What are the features that a good investor should have? What are the characteristics of people who have enough capital and earn money from money?
What are the factors that make these people successful in their investments?
For me, the good features of one investor should have is that he/she should value every failures they've made. I believe all investors living in success once failed at some point of their lives, and from that point, they will recognize their weakness that they should value the most. And also they have a lot of patience, and believe that they will soon be successful.
Yes, you really have a point. All successful investors were once a failure. And that failure serves as their motivation to learned new ideas or strategies as to what to do next for them to succeed in their next investment.
Anyway, I have searched some of the characteristics of good investors and these are the following:
Goal setting: Failing to plan is planning to fail!A good investor will always have clear goal. It is very important to have a plan to achieve the goals. Variations most likely tend to divert an investor from the agenda. Having a plan of action within a defined period of time for a particular return on investment is a sign of a good investor.
Knowledge: When you know better, you do better!A good investor possesses knowledge of the market. He/she understands the position of funds and has researched about the company investment strategy and philosophy. You need to know where your money is being utilized. A good investor analyses the growth pattern of the company over the years from genuine sources.
Right Decision: Listen to the world but do what is right!A good investor knows the time. They keep an eye on current scenario in the market. They update their knowledge about market activities and growth. Having a sound understanding of trends enables the investors to overlook their plans and decide the term of investment. They own their mistakes and learn not to make them again. It’s not necessary that the good investor jumps into the trends; he/she just does what is right.
Patience: Keep calm and carry on!A good investor creates wealth due to his patience. It is probably the finest quality to have. A good investor has faith in his plans. They usually do not feel bad about the 10% down-tick; they would rather sit tight to celebrate the 100% uptick. They are persistent about sticking to the plans. They usually do not get into the buy and sell trends.
Risk Aversion: Know thyself!Good investors know the inherent risk in investing. They understand their plans and analyze their expected returns. Being risk averse is a quality shaped by experience, knowledge and confidence over the above mentioned key characteristics.
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