Everyone wants to be a successful investor, but most people are worried that they don’t have what it takes to become one. Yes, there is no doubt that skills, knowledge and strategies are of the utmost importance in helping you achieve your goals, but you should also remember that they are not all that play a strong role. There are certain characteristics that you also need to have in order to become a successful investor. What are they? James Harton has outlined some of the top ones that you have to have. Check them out here:
- They are patient
Time and time again, you have heard ‘patience is a virtue’ during your life. When it comes to growing your wealth via investing, this definitely applies. Most people meet their long-term financial goals by investing over decades. James Harton says that you require plenty of patience to invest because you have to continue investing money regularly and wait for years to see some prominent gains. However, those who do manage it are rewarded with high profits. Moreover, James Harton recommends that if you don’t have a lot of patience, you can automate your investments so you don’t have to think about them and worry over their performance.
- They are learners
You need to make informed decisions in order to become a successful investor. As per James Harton, this means that you have to study market trends, conduct due diligence on assets you want to invest in, read investing journals and buy and sell individual stocks. Sure, you could let financial professionals make investment decisions for you, but you still need to have a solid understanding of where your money is invested. Monitoring the performance of your portfolio regularly is also essential to ensure you are moving towards your financial goals.
- They seek help when they need it
There is no doubt that it is important for you to put in time and learn on your own, but James Harton says that savvy investors should also know when it is time for them to learn from others. If you believe you have made mistakes, or don’t have the specific traits or skills of successful investors, then you need to find a financial coach. You can also attend a conference or take a course to find the information you need for moving forward.
- They understand the risks
If you want to be a successful investor and meet your long-term goals, then you have to expose yourself to some investments that are high-risk due to inflation. However, James Harton says that you also need to understand yourself, along with your level of risk tolerance. Sure, higher risk can lead to higher returns, but some investments tend to be a lot riskier than others. If you are risk-averse, you may not want to make higher-risk investments, but you have to understand that you are minimizing opportunities that can help you in earning substantial returns. Successful investors are fully aware of the risk-return relationship and can build diversified portfolios that align with your long-term goals.
- They are confident
When you have a good understanding of the market and are committed to learning more and even seeking help when required, it is a given that your confidence will grow. But, according to James Harton, successful investors shouldn’t just be confident; they also need to have some humility. They should expect the market to be volatile and also understand that volatility doesn’t mean losses. Confident investors are aware when they have to stick to their plans and when they should take action.
- They focus on their goals
Your investing strategy should be aligned with your long-term goals and you have to be disciplined enough to stay focused on these goals. James Harton says that if you want to be a successful investor, you need to know that you cannot control the market or inflation. But, you have to continue investing and diversify your portfolio to mitigate losses.