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Good investors know that the market is much bigger than any one investor. An average investor first spends his money then invest what remains. On contrary, a good investor first invests and later spends the rest.
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They First Set Their Financial Goal In the words of Alan Lakein “Failing to plan is planning to fail”. For right investmentplan, you need to first be clear with yourfinancial goals. Yourfinancial goal tells you where you want to reach in the defined time horizon, and your investment plan then helps you to draw a road map to reach your financial target.
They Never Say No to Research “The more you know, the better you do”. Good investor never says “No” to the knowledge of the market. He frequently reviews his investment portfolio and is updated with the market news. Therefore, he understands the position of the funds he has invested in. He also has maximum research and updates of the company he has invested in, their investment strategies, as well as, their philosophy.
They Take Right Decision At The Right Time “Timing is very crucial.” Good investor keep an eye on the market trends, falls, rise, and volatility. They are updated; they have a track on the market activities and growth. Their understanding and knowledge help them take a calculated decision at the right time.
They Keep Their Calm With patience, a good investor creates wealth through compounding. They have faith in their plans, and hence, they wait to keep their calm. They usually do not feel bad about the market volatility; they rather wait patiently to celebrate market rise.
They Know Their Risk Tolerance A good investor knows the inherent risk in the investment instruments that he has invested. He has well in advance prepared his plan, he frequently reviews his investment portfolio, and he has updated with the market trends. Knowing your risk tolerance helps you make the right investment decisions.
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