If you are interested in the world of trading and its history, you can probably name some well-known successful investors. Warren Buffett, George Soros, Abigail Johnson — all these names seem so distant: yes, they succeeded, but what is in it for you? You may feel confused and be discouraged, not knowing where to start and what to do. But instead of giving into this overwhelming feeling, read this article, learn about the differences between experienced and novice traders and use this knowledge to your advantage.
The success of the great investors is, without doubt, a phenomenal thing, but there are always similarities between successful people. What is it that they do right? What makes the great investors so great and is there a secret they know that you do not? How can you use their success in your favour? Let’s break it down.
1) Successful people value education
Good education starts from a young age, but it does not stop there. You need to continue learning throughout your whole life. When it comes to trading, and it has been said many times before, learning is the key. A mindful approach is not possible without a good knowledge base.
Investors that succeeded always have a story to tell and it often involves a period in their lives where they acquired knowledge, read books, studied economics and did a lot to get where they are now. Do not overlook this step and remember that you will need to climb the ladder to be at the top.
2) Experienced traders learn from mistakes
Everybody makes mistakes, wrong choices, bad decisions. It can happen for many reasons, and the mistake is not what is important. The most important thing here is your reaction. Many novice traders, having experienced an unfavourable outcome, often get emotional and give up in the end. Experienced investors use their mistakes as valuable lessons.
They are not afraid to change their approach, try something new and be different.
Try to make the most out of losses. Keep track of all your deals and analyze them. Make sure you understand the reasons for a positive or negative outcome and base the following investment decisions on the data you have.
3) Experienced investors do not rush
Even those of them who raise up from the bottom are not in a rush to make money. Money is a good incentive, but the desire should not consume you or control your actions. Rushing to invest just for the sake of it and trying to take every little opportunity would just be spending your resources irrationally.
Instead, take your time. You will not be making insane amounts of money straight away, because that is simply not realistic. But you will be improving with time, if you allow yourself to slow down and do it in your own pace.
If we had to sum these three things up, we could say that one main thing that separates experienced from novice traders is a more constructive and consistent approach, so you may start applying these tips to your strategy. Evaluate each of your decisions and you will see progress.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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