Explain the Qualities of a smart investor?
Answer / chaitra veerakariyappa
QUALITIES OF A SMART INVESTOR:
1) Smart investors have a plan for investing, and they
stick to it: It is very easy to be tempted by a tip about a
hot stock. However this is not the way Smart investors
invest. For example, if they are 40 years old and have
twenty years until retirement, they implement a 20-year
investment plan. They only buy securities that they have
researched.
2) Smart investors invest consistently: First, they
invest a part of their funds in securities with a growth
potential (like stock & mutual funds). Second, they keep
adding to their investment principal regularly.
3) Smart investors are patient: It often takes time
for a good investment to show results. They understand
this, and therefore do not get excited about the daily ups
and downs of the market. Smart investors don’t expect
instant growth.
4) Smart investors are not emotionally tied to their
investment positions: They know that to be successful, they
must not be emotional towards their investment. No matter
how attractive an investment looks or how badly an
investment has performed recently, selling at the right
time is just as imporant as buying. They are aware that no
investment will move up forever, and they are able to sell
it when right.
| Is This Answer Correct ? | 19 Yes | 2 No |
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