9 TOP Skills/Traits of a smart investor
9 TOP Skills/Traits of a smart investor
I have worked with more than 100+ Investors’ and after carefully observing them, here’s what I have found out as the “9 TOP Skills/Traits of a Smart investor”
1.They are long term investors:
Patience with delayed gratification is one of the virtues of smart investors.
A study gave children two marshmallows. Those who resisted went on to become successful than others.
Watch: The Marshmallow Experiment – Instant Gratification
2. Distinguish Myth from Truth
Pro investors don’t believe everything they hear in the News. They understand between –
a) When the hunter comes, spreads the net, and the retail investor falls into the trap and
b) When they need to make a quick move to catch the swing.
True professionals understand and can distinguish between Myth and Truth. They base their decisions on advice from mentors who they know have walked their talk. They base their decisions on economic fundamentals.
When there is hardly any economic activity and the markets move upside, the probability of something fishy is more.
3. They skillup fast and become financially literate
Smart Investors are financially literate and spend time understanding jargon and investing rules. Financial literacy is educating yourself on the relationship between income (what comes in), expenses (what goes out), assets (what you own), and liabilities (what you owe). Pro investors work on their business, not in their business. Pro investors also own assets that work for them, as opposed to working for money.
4. Leverage Time
Smart investors work smart, not hard. They leverage time by investing early and for the long-term. They leverage other people by hiring them for their time and expertise if they are not experts and let fund managers/Advisors take the calls.
5. They Practice discipline
They stay away from shiny object syndrome. To succeed in building long-term wealth, smart investors practice daily self-discipline.
They consistently periodically review their portfolio to match their goals with their investments.
They never lose their way. Focus is the key. They prepare their day the night before.
6. They master their Emotions
Smart investors have high E.Q. than their I.Q. Their ability to be calm despite being under stress, their ability to think creatively under pressure, and they recover quickly if they had made a mistake.
They don’t keep hanging with investments that are in RED and take rational decisions to get rid of them and make smarter decisions.
7. Fast Decision Taker
With time they build up their algorithms in their head and trust their intuition, then decide promptly, and if need be, course-correct alongside.
They don’t have the analysis paralysis syndrome. If there is a misfire, they quickly take aim again and shoot.
8. Persistence is the key for smart investors
Smart investors plan their investments/trades before-hand and not on the ground. They create their investment style and keep improving their style and skills. Huge swings don’t worry them, they love the volatility as it gives more opportunities.
9 They Entrust Professionals
Smart investors know the game. They would not invest in businesses they don’t know, or would outsource their investments to another fund manager who knows better.
Well, my question to you (Investor) is:
“Are you conducting your personal finance like a professional investor in these tough times?”
“How many of these skills do you currently have?”
“Which skills will you master?”
“Most of the investors can skill up and learn more now. Are you going to be the one.”
Well, even if you don’t engage in this post, the answer should reflect in your portfolio one to two years from now.
Make that decision; take one small step in that direction. Remember, we all crawl before we walk. I would love to hear from you, what will you do to upskill from here…., maybe one or two years from now…
By-the-way if you want to Upskill yourself in personal Finance and Wealth Creation, check out my DIY course by clicking here :