We’ve covered a wide range of subjects about investing and trading here on Master and Student. While the best tips and resources can help you succeed more as an investor, there are still some basic, important skills that you must have in order to stay ahead of the market. Having these key skills will not only make you a better investor, but also help you cope with market challenges in any circumstances. What are the key traits every good investor must have?
Cover Both Sides
For many beginner investors, making the decision to enter the market is a lot easier than deciding when to exit. In reality, however, having a good exit strategy is often more important than knowing when to invest. You need to know exactly what to do under different situations in order to stay successful.
The market can either go your way or turn against you; no matter how well you’ve calculated everything, there is still a possibility that one of these two outcomes may happen. You need to plan your exit before entering the market and anticipate both possibilities. Let’s say you’re trading EURUSD and the market turns due to unexpected news. You can either remain in your trade, take active steps to manage your risks or decide to pull out at the right moment. Depending on the amount of margin you have and other crucial factors, the right decision can turn what would be a loss into a profitable trade.
There are a lot of data that needs to be analyzed before you can make wise, calculated investment decisions. A lot of independent investors are actually going back to school, taking advantage of programs from reputable universities such as Brandeis University to further strengthen their critical thinking and analytics abilities.
There are some interesting programs to take, too. The online MSMPP program, while mainly designed to help you become a better project manager, can help you master essential skills that will turn you into a good leader and decision maker. The project and program management degree also comes with a series of knowledge and skills that will make managing trades and investments a lot easier.
Going back to school is not a bad idea if you’re an active investor, because the third trait every good investor must have is proactive learning. Yes, having the eagerness and ability to learn a must. The market is changing rapidly and you need to be able to understand the changes that are happening to fully understand what’s going on. The only way you can do that is by learning more about the governing aspects, as well as other details about the investment opportunities you’re approaching. The same can be said for strategies and tactics. Investing in new instruments requires a lot of learning. You also need to learn from your past investments, especially the mistakes you’ve made in previous trades. Actively learning new things, along with the ability to think outside the box and to cover both sides, will make you an even better investor.