Successful investing requires knowledge, time and commitment, discipline and patience, and the ability to develop an investment strategy that is compatible with your personality.
The importance of knowledge
When planning an investment strategy, each individual must consider what he knows. It is important for you to acquire the additional wisdom you need as well as recognize your current level of knowledge.
Why are time and commitment important?
Do you know how much time you would want to spend monitoring your portfolio. This question is actually critical. The investment plan of an individual should be based on how interested he is in ensuring personal financial success. Your strategy will be more complex if the portfolio is more diversified and this means you will need more time. A strategy that carefully matches his own personality and level of commitment is what an investor must map out in order to be successful.
Why you should have discipline
Eluding far too many people is the ability to maintain discipline although many investors start with an approach that will work for them. A variety of psychological issues caused this that is led by greed and fear and tend to dominate predetermined financial strategies. Different investment styles will work better than others during various stages of a stock market. There are times when a value approach is in favor. To accommodate the market, there are times when there is a growth or momentum style.
Patience
Patience is the last trait for successful investing. If you are not patient, then your returns will be limited. Reminding us that it takes nine months for a woman to deliver a baby is Warren Buffet. Most people may not realize this, but investments actually take more time to work out. When you have planned an investment strategy that will complement your personality, then it should be simple to manage a portfolio. Your challenge would be to try and remain disciplined and follow the game.
An investor who establishes varying time frames for holding different types of securities will be much less inclined to lose patience in well researched ideas. Also assisting the investor from "holding too long" while creating large losses as well as watching his momentum fall out of favor is this type of analysis.
The importance of knowledge
When planning an investment strategy, each individual must consider what he knows. It is important for you to acquire the additional wisdom you need as well as recognize your current level of knowledge.
Why are time and commitment important?
Do you know how much time you would want to spend monitoring your portfolio. This question is actually critical. The investment plan of an individual should be based on how interested he is in ensuring personal financial success. Your strategy will be more complex if the portfolio is more diversified and this means you will need more time. A strategy that carefully matches his own personality and level of commitment is what an investor must map out in order to be successful.
Why you should have discipline
Eluding far too many people is the ability to maintain discipline although many investors start with an approach that will work for them. A variety of psychological issues caused this that is led by greed and fear and tend to dominate predetermined financial strategies. Different investment styles will work better than others during various stages of a stock market. There are times when a value approach is in favor. To accommodate the market, there are times when there is a growth or momentum style.
Patience
Patience is the last trait for successful investing. If you are not patient, then your returns will be limited. Reminding us that it takes nine months for a woman to deliver a baby is Warren Buffet. Most people may not realize this, but investments actually take more time to work out. When you have planned an investment strategy that will complement your personality, then it should be simple to manage a portfolio. Your challenge would be to try and remain disciplined and follow the game.
An investor who establishes varying time frames for holding different types of securities will be much less inclined to lose patience in well researched ideas. Also assisting the investor from "holding too long" while creating large losses as well as watching his momentum fall out of favor is this type of analysis.
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