The Verus Team

Characteristics of Successful Investors

Written by: George Shirley. Any opinions are those of George Shirley and not necessarily those of RJFS or Raymond James.

I have worked with many clients with very different investing goals and strategies to and the ones who have had the most success in the markets share a number of similarities. In no particular order:

They have a long-term perspective.
They expect market declines and look at declining markets as an opportunity.
They do not invest money that they may need in the near future.
They do not over-react, but they do react when market conditions change.
They are willing to change their mind.
They are not afraid to cut their loss and move on to something better.
They don’t invest in something they don’t understand.
They learn from their mistakes.

I think the last one is probably the most important in the whole list. Every investor makes mistakes as part of the learning curve, but far too many make the same mistakes over and over again. Part of the role of an advisor is to help people avoid the mistake of others. Now if I would just take my own advice…

Investing involves risk, investors may incur a profit or loss regardless of the strategy or strategies employed.

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