As you begin your investment career and try different things, you are going to experience some disappointments and some set backs. This is a given so expect it to happen at some point. Try to understand that this is normal and keep working hard to improve your knowledge and your skills. Never give up on your dream to make passive residual income with investing.
Key Trait 2 Being Patient
This is a lot easier said than done. A famous and true saying I once heard is “there is always a deal of a lifetime waiting around the corner.” Never feel rushed into making a decision because you feel that you will “miss out” if you don’t act quickly. Acting quickly without thinking is a lot like playing Russian Roulette. You might get lucky, but it will eventually catch up to you.
Key Trait 3 Have a written plan for success
An unwritten plan is hard to follow. Set some short, mid, and long-term goals. By setting goals you can track your progress and see how you are doing against your goals. By writing down your goals you will also be able to visualize it and see whether or not your goals are realistic.
A long-term goal could be…..”make $5,000 passive residual income per month with internet marketing”
A mid-term goal could be…”make my first sale in internet marketing”
A short-time goal could be…”build my first website and sign up for Google AdWords”
Key Trait 4 Research before you make a decision
Never invest your hard-earned cash without doing the proper research. Following this simple step will greatly improves your chances of success and minimize your odds of failure. Knowledge is power and is abundant, all it requires is some effort on your part to get it. Take the extra time to understand whatever investment strategy you might be interested in. Learn to identify exit and entry points and how and when to cut your losses. Also, learn about the typical returns for that particular strategy to see if it lines up with your goals.
Key Trait 5 Learn from your mistakes
This is how you will mature from an investor and this is why it helps to have a written plan to document your activity. Look for trends and establish guidelines for yourself to avoid in the future. Some guidelines i have for myself in stock market investing are
– Avoid Healthcare stocks (these stocks can lose their ENTIRE value in one day if one of their key drugs does not perform well. Don’t believe me? I lost $14,842 in one hour because of this. A VALUABLE lesson)
– Avoid stocks that are above $50 per share (my options are limited with stocks above $50)
– Cut losses at 10% (If I have lost 10% of my money on a stock then i will sell my stocks)
Key Trait 6 See the big picture
In the game of successful investing, understand that it is a long journey and not a sprint to the finish line.
If you learn to see the big picture in everything you will learn to appreciate the little setbacks and disappointments for what they are….hurdles for you to step over in your lifelong journey to success. Also, without some mistakes and disappointments you will never grow as an investor, and as a person.