What up ballers! Here is the top 5 character qualities every investor needs to emulate to be successful.
- Discipline: Making money in the stock market takes financial discipline. This means setting aside a set amount from every paycheck, birthday money, lottery win, money you find on the ground and put it into your trading account. You should never rush into an investment, but it’s good to be consistently saving money so when you find a worthy investment you can pull the trigger. A lifestyle choice that helps is not spending money of sh*t you do not need. For instance, if you make $1000 bucks a month do not live somewhere that costs you $800 bucks a month in rent and eat out two meals a day. Wait till you make your first $10gs then buy some preme, gucci, sushi, designer dress etc.
- Objectivity: Emotion is an investors worst enemy. Countless times I have seen people get emotionally attached to a particular stock and let it cloud their judgement. I have fell victim to this myself. It’s vital that you can filter out feelings and base investment decisions purely on objective analysis of company fundamentals and market conditions.
- Decisiveness: Things happen fast in the stock market. The share price of a company today could be very different from the share price tomorrow or even hours from now, especially in the biotech sector. For this reason it’s important to be confident in your analysis of an investment and promptly take action. To do this its you must always have free cash ready to go. In addition to decisively buying a stock, you must be prepared to decisively sell a stock. If your in this game long enough you’ll eventually be wrong. Once you realize you were wrong take action and get out. DO NOT let emotion and attachment to the company affect your judgement.
- Confidence: Being a successful investor requires self-confidence. People on stock boards, research analyst, the media, friends & family, etc. may disagree with you about the outlook of a company. Do not base an investment decision on other people’s opinions. Let me say that again. DO NOT investment based on other people’s opinions. This is a sure fire way to lose money. Take what they say into consideration and if it’s a compelling argument than factor it into your decision. Investing= risk vs. reward. It’s all about finding what level of risk you are willing to accept for a potential reward based on the probability of the risk or reward materializing. When you find an investment that fits your desired risk:reward profile act decisively and don’t be swayed to sell unless something fundamental changes.
- Patience: Unfortunately, stock prices to do not always move in the direction we want them to when we want them to. In fact, many times you’ll see your stock go down after investing. Do not panic. This does not mean you were wrong. It’s impossible to time the market. As long as nothing material or fundamental changed in the company and your investment thesis still holds up then kick back and wait. Or, what I like to do is buy more. After all if I liked an investment at $10 a share than I LOVE it at $8. The point is: Investing in the stock market requires patience and risk tolerance. It’s easy to get spooked when you have $500, $1000, or $10,000 invested but never sell out of fear. On the flip side, never buy out out of fear of missing out (FOMO).