Essential Characteristics for Investing

Friday, January 18, 2019, 6:00 AM | Leave Comment

As we well know, stock market acts like a pendulum. There is bear market when the stocks are on the downswing and bull market when the stocks are on the upswing.

When investing, you must avoid panic in bear market. That’s when it sets you apart from panicky investors.

Keep in mind when you invest, do so for the long term. Stock markets have been known to give much better return if you stay in the market for longer time period.

Nonetheless, your objectives should include obtaining a high rate of return on your investments and the avoidance of substantial risk.

Second objective might be the maintenance of adequate liquidity.

Third could be the receipt of a high and stable income without resort to selling or cashing in investments.

Essential Characteristics for Investing

However, there are certain generic kind of characteristics when followed that will set you apart from folks who panic during bear market and start selling. That’s when they get the largest loss in their investment.

  • Don’t set your hopes too high or too low

    If you set your hopes too high and you don’t achieve what you strive for, you’ll be sad if not devastated. It’s true in all walks of life especially when it comes to investments.

    Don’t overreach for success with your investments. Be willing to sell your winners when they have met your expectations, because nothing has unlimited upside potential.

  • Your reputation

    You may have a lower profile than a star ballplayer, but your reputation is financially important too. Be careful what you post on social media, because leaving your indiscretions where others can see them may cost you job opportunities.

    Your credit history is another example of how your reputation can have financial repercussions. If you aren’t careful with your credit history, you may find you don’t qualify for the best rates on mortgage loans or credit cards — you might not even qualify for credit at all.

  • Stay with your investment longer

    according to the Bureau of Labor Statistics, the average stint of unemployment for Americans is even worse, at about 256 days. you may face a period of joblessness through no fault of your own, so protect yourself by building up a high-yield savings account that could see you through a stretch that lasts for several months.

  • Be honest

    ordinary Americans often encounter opportunities to gain a financial benefit by cheating, such as not paying your full share of taxes or padding an expense account. cheaters never fully own their possessions or their lives. The lure of risk-taking tends to be obvious, but it is good to be mindful of the consequences as well.

  • Examine your investments annually

    Ruthlessly review your investment portfolio on an annual basis. When you find parts of your portfolio that aren’t performing to your expectations, get rid of them quickly. These could include real estate losing money properties in neighborhoods that have spiraled down into war zones. Also, stocks that have turned into dogs and are on the downswing of the pendulum.

  • Keep the learning spirit high

    Successful real estate investors remain successful because they never, ever stop learning. They know the real estate business is a dynamic and ever-changing market due to economic conditions, federal rules and regulations, and other factors. So, they always stay on top of local, state, and national conditions and plan to meet the changes created by those conditions.

In a Nutshell
You may not be a “natural” for the real estate investment business, but you can make yourself into one! All it takes is a willingness to learn!

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