The key trait for investing success

My friends, if you want to know what is the key trait for investing success, well according to many successful investors, the answer is persistence. Many of us think that it is the investments that play a big role in determining whether we make alot of money or not, however, the contrary is even more true, that is we play a bigger role in determining whether we make money in the stock market or not.

It is so important for us to keep our discipline, and remain focused throughout our investing period. If you take a good look at many professional investors out there, they are very disciplined and focused and thats a big reason why they are so successful. They remain true to their strategy and stick to it. Often, sticking to your strategy means you will be out of the crowd, talked down and left alone. However, we must do that in order to succeed. It is easier said than done, because in times of real trouble, the circumstances will tell what kind of person we are. We would have to work hard to build up discipline in ourselves.

The one way we can lose fast money in a stockmarket if a slight change in the market, maybe a drop of 100 points, can alter our perception towards a stock and make us all suddenly sellers instead of buyers. Ask youself, what would you do when the market drops 100 points(which is relatively huge!) in one day?

Persistence, persistence, persistence. During the 1998-2000 tech boom, many tech stocks were overheated and shooted to the skies. Their PE was up till 500. It was crazy, and people were valuing tech stocks that weren't even making any earnings at all worth more than a company with solid earnings. The true value investors stuck to their guns, and because of that they got discriminated against saying things like "you are a goner", "you just don't get it, this is the new way of investing", "its not too late to change mate". In the end, the crowd was proved wrong, yet again, and those value investors who were just earning a meagre 6-8% return per annum were heroes. Many people lost their fortunes overnight, with declines of more than a 100%.

Determine what kind of investor you are. Stick to your method, even if it means doing the same thing for 20 years. God allow, you will shine in the end.