How to become an investor

Investor makes investments. He or she invests in financial schemes.  Investing is one of the major characteristics of an investor. Becoming an investor isn’t difficult but investing as an investor will require a lot of experiences and understanding of investment principles to make the right investment. Becoming an investor isn’t limited to investing only or the buying of stocks but include taking of risks to make profit. No investment is risk free and most investors are risk takers who takes calculated risk before investing their financial resources. Many sees investment as a science, some as an art however it can also be a craft. Becoming a prudent and successful investor is not child’s play as there are many lessons and experienced attached to such level of personality.

When you start buying stocks, bonds, shares, real estates, and currencies, you have started making an investment and the viability and profitability of such an investment will be determined during the life span of the projects. Manty people invest in themselves through the accumulation of knowledge by taking additional courses and earning more qualifications in academics. Some even take professional courses to boost their level of self-investment. Some of things you need to rake note in the process of becoming of investor incudes:

1. Avoid influence or pressure to get things done

As an investor, you should never allow yourself to be defined by others and their opinions. An investor will always build his or her own thoughts and avoid seeking affirmations and confirmations from anyone and everyone. Letting others influence your investments thought might be suicidal for your growth as a successful investor. Buy and invest on your terms and avoid being influenced due to your lack of information about the risk appetite, assets allocations, financial resources and incentives of others. You can never know all about someone therefore avoid making decisions and investments that may not be best for you.

2. Never be in an hurry to make profit or gain from investments

Growing up as an investor is not something that should be rushed because the joy is meant to be enjoyed as it flows. The questions of when you will make it as an individual or investor is one of the major thoughts and discussions most of those in their adulthood get and participate in. Investment are seeds which germinate then grow overtime. Just as explained in science, a seed transforming into a plant will go through some process. In the process of growing, some seeds get affected and wouldn’t grow into plant indicating bad investments.

Never be in a hurry to see your investment grow or yield income as an investor. Haste brings nothing but waste. Investment is nothing but a journey towards achieving financial independence. The sooner this is achieved, the better for you as an investor. It should be noted that not all your investments will pay off. Some of it will go bad will some will surpass your financial expectations. The fear of making investment shouldn’t stop you from investing as the end results will justify the process. There is no business or investment without an iota of risk therefore over worrying about investments will only make you miserable.

3. Time is an important asset

One of the most important and irredeemable assets that you should never joke with either as a prospective or potential investor is your time. An investor earns a finite amount by making the right use of their time. Saving and investing more will help in growing your wealth. Make sure you place a good value on time but that doesn’t mean you should enjoy yourself at times. Remember all work and no play makes jack a dull boy. Straight adequate balance between your work and enjoyment time.

4.  Avoid being emotional and attached to your investments

Being too emotionally attached to your investments won’t make you a bad investor but you may end having expectations below your predicted and expected outcome. All situations in life will always undergo a metamorphosis. Things including your environment will experience change. Your stocks and assets which have provided fantastic returns in the past might not be really able to do in the future. For instance, some who invest in stocks or real estate for the past 10 years still think it’s the best and most profitable investment which may not be true if the investor had knowledge of more investment ideas. Many stocks have depreciated in value and will never rise again even up to the index price. Do not become too attached and emotional to your investments.

5. Respect others

A good investor will give respect to everyone around him or her. You need learn how to be tolerant to become a good investor. Always make sure you respect the opinion of those around you as everyone have a different set of experiences, thinking and knowledge you can learn from and tap onto for making investment. Make sure you respect both your investments and the market you are investing in and never become too sure of the trends. Being humble, tolerant and paying respect to others will help you become a successful investor.

6. Develop a hobby for investing and understanding success

Having a hobby will help you develop a passion for it as passion is one of the major things that keeps you going even when you are tired. You need do develop a hobby for investing to become an investor and also understand the meaning of success. Success investing doesn’t translate to more money at times but go far back as losing to win again. Investing can be improved on and on with practice as investing will test you both physically, emotionally and strategically.

Types of investments

There are different types of investment for an investment which can help you achieve financial independence and freedom. Some of the major types of investment are:

1. Stocks

2. Real Estate

3. Bonds

4. Banks Products

5. Cryptocurrencies and NFTs

6. Insurance

7. Security Futures

8. Retirement

9. Commodity futures

10. Education funds/ Saving for education

11. Options

12. Mutual Fund and EFTs

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1 Comments

  1. I am a small investor of shares. This is really interesting.

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