Being a successful investor isn’t just about maintaining rules and having a superior trading strategy. It’s also about keeping tabs on the big picture and understanding that investing is not unlike many other things in life. Success is comprised of understanding a series of big picture rules. Not unlike an investment plan, understanding the macro issues are just as important as understanding the micro issues:
1. How you think is everything – always be positive. Think success, not failure. Beware of a negative environment.
2. Decide upon your true dreams and goals. Write down your specific goals and develop a plan to reach them.
3. Take action. Goals are nothing without action. Don’t be afraid to get started. Just do it.
4. Never stop learning. Go back to school or read books. Get training and acquire skills.
5. Be persistent and work hard. Success is a marathon, not a sprint. Never give up.
6. Learn to analyze details. Get all the facts, all the input. Learn from your mistakes.
7. Focus your time and money. Don’t let other people or things distract you.
8. Don’t be afraid to innovate. Be different. Following the herd is a sure way to mediocrity.
9. Deal and communicate with people effectively. No person is an islan. Learn to understand and motivate others.
10. Be honest and dependable. Take responsibility. Otherwise, nos. 1-9 won’t matter.
Source: IBD
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.