Characteristics of Highly Successful Investors
Successful investors know that their cup of knowledge must never be full so they always keep their minds open; ever ready to learn.
- Highly successful investors are proactive learners
The first characteristic of highly successful investors is that they are proactive learners. They spend more time studying than the average investors. They are also voracious readers.
- They always invest with a planned exit strategy
Successful investors know that there are always two sides to an investment. They know that the future is unpredictable so they prepare in advance for it. Average investors try to predict the future of their investments; they count their chickens before they are hatched. Successful investors do the opposite; they prepare for the best while still preparing for the worst.
- They are patient
Successful investors are very patient. When they make their calculations on an investment, they are prepared to wait to make sure their plan materialize. They plan to take advantage of a short term bulls market but as a back up plan, they still plan to hold on for as long as.
- Highly successful investors have strong emotional control
Every true investor knows that the market is driven by sentiment. Market surges and declines are mainly caused by two emotional factors; fear and greed. Average investors invest based on these emotions but successful investors have a stronger control over these emotions. They don’t allow the talks of investment pundits or financial advisors affect their choice or method of investing.
- They have a well defined investing strategy
Every successful investor has over time developed a well defined investing strategy that works and they stick to this strategy. While some successful investors implement the portfolio diversification strategy, others like Warren Buffett follow the portfolio focus strategy.
- They are focused
Successful investors are focused on their investment vehicle. They take it one step at a time; one investment at a time.
- Successful investors are disciplined
Successful investors are strict with themselves when it comes to investing. Aside their investing rules and principles, they are still guided by a strong self imposed standard.
- They learn quickly from their mistakes
When investors talk of experience, they are simply talking about the trials faced, mistakes made, lessons learned and triumphs achieved. You can never become successful investors without making some miscalculations or mistakes.
“In conclusion, these characteristics possessed by every successful investor. If it’s your desire to join this league of investors, all you need to do is gradually develop these characters. As a final note, I want to state categorically that becoming a successful investor is within your reach. Just model the masters of the game and you will see yourself improving” said Salomón Juan Marcos Villarreal, president of Grupo Denim.