There are many people out there who see themselves as investors and believe they have the right skill set to go far. This will be true for some but certainly not all, being a successful investor requires a strong instinct, in depth market knowledge and a ruthlessness that comes with a gambling mentality.
Stockbroking is glorified gambling and thus you have got to be willing to take a loss in order to make a profit in the future. Markets nowadays are extremely fragile and it is becoming progressively tough to find those dream investments.
You have got to trust your instinct, if you see something in a company that you believe is unique then you have got to be willing to go for it.
If you are tentative and the price changes then your whole perception will change. Being attuned to market fluctuations and trends is essential and it is a skill that comes naturally to all good investors.
It isn’t easy to be successful but it is very easy to lose a lot of money. Spend your time researching and only invest if your figures back up your instinctive though, striking the balance is paramount but if you can do this then the chance of mastery is high.
The importance of strong research cannot be understated in my opinion. If you have some hard evidence showcasing the projected profit or rise in price of a company, surely that is a good thing? I understand research still involves a little guess work but you then have got to trust your instinct and go for it.
An informed decision, in the majority, not always, is better than one based solely on guess work. I really do appreciate the fact that investing is about instinct and those out there looking for investors will always be hoping that one of these chancers comes across their idea or potential company.
It really is down to the person, there will be people out there who make a lot of money as a result of research led investment and there will be others who go it alone based on their instincts. That in my view is the beauty of the industry.
You have got to have an understanding of the markets, I don’t care if you don’t research individual companies in detail but you really have to know about what causes price change and fluctuation.
It is just a simple fact of life, if you want to be an investor you need to know what makes the markets move, it will just make every single aspect of your job that little but easier.
Be ruthless, the money you make is yours and therefore you have got to know when the right time is to cut ties. Too many investors out there have weird loyalties with companies, it is not an industry for that at all.
You have got to get in and get out, or be willing to stick it out if that is what you think is best, it changes for each company and you must be aware of that.
About The Author
Seb has a wide variety of industry experience and has been writing for over 20 years now. As a freelancer he loves the flexibility that comes with it and was one of the main reasons he chose this career.