7 Habits of Highly Effective Investors
Drawing inspiration from the book 7 Habits of Highly Effective People by Stephen Covey, I present to you the 7 habits of highly effective investors/traders.
1. Begin with an end in mind.
Define clear measures and a plan to achieve them.
Before you start your investment journey, be clear what is your objective and your plan.
Are you in the market for a day trade, a swing trade or are you in for a long term trade?
Are you investing for accumulate wealth, protect your wealth or in for a quick buck?
2. Do your research.
Study in depth the company that you want to invest in.
Read their financial report, 10K, quarterly report and ceo interviews.
Use various sources to do your research so that you are not overly dependent on one source.
Have a checklist to evaluate the company.
At the end of the research, you should have a thesis and you need to know why you want to own the stock. This forms your conviction,
3. Don't time the market.
No one can time the market perfectly. Time in market is better than timing the market.
4. Hold on to your winners.
Sometimes it is tempting to take profit. However, if your thesis is intact and the company continue to grow, you may be letting go a winner too early and miss a 100 bagger.
$Amazon(AMZN.US$, $Tesla(TSLA.US$ .
5. It is ok to be wrong.
We make mistakes. Sometimes it could be because we overlook an important factor or the company did not execute well. When the thesis is wrong, it is ok to admit mistake, sell the stock and move on. This would be better than holding on to them and lose opportunity cost. Capital is precious.
6. Remove emotions
Emotions can cause you to make wrong decisions. I still remember how scary it was in March 2020 when I saw the stock market tumble and my portfolio lost 30% value in a short time. Thank God that i stuck to my research and did not panic sell.
The flip side of panic sell is fear of missing out. Remember early this year when many jumped into $GameStop(GME.US$o $GameStop(GME.US$ due to FOMO?
7. Sharpen the saw
Continuous improvement is important in the investment journey.
To have continuous improvement, it is important that we have enough rest physically and mentally. Devise your plan to rest and relax. It can be exercise, meditation, cycling etc or simply spending time in the nature. It also help to make social and meaningful connection with a like minded community such as @Investing with moomoo @moo_Earnings, @HopeAlways, @Mars Mooo and learning from them.
Research said that a habit takes 21 days to form. So for good habit, it is worth to start now!
1. Begin with an end in mind.
Define clear measures and a plan to achieve them.
Before you start your investment journey, be clear what is your objective and your plan.
Are you in the market for a day trade, a swing trade or are you in for a long term trade?
Are you investing for accumulate wealth, protect your wealth or in for a quick buck?
2. Do your research.
Study in depth the company that you want to invest in.
Read their financial report, 10K, quarterly report and ceo interviews.
Use various sources to do your research so that you are not overly dependent on one source.
Have a checklist to evaluate the company.
At the end of the research, you should have a thesis and you need to know why you want to own the stock. This forms your conviction,
3. Don't time the market.
No one can time the market perfectly. Time in market is better than timing the market.
4. Hold on to your winners.
Sometimes it is tempting to take profit. However, if your thesis is intact and the company continue to grow, you may be letting go a winner too early and miss a 100 bagger.
$Amazon(AMZN.US$, $Tesla(TSLA.US$ .
5. It is ok to be wrong.
We make mistakes. Sometimes it could be because we overlook an important factor or the company did not execute well. When the thesis is wrong, it is ok to admit mistake, sell the stock and move on. This would be better than holding on to them and lose opportunity cost. Capital is precious.
6. Remove emotions
Emotions can cause you to make wrong decisions. I still remember how scary it was in March 2020 when I saw the stock market tumble and my portfolio lost 30% value in a short time. Thank God that i stuck to my research and did not panic sell.
The flip side of panic sell is fear of missing out. Remember early this year when many jumped into $GameStop(GME.US$o $GameStop(GME.US$ due to FOMO?
7. Sharpen the saw
Continuous improvement is important in the investment journey.
To have continuous improvement, it is important that we have enough rest physically and mentally. Devise your plan to rest and relax. It can be exercise, meditation, cycling etc or simply spending time in the nature. It also help to make social and meaningful connection with a like minded community such as @Investing with moomoo @moo_Earnings, @HopeAlways, @Mars Mooo and learning from them.
Research said that a habit takes 21 days to form. So for good habit, it is worth to start now!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Mars Mooo :
Mars Mooo : Thank you, Panda2102.
I am thankful for having you around as I learn quite a lot of you too.
Mooers, please make it a habit to explore MooMoo apps as it contains many useful information that can help you in your trading.
https://www.moomoo.com/community/feed/107347284131846
Panda2102OP Mars Mooo: Thank u. May the market be with us
Mars Mooo Panda2102OP: