understanding of their potential choices.

Asking for Knowledge

Great stock market investors are wise enough to know what they don’t know. They lean heavily on the opinions and knowledge of experts and specialists.

They are also not too proud to ask questions, and they tend to spend the time, in the beginning, to get all the facts, rather than doing their learning once it is too late. In other words, they make sure that they are well-informed and well-prepared.

The beauty of all of these personality traits of the great investors is that they can easily be replicated by you, right now. You won’t need to be Superman or some trading troll in a dark basement with 7 monitors—just put in the work required to make wise choices, and stay calm even during the greatest market panics.

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