The question is – Who doesn’t want to become one?
You save and invest your hard-earned money, all with the aim of living a comfortable life when the salary cheque stops coming.
With your financial goals in mind, you make resolutions and sometimes also show your willpower to achieve them.
But then, is this enough to become wealthy over the long term?
The answer is – No!
To become a wealthy investor, you don’t need only willpower. What you need is the right investing habits and the determination to practice them.
You see, simply deciding to change your investing behaviour may work for a while. But when you are faced with the stresses of other life events, like the need to pay off that burdensome home loan or to fund a family emergency, that change of behaviour is likely to succumb to an emotional desire for making fast money.
But the fact remains that investing is not a 100-meter race. It is a marathon, which requires you to practice the right habits.
There are several habits that can stand you and your investments in good stead over the long term.
Some of these are:
- Habit of reading – Annual reports, Warren Buffett’s letters to shareholders , The Intelligent Investor
- Habit of seeking capital preservation more than capital growth
- Habit of studying risk in every investment (Ask yourself – Can I lose my entire capital by investing in this stock?)
- Habit of doing proper homework before investing
- Habit of not timing the market and instead investing regularly
- Habit of admitting mistakes early
- Habit of patience
- Habit of keeping emotions under control while investing
- Habit of taking 100% responsibility for your actions and results
The great philosopher Aristotle once said, “We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
You can excel in stock market investing and earn great wealth from your stocks over the long run, but only if you practice the right kind of habits.
This is what will separate you from other investors who are out there running a rat race and not knowing what they are doing, why they are doing it, and where they are going.
Always remember this – You don’t need to become a different person to become a wealthy investor. It’s never what you are, but what you do.
Now tell me – What good investing habits do you practice in your aim to become a wealthy investor?