Stock Market Investment Habits, Success and Failures
SUCCESS POINTER A.
Your ability to buy and sell right is what matters. Your exit point is as important as your entry B. Your loss is not just your entry but your exit C. Put your self outside your emotions D. Follow your methodology i. Put your structure in place and define your aim for investing ii. How long do you want the investment to last (short/ long term) iii. Determine your success ratio iv. Get to know when to get in and out v. Be discipline and don’t follow the masses.
HABITS OF SUCCESSFUL INVESTORS
a) Have the right investment philosophy about money and know that it is your right to be rich.
b) Develop the right mind set about financial abundance.
c) Always be in control of your money.
d) Always be risk oriented and have a high propensity to risk.
e) Always look for and explore investment opportunities.
f) Be more futuristic, cut your expenses and invest.
g) Continuous self development is a pre-requisite to being a successful investor.
h) Set goals for your self.
i. -Set proper investment plan which makes investment a lifestyle.
ii. -Your goals must be in line with your passion.
iii. -Be specific with your goals iv. -Write down your goals Be a more asset person than a liability person -Assets are thing that take your money to bring more money -Liabilities are things that take your money with no returns
REASONS WHY PEOPLE FAIL IN THE CAPITAL MARKET
1) Poor Money Management: This involves setting out a certain percentage of your income as the amount of money to be invested. How much to invest with depends on your income and your ability to meet up with your regular living cost.
2) Lack of Plan: Trade your Plan and Plan your trade. Set out your trading plans and modality before the trade. At what price do you want to enter a trade and exit the same trade with a stipulated time.
3) Lack of Focus: As an investor you should have focus and be pragmatic about your investment. Do not Invest in too many stocks at the same time on a hear say basis or emotionally without due diligence on where and when to invest
4) No Trading Method: There are best times to invest in a particular company. As a general rule always invests towards the end of the company’s financial year, provided the other quarter results are good when compared with the past results.
5) Trading (Buying and Selling) too often: Being Impatient towards the invested fund. Do not buy and sell share without making some profit out that investment. Provided the fundamentals of a company are good, do not sell your shares out of panic. The capital market is a volatile and dynamic market and the prices of quoted company’s are bound to move up and down.
6) Lack of advice from investment advisory service providers: It is always advisable to seek the advice of professional in financial services sector of the economy in your area of investment. Consult your stockbroker or an investment advisor for proper advice. A stockbroker is a dealing member of the stock exchange that provides services to anyone (an investor) who wants to buy and sell shares. Stockbrokers provide personal services, so before you begin, talk to a few stockbrokers. Find out what services they offer. A financial advisor is someone licensed by the Securities and Exchange Commission to render financial advisory services to the investing public.
7) Time Management: Failure to consider time as an important factor towards the actualization of a successful investment objective. To be rich takes time and the right attitude and not the get rich quick attitude 8) Ability to cut losses: As an investor, additional effort should be made to cut frivolous expenses that are not adding value to your quest to obtain financial freedom in life. Every money that is not in investment die with inflation.
9) Lack of passion about investing in shares: Investment should be a thing that is done with so much passion. As an investor you should have passion about investing and watching your investment grow will psychologically add more years to the life of an investor.
FOOD FOR THOUGHT As a man thinks in his heart so is he, therefore a man is limited by his own reality of what is possible financially, except he goes beyond his own reality of what is possible. Your level of financial buoyancy is determined by the level of your financial literacy Your desperation will take you no where but your determination will take you anywhere you want to reach You can never be rich by living from pay cheque to pay cheque because you are working for money and that makes you a slave of money. A slave can never be higher than a master. Until you make your money work for you, you cannot be rich. Investment is making your money work for you The choice to be wealthy and successful is limited to the person mental believe of what is possible ( Robert Kiossaky) You can learn to be rich but you cannot be dragged. Your attitude determines your altitude. Success is possible if you know what it takes. It takes smart work and not fat work Life does not always give what one deserves but what one demands Knowledge is not power but the right knowledge applied is power
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