The main success in the process of wealth creation depends on specific qualities displayed by investor including approach to circumstances and his ability to act in response to the situation. There are few important qualities you should have if you want to become a successful investor.
Discipline : This is the first and most important quality because implementation of the planned things in religious manner requires discipline. This is the ability to withstand the temptations and survive critical moments. Willpower is a necessary addition which will let you obey the discipline and move forward regardless of all obstacles. In the process of wealth creation there is necessity to execute things in much disciplined way over a long period of time, where the investor has to overcome emotions of greed and fear.
Patience: it is very important to understand the quality of the investment and the time period it needs to deliver results. Every investment requires different time periods to deliver returns and this has to be understood before making investment. So an investor should have patience to wait for that specific time to get desired results.
Realistic Expectations: Whenever you take a decision of investment you are taking it on the basis of some assumptions. These assumptions should be realistic. This stays true for the investment as well as your income expectation including setting financial goals.
Analytical skills: The market is flooded with financial information. Investor should have the ability to analyse the information and derive the benefits. These skills are required to find out first what is required from the investment and then finding out which investment suits your requirement.
Systematic Investing: We know the advantages of systematic investing and the power of compounding, which is also described as “Eighth Wonder of the World” by Albert Einstein. Starting early, investing regularly and averaging the cost of purchase are the best ways of wealth creation. Systematic way will help you in building your dream brick by brick thereby resulting in huge compounded accumulations over time.
Planning Mind: One must have his goals clearly in his mind and then there should be a plan to make them achievable, because without a plan of action, targets cannot be achieved. Planning is the first step to making your dream come true. This helps in handling the actual portfolio much better as proper planning eliminates any doubts about the money staying invested.
Independent Decision Making: The decisions which you are following should not be governed by herd mentality. You should have an independent thinking process while taking decisions. A number of successful investors have commented on the importance of independent and individual decision-making. At the same time you should have the courage to take responsibility for your decisions.
Ready to Ask Questions: You should be willing and able to ask questions. If you think you know all the answers you probably don’t even know the questions. When any doubt comes in your mind about the investment decision you are taking ,you have to ask questions to yourself and have to find out the answer.
Creativity: Creativity is necessary to look at investments from different angles, considering all the variables that could negatively or positively affect an investment. Also, creative mind will help in analyzing the future and try to forecast the outcome of current investment plans.
Flexibility: It is important for investors to be flexible and not permanently stay invested in a particular type of asset. This is important because the financial market is dynamic. Flexibility is also an important quality that keeps one away from holding on to an asset out of loyalty – flexibility allows one to change as times change and as new opportunities present themselves.
Ready to pay for the advice: IF all that you have read above is not possible by yourself then you should have the quality to accept your limitations and be ready to take the advice from an expert. Go for a professional who is having knowledge in the financial planning and having a capacity to guide you in unbiased way, preferably a CFPCM. Of course, if you are looking for the unbiased way of advice then you should be ready to pay the fees.
“Tell your readers to use it or lose it. If you don’t use your muscles, they get weak. If you don’t use your mind, it begins to fail.”
~ Sir John Templeton