You may or may not be: A successful investor!
How to be a successful investor? Many ponder over this question, but few often experience the true nature of such a perplexed study. In order to be a successful investor you must first study to expert the philosophy of one. You must direct your daily thoughts and energy to mastering the train of thought that interconnect the world to your every decision. A successful investor surely is up to date with world matters in all sectors. An investment appreciation is largely driven by mass psychology which that in of itself is driven by several factors. We may have established the all to much repeated semantic satiation of “buy when selling, sell when buying”. Of course easier said than done. In our current era we have the best of the best sitting behind one another analyzing data on several monitors and executing buy/sell orders 24 hours a day, 365 days a year in every timezone. Each sub sector has its unique way of studying market conditions, institutions such as hedge funds, funds of funds, mutual funds, market makers and brokers all are competing with one another using variety of information at their disposal and they both certainly and greatly influence a direction of any security. How market makers value securities is counter intuitive to how you will value yours because their purpose is different than yours.
So you must be the architect of your own study, using previous knowledge and tools to better engineer your methods that are unique to your mindset and your personality. Therefore, you must carefully choose your time frame and maintain constant vigilance toward emerging events that can influence your merits. In addition these elite teams have access to proprietary data and algorithms that do loads of analysis in matter of seconds. Well, that explains why value investing has grown to be more of a value in today’s world than it ever was. As an investor you are virtually outnumbered in every aspect of information analysis.
This brings me to the most difficult principle of investment. To be able to identify opportunities, or perhaps be able to foresee intuitive probability of an emerging event that you believe will be a driving force behind any security appreciation. Further, managing your decision merits on an ongoing basis as events unfold that can ultimately affect your probability outcome, by tipping the favor in either direction. Financial statements should be your last stop for analysis. I do not wish to understate the importance of financial analysis, but I certainly believe that is information anyone with a 4 year degree can analyze. The true weight behind any investment decision is largely the application behind your abilities to foresee future growth behind any target. And that growth is compromised of ongoing input from both external and internal surrounding factors; both environments being tightly interconnected with each other. Every investment decision is like painting a masterpiece, the artist has long painted the picture in its head before taking on the brush and during the strokes of his brush he may or may not tweak his ways. As you may have perceived it is extremely difficult to compete with institutional prop trading algorithms and market makers that make the market as news and speculation flows through the wire.
I must further stress the importance of an investor being constantly engaged in his work and direct all his mindset toward acquiring and analyzing information relating to his study. I repeat, a successful investor cannot be half engaged as the resources of his brain will be limited and his self doubt will be of unease to his decisions. As I sit here writing this page, I realize the importance of managing your brain’s resources and minimizing distractions. Distractions are the true destruction of your brain’s resources. Analyzing a particular target requires at most dedication to cover as many what if scenarios as possible. Financial ratios of all kind are not enough as being able to construct any form of financial statement from ground up is not. I do not consider myself to be a financial analyst, but rather a securities analyst. If you take the effort to ask yourself some practical questions, you may find a subtle and important difference in the two. I analyze securities, which involves analyzing financials and a whole lot more. You must get accustomed to both macro and micro influences, further you must study how the street perceives and values your particular target and what factors are reflected on the price of such a security. During any form of valuation you must accept the notion that “study of economy” sits at the top of the pyramid. Whether how detail you want that study to be depends entirely on you. As long as you set a comfortable target and you have enough knowledge to justify the current decision. Do remember the variability of such a study thus, maintaining your vigilance toward emerging events is a must.
Detail understanding of global economy is imperative to your timing and position. Every security whether it comes in the form of a ticker symbol or a large block of concrete walls has its unique set of important factors that you must first identify than analyze. Every sound investor must realize and accept the fact that revenue growth slows, guidance of revenues growth do get cut and the economy does contract. There is no such utopian notion that growth should always exceed expectations and economic conditions should never be challenging. A sound investor is always prepared for such drastic events with proper risk and money management. When panic settles, those with sufficient capital are at the bargaining table. Feel free to put a lot of your eggs in one basket, but don’t harm the bird that lays them out for you. Not one individual or institution can be fool proof to drastic events and if you think otherwise I would politely suggest you stop wasting your time here.
One paragraph, great. I'll get right to reading that.
Guys, check out this other thread he started:
http://www.wallstreetoasis.com/forums/an-economic-hamster-marathon
Somebody's online with no parental controls...
Looks like the only thing you're parenting is a monkey on your head and I'm just baffled on how someone with the job requirement as yours -screening topics at a very fast rate and replying with none sense biased opinion (thus why you have a whole lot of virtual bananas)- qualifies to put any credential weight on the non sense baffled. Does anyone even need a high school diploma to do what you do ? Let me know when an opening comes along, I'll have my five year old apply, I won't mind the extra income.
http://www.youtube.com/embed/wfUU6coziu4
OP must have learned English from the back of a cereal box?
rufiolove -- I may have found your new tag line.^^
What happened to WSO haha?
This site is a joke lol, I mean we got the bashers that are retired and bored, so they go on a tangent poking around. Whatever happened to just being entitled to your own opinion and respecting others', regardless if you agree with it or not.
lololololol
You guys are fucking killing me. This kid is comedy gold.
I suppose your inferences are all based on a bunch of 010111000001010100100000 that paint reality for you. In the interest of relativity if I'm the kid than you must be the infant that I'm amusing. Or another subtle possibility of your personal timeline is depicted here exclusively for you :
I just realized you're very similar to that flash pop up update screen that constantly pops up on your computer screen, as a user you are aware of the fact that it's not secure and makes your computer crash from time to time, but after ignoring the several updates you decide to go with it nevertheless.
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