8 Signs That Show You Are A Seasoned Investor
What makes a seasoned investor? Probably experience and time. I bought my first stock when i was 21 years old. I remember reading an article about Warren Buffet in a magazine and being inspired. Not having much role models during that age, he became one major influence in my life. His story was inspiring and I knew then I wanted to be like him. Little did I expect it will take decades of experience and learning to gain the wisdom and insights. There is no end to learning for investors.
The 8 Signs of The Seasoned Investor
1. You have the mental discipline to weather large corrections and recessions resulting in 30% or above asset price declines.
2. You understand and can specifically articulate the reasons why you own the stocks in your portfolio when asked.
3. You do not lose sleep over short term large declines in asset prices and can remain focused on the long-term prospects.
4. You understand the difference between trading and investing and become more cautious of tax implications.
5. Fast rising markets cause you to have mixed feelings. Markets that are more volatile and in correction phases excite you because of opportunities that may be found in prices.
6. You have the tenacity to purchase when others are selling.
7. You are disciplined and have your own specific allocation strategy and know how to manage risk.
8. When you have a failed investment, you are not emotionally surprised because you weighted your risk to reward prior to the investments made.
Are you a seasoned investor or slowly becoming one? Thank you for reading.