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.
Critical Thinking
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.
Proactive Learning
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.
