In the last part, we presented “7 investor’s sins, ” a list of seven flaws that every investor should beware of. Therefore, it is time to present the “7 investor’s virtues,” which are the desired qualities. Do you find them within yourself?
1. Humility
Humility is the mother of giants – Gilbert Keith Chesterton
Remember that without the awareness of our faults and continuous work on their correction, neither are we ready for a career of an investor and any other. The important thing is to notice our deficiencies and start working on them. Let’s also be humble in the face of the changes that take place every day in the world and have their reflection on the markets. This is not about snapping our necks, but rather about the willingness to keep on developing.
2. Vigilance
Get ready for a meeting with an unwillingness – Piotr Szreniawski.
It would be desirable that not only scouts know the motto “Keep your eyes open!”. A good investor should continuously analyze the investment market situation, both during morning coffee and evening tea. Let’s remember that by developing a market tracking routine, one will always be well informed and prepared for various eventualities.
3. Moderation
If moderation is a fault, then indifference is a crime – Georg Christoph Lichtenberg
Perceiving investment as a “shot” that will bring us colossal profits is a mistake of many beginner investors. Everything is due to a lack of moderation. A good investor should manage risk and know what tools and strategies to use to minimize the risk of losses. This is one of the fundamental issues without which the risk of failure is enormous.
4. Patience
Patience is the companion of wisdom – saint Augustine
We often hear about the “guaranteed” that can give us a quick profit; unfortunately, they only bring losses in most cases. Patience teaches us to control ourselves and not to give in to external stimuli. Therefore, we should know how to conduct a proper rational market analysis and then compare our expectations. Remember that investing is a long-term activity that can bring profit spread over time. Do we want to make big money? Let’s work on patience first.
5. Diligence
Sloth makes all things difficult, but industry all things easy – Benjamin Franklin
Humility makes us aware of the importance of diligence. It’s not only a matter of getting up to work every day, but also of continually improving our knowledge. Significant investment is based on strategies, methods, and tools recognized, analyzed, and used by a good investor. Let’s remember there is never too much knowledge.
6. Be yourself
Draw from others but don’t copy, stay yourself– Michel Quoist
Investors often suffer from the disease of “pack mentality.” They start to believe in the principle that since one solution has brought success, it means that it’s useful and can be replicated. It’s a mistake that can lead to a speculation bubble responsible for chaos and collapse. Follow the trends and market moods, but make each decision on your own.
7. Courage
Courage is knowing what not to fear – Platon
Each change begins with the first step, but it takes courage to make it happen. Dare to decide to leave the comfort zone and change your life, then stick to it as much as you can. Some investment decisions require courage, but it often leads to an apparent breakthrough above the hoi polloi.
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