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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 January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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