What qualities should an investor have for success ?
Reasonable level of intelligence.
Sound principles of operation and not allow emotions to corrode them.
Above all and the most important, firmness of character. It is this firmness of character which enables a operson to buy at the peak of panic in a bear market. And to sell at irrationally high prices at extremes of bull markets.
This is so because it is the decisions of the investor which affect his performance.
You are neither right nor wrong because the crowd agrees with you. You are right because your fact and figures are correct. This quality gives an investor to have faith and confidence in his decisions and ignorer what the crowd is doing. As always happens the general crowd of investors will be buying shares at the peak of bull market and selling at troughs of bear market.
As Emerson had said, it is easy in the world to live after the world’s opinion, it is easy in solitude to live after our own but a the great man is one who in the midst of a crowd keeps with perfect sweetness his independence of solitude.He who keeps his cool when all around him are losing their heads and above all blaming it on him, he will be man enough to make a fortune in equity markets.
He who can be comfortable without being part of the crowd. This gives an investor the ability to be even minded
Zig when others are zagging and zag when others are zigging. In continuation of what has been written above, an essential quality than an investor must have is to able to sell at bull market highs when everybody is buying i.e. Zig when others are zagging and buy at bear market lows i.e. zag when others are zigging.
Monday, November 17, 2008
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