Seven Habits of Expert Investors You Should Follow
7 Habits of Expert Investors you should Follow in your Daily Life
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| Rakesh Jhunjhunwala |
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Investment
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Stop Making Excuses
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Listen to everyone and do your own
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Reading Habit
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Learn from your own mistakes and never repeat them
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Stay Updated
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Patience
#1 They always prefer Investments over Trading
There are many investors and traders in the world, but have you seen any trader who has come in the list
of #Top100 or #Top10 Richest people. No, because everyone who has excellent experience in trading will
understand that trading cannot make you rich.
I am not saying that you should not do trading. Trading is beneficial in the short-term sometimes,
but if you want to be rich or want to make a big name in the stock market,
then I prefer you should avoid trading frequently.
For experience purposes, trading is the best thing to understand the Ups and Downs of the Stock Market but if you want to seriously
involve in the stock market, then you should avoid trading and always prefer investing over trading in your
career.
This habit of the expert
investors will surely help you
grow in the long-term.
#2 They Never Make Excuses
Many people give excuses for their background, like they are
from a poor family and they cannot start investing. Some say
they are poor and don't have enough money for investing.
Some give excuses like
investing requires an extensive amount of money and they do not
have money to invest. Some mention that
investing is very risky and we cannot take risks for earning
money.
And the funniest one they say only educated people can do investing.
So for everybody who thinks about the Stock Market like this I want
to say that firstly, you are not forced to invest big amount you can
also start investing for as low as 10Rs., also you don't need to be
highly educated.
The World's Richest Investor Warren Buffett says that "Anyone can start Investing if he/she knows only Basic
Mathematics."
I know that everybody reading this blog knows Basic Mathematics and
if you want to start investing then Excuses will never help you.
So the second habit of expert investors you should follow strictly
is to stop making excuses.
#3 Be a good Listener, but never act by seeing others
If you have invested or even
started learning about Investing, and the Stock Market then you will
notice there are many people giving advice about which stocks to
buy or which commodities to buy or at what price to buy.
Some people listen to this advice and get caught in their traps
because if you see there are only a few people who genuinely want to
serve their audience and the remaining are always been controlled by big
firms who manipulate the stock prices.
So the people who do research and show it to you and never recommend
you to buy any stock and just do the analysis of any stock, listen to
only that.
Before making any financial decision you should
consult your advisor
and after taking everybody's decision you should
do your own analysis about yourself and any stock if you want to
buy and then only take actions.
Never invest in a company if any big investor is investing in that
company. Most of the time this
news like a big investor has bought shares in a particular company
are fake and spread by some fraud organizations. So
always do your own analysis before investing.
#4 You should regularly read books and Newspapers
Many people have
overconfidence after making a successful trade or investment and
they stop their research and think that they will be always
right.
But if you want to be successful and want to make a big name in
this industry, then you should follow the daily reading habit.
One of the greatest investors and the
Owner of D-Mart, Mr. Radhakrishna Damani who has no need of
reading any book or any newspaper also
reads daily more than 13 newspapers which is fabulous, now you
can think that
most successful people also follow the simplest of habits which we
never notice.
#5 Accept your mistakes and always learn from them
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| Mistake |
The World's greatest investor Warren Buffett also
recently after the Covid-19 crash sold their every share from the
airline industry
and also apologized about their investment mistake in front of
the entire world.
If you never accept your mistakes you will
never learn from them, so accepting your mistakes, learning from
them, and never repeating them is the
5th key to success, and this thing is always done by many
big investors.
There are many investors who get their decisions wrong but the
difference between them and small investors is small investors
never accept their mistakes and never act on them and this leads to
their big losses.
This is the habit that you will never regret having
even you are in any different industry.
#6 Always stay Updated
One of the key tips and habits of expert investors is
they are always updated, and this is the
most important thing if you are a trader or an investor.
In the Stock Market if one day also you are not updated
you can face a huge loss because the
value of stocks is changing every second and if you miss any
news, then you
can lose many big profits and can also face many big losses.
There the habit of being updated is a must in
the Stock Market Industry.
#7 Have Patience
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| Waiting |
Money requires time to mature and anything which can give you
instant money is fraud or either temporary, therefore giving time to
your investments is as important as picking or analyzing any
stock.
For example,
The Bull of Indian Stock Market Rakesh Jhunjhunwala had purchased
a stock named Titan in 2001 at a price of 3 Rs. and
they had so much trust in that stock that they are
holding that stock even after 19 years and now the value of the
stock is 900 Rs. and
the 52-week high of the stock was 1300 Rs.
After this example, you will never ask why you should apply
the habit of having patience.
Even you have made a profit in any stock then also
if you believe in the business model of that company then instead of
booking your profit you should have patience
and wait for the right price to come.
Rakesh Jhunjhunwala also said that
the Stock Market is a way of transferring money from the impatient to
the patient.
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