Must Have Skills To Become A Successful Investor
What makes a difference between a pro and an amateur is the skills. What makes even more difference between a successful investor and a failing one is the application of those skills. Investment isn’t about spray and pray. It’s about applying the right skills and strategies for positive results. Think about the days when you just entered the investment world with little knowledge and skills. Think about how you have made huge mistakes that got your pockets drained. If not anything, seasoned investors will tell you the importance of getting the right skills if you have to amasse what the market has to offer.
When we talk about investment skills, it’s definitely not a one time thing. You can’t outsmart the market and there will be times it will play you if you aren’t getting your investment game right. Hence, skills should be acquired and learning should take place daily. If you don’t know how to go about this and craftily apply the right skills for desired results, that is why we have spoken to the successful people who know how the rules work, Anosh Ahmed. Dr. Anosh Ahmed Chicago is not only a renowned doctor but also one who has a track record of success in investing careers. Read on for must have skills that will make you invest like a pro and build wealth.
First, invest in financial education
The importance of financial literacy in successful investment cannot be overemphasised. Talk to any investment wizards and they will tell you how financial literacy helps them understand where to channel resources for great returns. They control money. Money works for them, not them chasing after money. Lack of financial education can lead to various problems such as debt accumulation, inability to manage finances. Poor investment decisions, bankruptcy and much more. “The real estate world is full of horror stories who end up in financial woes because of lack of financial education. But when you are financially literate, it won’t only help you in making informed investment decisions, but also on efficient savings, better debt management and retirement planning. These are what makes up a good financial well-being”, Anosh Ahmed, MD says.
Assess the IQ, intelligent (investment) quotient
Take it or leave it, the level of intelligence also plays a key role in investment. Evidence has shown that Participation in the stock market is driven by intelligence level and higher IQ investors tend to have a better trade execution suitable for any market environment. IQ analyses the ability to acquire and apply knowledge and skills and investment is sometimes full of mathematical jargons and data. Is it the market trend to analyse, pile of data to look into, complex ideas or the technical analysis to carry out? These will require strong cognitive skills, problem-solving skills, technical skills and much more.
Invest regionally, be emotionally intelligent
IQ plus EQ is what makes up FQ(financial intelligence). This is to say a smart investor might still not be successful if the person can control his emotions. ” Many say one has to be cold blooded, undeterred, and knock out emotions when it comes to investment. But this is practically no! Taking your emotions might be impossible, however taking control of it especially when under pressure is vital” Anosh Ahmed explains. What is required is to bring both IQ and EQ to the game, developing them in order to make an informed, unbiased decision for a financially empowered life.
Making learning part of your life
If Warren Buffett is still learning, then you shouldn’t be sleeping on acquiring more knowledge. Don’t ever see yourself as a maven but rather as a student. Learning is a lifelong, never-ending process. There will always be the market to study, new trends to keep abreast of, more tools and techniques to analyse. Investment landscape is ever-evolving and the best thing you can do for your investment is to evolve with it.
Become a researcher
Savvy investors are researchers and this means if you want to be ahead of the curve, you have to keep abreast of the news. Not only will investors assess various financial instruments or companies’ performance, they also need to know about technological advancements, new rules and government policies and so much more. You need to be aware of any micro or macro economic changes going on across the globe. This is an endless process that allows you to sustain an edge over others and this generates good returns. Knowledge is power and it’s required in decision making. The quality of information gained determines the quality of decision made.
Have investment strategies
One can reach the top of the investment ladder without strategies. Investment strategies are what serve as guiding principles navigating you through the landscape by considering the skills, investment goals, risk tolerance and profit objective. There are different strategies out there but not all of them are suitable for your needs. Therefore, analyse the various strategies and go for the right ones for you. However, understand that strategies shouldn’t be static but rather should be reviewed as personal personal needs changes.
Just take the leap
Seasoned investors understand the value of time and what it can cost them if the delay. To be successful in investment, you need to make informed decisions and as fast as possible if you don’t want to miss out on opportunities. Think fast, Act fast is the key.
November 28, 2022