I consider “Investing After Hours” to be a blog for beginner investors and a guide for investment enthusiasts. This is because I’m not a professional investor or a licensed broker. I’m just a person who’s learned the secrets of investing online. I don’t want to be considered a specialist, but simply want to share what I know, presenting it in an accessible way. Why am I mentioning this? Because I would like to take up the topic of investing for beginners, which I’ve already covered to some extent.
Work on yourself, or how to understand the advice for beginner investors
When thinking about how to achieve success, you first need to realise what success means to you. This word is usually associated with a sack of gold, an apartment in Mariot, a Maserati in your garage and a few models at your side. But is it really what your success looks like? In my case, it isn’t. Yes, I have a flat, but it’s not a Mariot apartment. Yes, I have a car, but it’s not a Maserati. Yes, I have money, but I’m not one of the richest. Yes, I have a woman, but only one who is more important to me than all the others. Sticking to that and further developing it as much as possible is my greatest success. Realising what success means to me is the first stage of development. But, in order to achieve this, you need to do some work on yourself.
For instance, imagine yourself lying on the couch and not knowing what to do with yourself. You can go for a walk, to your girlfriend, to a store, to the gym – but you still have no idea where to go. Suddenly, you make a choice. I’m going to visit my girlfriend. What do you do then? You get out of bed, get dressed, check the directions, put on your shoes and go. When you get to your girlfriend, you’ll have achieved your goal. This simple example can be translated into your entire life. A lot of people don’t have a goal, so they don’t take any action. To be able to change this, you need to set yourself your own goal and work on yourself.
What to do to achieve success – work on your mind
Getting ready for making your first steps in investing is often associated with reading books about marketing, Steve Jobs’ biography, following well-known investors on Facebook and monitoring the market. But is that all? Definitely no.
Every self-respecting investor knows that in addition to expanding your knowledge, you need to work on yourself. Develop and train certain traits and eliminate a few flaws. And what exact traits and flaws are meant here?
‘I’m perfect’ – what are the flaws of an investor?
Noone is perfect – what makes a conscious person stand out from others is an attempt to eliminate their own flaws. Investor’s worst flaws include:
- Fear – fear always stands in the way of development, slows down decision-making processes and hampers the implementation of all initiatives. If you’re overcome by fear, you will always be afraid of change,
- Greed – a greedy person always wants more and more. They think only about multiplying the profit, which in effect may ruin them, because by rushing to gain every single zloty, they stop being careful,
- Excessive pride – if you think you know everything, it means you know nothing. If you can’t verify your own actions and admit to a mistake, then you’ll keep making the very same blunders all over again. Such attitude will backfire sooner or later,
- Impatience – suddenly changing your mind, not sticking to the plan, excessive haste are the characteristics of someone who is impatient. Remember that when investing, you need to think fast, but maintain your composure when making decisions. Only those who are patient know how to implement their plan and follow it step by step,
- Hypersensitivity – in human relations hypersensitivity is a good and desirable feature. But when it comes to investing – it isn’t. By succumbing to emotions, you can become impatient, careless and make incautious decisions.
What am I supposed to change, i.e. what are the advantages of an investor?
No one is perfect, but no one is a hopeless case either. Everyone has certain advantages that are worth developing and training. To become a good investor, it’s worth working on developing the following traits:
- Diligence – this is where it all begins: if you’re not willing to work, you won’t achieve anything, because you can achieve your goal only by making a lot of effort,
- Vigilance – you need to be vigilant and keep analysing the market situation. For this purpose, it’s worth making a habit of regularly checking stock market quotations and news bulletins when having a coffee in the morning, a Redbull in the afternoon and a tea in the evening,
- Humbleness – I’m good, but I’m not perfect – it’s a principle that is worth sticking to. Real people of success can admit their mistakes and analyse their bad decisions. Knowing your faults, you know what you need to work on,
- Moderation – keep calm. To be a good investor, you need to know how to manage risk and minimise its level. Don’t rush to invest in everything. Move forward, step by step, and gradually achieve your goal,
- Be yourself – unfortunately, more and more people are blindly following the crowd. They make the same decisions, choose the same assets and are easily manipulated. It’s good to take advice from experienced investors, but decisions should be made independently.
The virtues and vices presented above are features that may hinder or help you achieve success. Stop being afraid and showing off. Be hard-working and humble. Don’t give in to emotion or greed – be vigilant and calm. Control your emotions, but always make decisions on your own. Once you have mastered those personality traits, you will be able to look at the world of investment from a completely different angle.