And how to attain them
In my previous post, I introduced 8 out of 16 traits almost all successful investors share. And pointed you in the direction towards integrating them into your own investing process.
If you haven’t read that article, please do so before you scroll down below. It will shed some light on why you should care about these 16 traits in the first place.
But if you’ve already read Part 1, let’s dive straight into the remaining 8 traits of consistently successful investors:
Trait #9: Turn Off All Distractions And Focus
Focus is a crucial yet underrated skill. All the greats know it, regardless of their field.
Warren Buffett once said that when he and Bill Gates were in a group of 20 people and were asked to write down on a sheet of paper the one word that accounted for their success…
They both wrote “focus.”
They had only met twice before that day. And had no clue what the other person wrote before the whole group read their words out loud.
If you succumb to the endless stream of news and opinions investors are bombarded with…
You’re not only more likely to fail, but you’ll also destroy your emotional well-being in the process.
There is no point in even trying to keep up with all the events and changes that are constantly taking place. It’s completely overwhelming.
Instead, build a system with clear rules and plans. Then follow them religiously.
Easier said than done, I know. But at least take the first step now by disregarding 90% of market-related news.
Then, start gravitating to a new decision-making system to replace said news.
Trait #10: Be Responsible And Always Hold Yourself Accountable
Taking responsibility for EVERYTHING you do, good or bad, produces an extraordinarily liberating feeling. And leads to an irreplaceable sense of accomplishment when success comes.
Most people want to take credit for the wins while blaming everyone else but themselves each time things go awry. Successful investors (and people) never do this.
Instead, they take responsibility. And do their best to fix every bad situation that happens. All the while knowing it’s not what happens that counts… But your reaction to it.
Blame others for every problem you encounter, and you forfeit a chance to improve.
But do your best to figure out why things went wrong and act to stop them from repeating ever again… And you’ll grow as an individual and investor.
Finally, being accountable implies always being 100% honest with yourself. Especially when evaluating the way you invest.
So, your first step to accountability can be honestly answering this question:
Are you happy with your investing approach? Or do you think there’s room for improvement?
If it’s the latter, act now.
Trait #11: Trust Yourself To Figure It Out
If you’re setting outcome-based goals and always dreading if things will play out as you planned…
Fear, hesitation, doubt, and indecision will eat you alive.
So, try focusing on the things you can control instead. Like building a verified investing system and then following your process and strategy without exception.
Trying to control the uncontrollable will only drive you crazy. It’s not easy to stop doing so and fearing outcomes, I know. That’s characteristic for any endeavour you take, investing included.
But you must try doing so if you want to become a consistently successful investor. The first step you can take now is thinking about how you can build a process you trust 100%.
Trait #12: K.I.S.S.
Listen to the U.S. Navy and its motto:
Keep It Simple Stupid (K.I.S.S.)
Don’t let your investing process be even a fraction more complicated than necessary. Always aim for simplicity and avoid complexity like the plague.
One of the biggest tripping points for investors is overcomplicating things by trying to solve the unsolvable: Short-term randomness.
You will lose in the short term. A lot. There’s no escaping it.
And if you don’t accept that as part of the investing game, you’ll never learn from said losses and put processes in place to minimise them in the future.
Trying to eliminate losses entirely leads to a chaotic, on-the-fly decision-making “process” that’s doomed from the outset.
Things don’t have to be complicated to work. In fact, simple is usually best.
But as Einstein said: “Everything should be made as simple as possible, but not simpler.”
So, ask yourself if your investing approach is as simple as possible? If not, what can you do to make things simpler while getting the same or better results?
Trait #13: Stay The Course And Understand Objectivity Is The Gateway To Consistency
Both consistency and objectivity are mental skills I’ve written much about in the past. So, I won’t go in depth today.
What you should know is that these two skills manifest themselves through your execution of trades based on a pre-made, researched plan.
If you make investment decisions regardless of your first, almost always emotional, observations…
And use verified research and measurements instead…
You’re an objective investor.
Make decisions in such a way over and over again — and you’ll become a consistent investor.
Now, acquiring said mental skills is a true challenge. One many investors never overcome.
But you can avoid their fate. The first step to doing so is making a plan that outlines robust decision-making criteria. Then do your best to stick to said criteria come what may.
Trait #14: Manage Your Expectations, Then Be Neutral
Never raise your expectations to the stratosphere and expect positive results to come in whatever you do.
Instead, adopt a neutral mindset.
“Neutral” means bias, previous experiences, and personal expectations should be forbidden in your head.
Expectations are just distractions that trigger an emotional response. But if you manage to keep your emotions in check and look beyond single events… Long-term profitability is likely to follow.
You never invest to lose, of course. But as I’ve mentioned, losses are a standard part of investing and your best opportunity to learn.
So, think of small losses as victories against larger ones in the future. Do this, and you won’t just feel better on the inside…
You’ll also start growing your capital faster and faster.
Trait #15: Be Patient But Persistent
Nothing great was ever built over night. Successful investors have spent years honing their skills (sure, there are the lucky few).
Becoming a successful investor in the market takes time.
So, focus on building the skills to achieve your long-term investing goals one day at a time…
And success will come without you even realizing it.
Trait #16: Always Invest In Yourself First
No matter how good you get and how much profit you start raking in…
You must never stop learning about the market.
I know I learn something new every day. Which keeps my senses sharp.
To become a consistently successful investor, you need to empower yourself with knowledge and skills. The former helps you know what to do. And the latter ensures you do what you know.
So, never stop learning.
It’s cliché advice, I know. But following it is a prerequisite for continuous success in any field.
Investing is no different.
The Secret Of Continuous Success In The Market Lies In The Journey, Not The End Point
There you have it, last week’s and today’s article covered the 16 traits virtually all successful and peaceful investors share…
Along with guidelines on how to go about integrating them into your own investing process.
Here’s one crucial piece of advice for actually doing so:
You don’t need to master all or even some of these 16 traits to start getting market-beating results.
The market-beating power hides in the journey to attaining these traits. And in setting a goal to do so, followed by doing your best to accomplish said goal.
It’s never too late to start your journey to becoming a consistently successful investor. But the best time to do so is NOW.
And if you need help along the way, you know where to find my team and me.
To your investing success.