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QUALITIES OF A SUCCESSFUL INVESTOR

QUALITIES OF A SUCCESSFUL INVESTOR

Making investments in the contemporary world is as important as breathing. The inflation rate is rising at an increasing rate and to cope with that, it is really important to start investing at an early stage of life. The other valid reason to invest is the increasing life expectancy rate, and thus the expenses on health, etc, have also increased. Though our investable income has increased, the investment avenues have also increased at a duplicate rate. So, for the above-discussed reasons, it is important to invest in a source that would give us guaranteed returns in the future. 

Qualities of a Successful Investor
Image Source: LEHNER INVESTMENTS

For a profitable investment, both the source of investment and the investor should have adequate qualities in them. The investment, on one hand, should be liquidated, which would provide the investor with the benefit of reliability and it should provide stability of income. The investment should provide the safety of the principal amount, this would develop a feeling of trust among the investors. The investment should also be capable to provide tax benefits and most importantly, protection against inflation. 

Every coin has two sides, if the investment should have some good features, then the investors should also have some good qualities. The investors must be conscious enough to choose the best source of investment for them. Some of the qualities of a successful investor have been discussed below: 

Strong emotional control: The two most dangerous emotions of human nature are Greed and Fear. While investing, one should have trust and faith in what they have invested in and should not fear the losses they may face. Secondly, one must not get greedy upon seeing the increasing figures, one must sell them when they gave gained sufficient profit.

Patience: “Patience is the key to success”, and especially while investing, we must be patient and not get panicked on seeing the decreasing figures. If the graphs go down, they come up also!

Being patient can give us favourable outcomes. 

Portfolio management: We must have heard our ancestors say that one must not spend all our money on one source of investment. This same concept is followed here, one must plan their investments and decide how much they would invest in shares, securities, bonds, debentures, stocks, etc. This portfolio must be updated from time to time, as the market conditions also keep on changing.

Take professional advice: Taking professional advice would help us to make the right decisions and then we will be able to invest in the sources which are beneficial for us. Professionals help us to invest in investments that would be relevant to our needs and requirements. 

Proactive learner: Being an interested learner and one who is able to grab information from the market easily, one has a probability of becoming a successful investor. So, being a Proactive learner is crucial while investing.

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