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9 Must-have Skills to Invest like a Pro

9 Must-have Skills to Invest like a Pro

When people think of investments, they usually associate the word with investment banking or the stock market. In this information age, there are boundless vehicles for building long-term wealth, like real-estate, information marketing, venture capitalism, business ownership, franchise, and network marketing, to name a few.

With pensions on the decline, and with governments less and less able to support their aging population, a comfortable retirement is increasingly becoming an individual’s personal responsibility. It’s now time, more important than ever, for us to sharpen our investment skills to secure our own financial future and security. While we’re at it, why not go for gold and secure our financial freedom too?

Here are 9 must-have skills to invest like a pro.

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1. Delay Your Gratification

A study gave children two marshmallows. The young participants were promised two more if they waited 15 minutes and didn’t eat the marshmallows. The ones who delayed their gratification were much more likely to succeed in life than the children who caved to instant gratification. Pro investors don’t eat the marshmallow. They practice patience and invest up front to reap long-term rewards.

2. Distinguish Myth from Truth

Pro investors don’t believe everything they hear in the News. They base their decisions on advice from mentors who they know have walked their talk. They base their real-estate decisions on economic fundamentals, their online business decisions on client feedback, and their stock investments on trends – not spikes. They don’t panic about looming bubbles, bursts, or crashes.

3. Become Financial Literate

Financial literacy is not a talent reserved exclusively for math geniuses. As Robert Kiyosaki, author of Rich Dad, Poor Dad, teaches: financial literacy is educating yourself on the relationship between income (what comes in), expenses (what goes out), assets (what you own), and liabilities (what you owe). Pro investors work on their business, not in their business. Pro investors also own assets that work for them, rather than them working for money.

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4. Leverage Your Time

Pro investors work smart, not hard. They leverage time by investing early and for the long-term. They leverage other people by hiring them for their time and expertise. They leverage money by using other people’s money to create more money (via mortgages, venture capital, etc.). Delegating tasks is essential to maximizing profits, a la Tim Ferriss – a pro investor who works The 4 Hour Work Week.

5. Discipline Yourself

In this age of social media, there are shiny distractions everywhere. To succeed in building long-term wealth, pro investors practice daily self-discipline. They “wax on” and “wax off” consistently and persistently on their daily, weekly, monthly and annual goals. They don’t get side-tracked by people who are not on track. They prepare their day the night before. They also conquer one big important task, first thing in the morning before they ever open their inbox.

6. Master Your Emotions

I.Q. (intelligence quotient) has taken a backstage to E.Q. (emotional quotient), says Daniel Goleman. E.Q. is a measure of emotional intelligence: the ability to stay calm under stress, think creatively under pressure, and recover quickly under failure. Pro investors don’t have knee-jerk reactions to external circumstances. They pause, quickly weigh their options, and respond in a way that creates the outcome they want.

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7. Just Decide

From the pages of Think and Grow Rich, the premier guide to wealth and business success, pro investors are decisive. They trust their intuition, decide promptly, and course-correct along the way. They don’t fall into the Black Hole of analysis paralysis. Most people follow the ready, aim, fire motto. Pro investors follow the ready, fire, re-aim motto.

8. Persist

Pro investors plan their work and work their plan – even when they don’t feel like it. Once they’ve chosen their investment vehicle, they go deep, not wide. They become experts in their business or investment vehicle. They maintain enthusiasm between highs and lows, wins and failures. They learn and feed those lessons back into their next action step.

9. Lead Yourself, Lead the Team

Pro investors know who they are, leverage their strengths, outsource their weaknesses, and know why they invest. They have a massive vision for their impact in the world, in their community, and in their families. They seek to create meaning through their investment vehicles. They serve others. True leaders don’t just create followers, they create other leaders.

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Are you operating like a professional investor?

How many of these skills do you currently have? How many of these skills do you want to master? Let’s face it, everyone is busy now-a-days. When you ask them what they’re busy with, they don’t always know. Don’t fall prey to busy-ness! Choose a skill that you’d like to sharpen. Every day, take one small step in that direction.

Remember, we all crawl before we walk.

Featured photo credit: pixabay.com via pixabay.com

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Last Updated on June 25, 2019

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

Millionaires and billionaires read more than you think. In fact, the likes of Warren Buffet are said to read 1.000 pages a day. As the old saying goes “There’s no smoke without fire”; so, start off with these 5 incredible books!

1. The 48 Laws of Power

48-laws-of-power

    “If you are unsure of a course of action, do not attempt it. Your doubts and hesitations will infect your execution. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity. Everyone admires the bold; no one honors the timid.”

    On your journey to becoming a millionaire in your 20’s, there will be many people trying to manipulate you into doing what they want. This international bestseller by Robert Greene is the widely read by those in the entertainment industry because of its dog-eat-dog environment. This book is a must-read for anybody who wants to claim power and keep it. it’s a fun read that tells the story of some of the most powerful people in history.

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    An example of a law of power is: Always say less than necessary.

    • When trying to impress, the more you say the more common you look and less in control.
    • Be vague.
    • Powerful people impress and intimidate by saying less.

    2. Influence: The Psychology of Persuasion

    influence-the-psychology-of-persuasion

      “Often we don’t realize that our attitude toward something has been influenced by the number of times we have been exposed to it in the past.”

      This book explains the core strategies people use to influence others using real world examples. Robert Cialdini’s book goes over human quirks like the need to be consistent, and how you can use that in your marketing strategy to make more money. “People’s ability to understand the factors that affect their behaviour is surprisingly poor,” Cialdini says, “which leads to people making poor decisions without realising why.”

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      Cialdini includes real world examples of why people join cults, buy certain jewellery, or give to charity.

      3. Blue Ocean Strategy

      blue-ocean-strategy

        “Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Value innovation places equal emphasis on value.”

        This book argues that leading companies don’t succeed by battling competitors in “Red Oceans”, but by creating “Blue Oceans” where they have uncontested market space to grow. It goes over case studies like “Cirque Du Soleil” who created a blue ocean by creating a circus platform that didn’t include animals or more than one act on at once but instead, decided to focus on talented performers and music who created a mystical storyline.

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        4. The Fountainhead

        the-fountainhead

          “A man’s spirit is himself. That entity which is his consciousness. To think, to feel, to judge, to act are functions of the ego.”

          The Fountainhead takes place in the United States, mostly in New York City, during the 1920s and 1930s. Billionaire Mark Cuban named his yacht “Fountainhead” after this book. This classic novel is about the struggles of an innovative architect named Howard Roark and his effort to achieve success on his own terms. Many entrepreneurs are inspired by this book because it depicts how you should be uncompromising when it comes to your vision and your goals. If you follow this way of life, you develop the ability to change the world and creating something unique.

          5. The Compound Effect

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            “Do you know how the casinos make so much money in Vegas? Because they track every table, every winner, every hour. Why do Olympic trainers get paid top dollar? Because they track every workout, every calorie, and every micronutrient for their athletes. All winners are trackers.”

            This book is by Darren Hardy the CEO of Success Magazine, he goes over how it’s the small, seemingly insignificant choices that compound to create success or failure over time. No one has a plan to be broke and fat but that’s what happens when you don’t have a plan and go along the path of least resistance. Hardy argues that you cannot improve something until you measure it and to always take 100 percent responsibility for everything that happens to you.

            So, those are five books you must read if you want to give it a try to become a millionaire in your 20’s. What are the best books you have ever read? Leave a comment and share these life-changing books with your friends to help them become successful like you.

            Featured photo credit: Bill Gates Foundation via businessinsider.com

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