Personality Traits of the Best Investors
The best investors share these 6 personality traits
Successful stock market investors have several traits in common. The more your own style mimics the greats, the more likely you are to produce profits.
Above and beyond all the other traits, the degree of patience you possess with impact your final results. Perhaps this is because patience is actually the exact opposite of the profit-killing emotions which plague most investors, such as impatience, greed, and fear.
In fact, a steady hand will often eliminate all the stock market mistakes which come along with frustration or anger or regret. In the world of investing, patience means profits.
Ability to Tune Out Noise
This personality trait will serve you well, whether we are talking about the stock market, mainstream media, or even noisy kids. With constant distractions, and as many as 10,000 ads passing in front of us each day, how can anyone survive unless they are able to ignore the commotion?
Even if we focus solely on the stock market, the deluge of data points and numbers is still far beyond overwhelming. However, the better you can get through all the mixed messages and contrarian opinions, the greater your final trading account balance. Don't get discouraged, you will find that you get pretty good at this stuff, and pretty quickly too!
Staying the Course
Have you ever sold a stock, only to watch the shares climb higher?
Similar to its close cousin "patience," staying the course should typically help you remain ahead of the pack.
Said another way, trading more often does not usually result in greater or better trading profits. Quite the opposite, actually—frequency of trading is typically inverse to profits.
There were scores of shareholders who sold too soon in Apple, Microsoft, and (insert just about any gaining stock here).
Those investors who are willing to stay the course tend to outperform the majority of jumpy traders, who switch directions, or change their minds, or get crazy with emotions.
Calm in the Storm
When the sky is falling, and crowds are trampling one another to dump their shares, the investors who remain calm win. In fact, the relaxed and thoughtful people among us will be able to recognize all the undervalued opportunities that others miss during the frenzy.
Doing the Homework
Rather than bet on opinions based on limited knowledge, successful investors continually learn. Most people make decisions based on sound bites or partial arguments.
In contrast, the greatest stock market traders conduct their own due diligence—and learn—until they know which investment moves will pay off. When they aren't sure about a trading move, they learn more—until they know plenty, and have a pretty solid understanding of their potential choices.
Asking for Knowledge
Great stock market investors are wise enough to know what they don't know. They lean heavily on the opinions and knowledge of experts and specialists.
They are also not too proud to ask questions, and they tend to spend the time, in the beginning, to get all the facts, rather than doing their learning once it is too late.
In others words, they make sure that they are well-informed and well-prepared.
The beauty of all of these personality traits of the great investors is that they can easily be replicated by you, right now. You won't need to be Superman or some trading troll in a dark basement with 7 monitors—just put in the work required to make wise choices, and stay calm even during the greatest market panics.