“Don’t bother just to be better than your contemporaries or predecessors. Try to be better than yourself.”
What does a successful investor look like to you?
What personality traits do they possess? How do they handle the market?
Many people have a good idea of what makes a successful trader. And in some ways, they may be right. They see someone who:
- Is an expert in the market.
- Who knows what influences stock prices and how to predict certain changes through reports, articles and announcements.
- Even though they are not right 100% of the time, they seem to know how to make the right choices.
Many people see the result of a long career of trial and error. This is the part they often miss. They see the end result, and even expand upon it but do not realize what it took to get there.
How did the successful investor handle the market when they were a fledgling trader? No one is born with understanding and experience in the stock market. This is obtained over time.
When Will I Be a Master?
At what point do you graduate from skilled to master in the stock market? The time required varies from one individual to another.
Some people learn faster than others while some are more active and get more practice over a shorter period of time.
That practice and experience takes time to develop. By measurements of time, we are talking years rather than days or months.
In fact, expert Mike Quanbeck stated that investors who have been in trading for five years or less are still at a novice level.
For some newcomers, five years sounds like a lot of time. However, if you want the success and profit of being a master, you must be ready to wait it out.
Everything Changes, from People to the Market
It is very difficult to set a solid timeline for a trader to graduate through the ranks of the stock market.
Personal influences play a role, but so do larger ones. The market changes just as people do.
As technology evolves, some stock may become less valuable and others more valuable. Some investors who were previously successful suddenly find it difficult because their chosen investments are no longer as desirable as they once were.
Circumstances can also play a big role in an investor/trader’s success. This can be good and bad.
- Good because circumstance can help dramatically increase profits when they otherwise would not have.
- Bad because circumstances can change and have the same effect in the opposite direction.
Your situation is unique and you might make it big sooner than you think. Just make sure you are prepared to work towards your long-term goals no matter what may come.
So, what’s a Realistic Portrait of a Successful Investor?
To sum up briefly, the successful investor is someone with a healthy expectation of what type of returns they can generate in the market, a solid trading plan, the ability to stick to that plan when things don’t turn out the way they originally anticipate.
Someone who has a clear understanding of the goals they want to achieve, the risks they are willing to take, what they can psychologically handle, and is able to see through the fog and remain unaffected by messages in the media or seductive language used by so-called ‘gurus’ floating around in this space.
That’s not to say that this persona is something you must already be either.
As long as you are consciously working towards building yourself up to be the investor that encompasses all these traits, you are already a successful investor.
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