What makes a good investor?

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Investing in the stock market or anywhere else, while not as hermetic a profession as it used to be, still isn’t for everyone. It promises substantial profits but involves significant risks and requires a lot of effort. To be good at it, you have to have specific qualities.

The ones who wish to be successful in this business are very much in control of their emotions, which exceed the two fundamental ones that usually dictates average players’ moves: fear and greed. On top of that, they are insightful about outside psychological factor. It has been shown that perception can affect investing reality where even a few careless words may have a substantial impact on the market. Therefore, pages like How Perceptive are You by Unibet may help establish some basic abilities in the emotional intelligence department, but also be useful in determining whether we have what it takes to be good investors.

Such investor is also passionate about the game. While caring about the money, he uses delayed gratification to achieve an edge. He knows what he is doing, but still accepts the probability of failure, and therefore, can thrive on risk, with a risk management plan in place. Whatever he does not know — and the ability to keep one’s mind open always is crucial — he is willing to learn. Like all professionals, serious investors pay attention to important statistics, indexes and indicators and in general, read more and spare more efforts on studying than the average person. They gain experience by drawing conclusions and adjusting. This also means learning quickly from mistakes, which are bound to happen sooner or later. When miscalculations occur, they are treated as opportunities to do better the next time.

Lastly, a solid investor is focused on the job, persistent, disciplined and patient when it comes to waiting for a plan to materialize. He always has a defined strategy, such as portfolio focus or portfolio diversification, and sticks to it. He takes into consideration short and long-term goals, techniques, capital gains or cash flow. At any moment, he has prepared an exit strategy as well, to be ready for an unpredictable future that is quite common in this industry. And the things that could be foreseen are used to their advantages, such as trends, market sentiments and the leverages, are exploited.