Investment impatience destroys wealth in every market while patient investors learn to build wealth on rising and dividend-paying stocks. Investors riding winners, sell the losers, and enjoy the dividends. The best investors do not act in anticipation but wait to deal with facts. That investing attitude avoids reacting to rumors and fear.
What you learn:
Don't rush to take profits, rather be a patient investor. That consistently makes more money and avoids many stock market risks and gambles. Knowing this important fact gives you one way to become a money-making superior investor. By riding winners and selling losers while enjoying dividends, investors win. They wait and deal with facts as a core investing attitude. Knowing how investors can consistently win gives you one important way superior investors act.
Frequently Asked Questions about Investment impatience destroys wealth
What do I study to become a successful investor?
Cultivate an investor mindset to become an investment success. That begins with knowing the mentality of informed, successful investors: their thoughts, emotions, and behaviors.
Use the Investor Mind article from White Top Investor as a valuable resource to develop your investor mindset. With this mindset, you lay the groundwork for acquiring investment knowledge and making informed decisions.
An investor mindset paves the way to personal growth and understanding needed to become a wealth-building investor. Find your investment success guide with more detailed information and engaging discussions in the enlightening Investor Mind article.
How do I become a successful investor?
To become a successful investor, start with the No-Worry Investor wealth-building process, which is beginner-friendly. The first step is to learn how informed investors think, feel, and act.
This knowledge is crucial in paving a clear pathway toward success in the long game of investing. Check out the cornerstone article, Investor Mind, on the White Top Investor site.
Successful investors understand the importance of patience, commitment, and education, which are the key factors that lead to phenomenal results over a lifetime of investing.
What makes someone a good investor?
Investors who succeed acquire knowledge and take action to achieve their long-term goal-oriented plans.
They start by educating themselves about markets, investments, and portfolio management. Next, once they have gained knowledge, these well-informed, self-aware, and patient risk managers research and write the unique goal-oriented plan that fits their circumstances.
Then, they do the due diligence to find and make investments that fit their plan.
By following these best investment practices, their informed investment choices produce excellent financial returns.
Why is patience important for investors?
Patient investors are more likely to make money. They take a long-term approach, avoid impulsive decisions, and observe, research, analyze, and consider investment issues before committing capital.
This patient approach gives investors more opportunities, profits, stability, and the ability to build wealth.
Once invested, they continue to monitor and review their investments. They stay with an investment decision unless there is a significant change.
Patient investors do not move prematurely or in anticipation, but with their homework done, they act swiftly to seize opportunities.
What are the habits of successful investors?
No-Worry Investors lead a successful lifestyle by incorporating learning, research, critical thinking, goal-setting plans, and taking action in their lives. These individuals are active savers and investors.
The most financially successful investors are practical, down-to-earth, and active managers of their time, finances, and lives. They follow well-researched and evolving plans to achieve their investment objectives.
Does building wealth require patience?
Building wealth requires a long-term perspective and a patient approach. Rather than a high income, building wealth requires consistent behavior and good choices.
That includes living below your means and managing expenses to maximize your savings. Diversify your investment plan with a well-researched, well-balanced, resilient long-term strategy.
The wealth-building path remains remarkably simple; spend less than you make and invest for the long term. And keep doing it for a long time.
Doing nothing can be your best choice
When riding a winning stock, doing nothing is the easiest way to make money. Early selling zaps potential wealth that could be yours. Wealthy investors are patient. They let rising stocks add more wealth.
You never go broke taking profits!
Getting rich or avoiding going broke?
“You never go broke taking profits!” That old adage often gets used to justify selling a winning position. True, selling locks in profit. However, you don’t grow rich taking early profits!
That is the point here. Following the tired old adage will get you profits now but robs you of any possible future gains. To get rich, stay with your winners. Take the full ride.
Be aware investment impatience destroys wealth
Far too frequently I have seen people selling winners and holding onto poor or losing positions.
That is backward; investment danger impatience zaps wealth
The talking heads on TV, too many advisors that “churn to earn” and traders want you to take profits on your winners. That works to put your money into their pockets.
Don’t trade when you should not. Do not sell a winner.
Traders and their facilitators generate most of the very high noise levels in markets. They also generate the majority of the revenue for the brokerage houses and exchange. In their worldview all trading is good. It certainly is good for them but could seriously slow the growth of both your portfolio and climb to wealth.
Seeking nirvana while patiently riding winners higher
Trading does work well for traders. It also works for those who serve them. We are talking about investing, not trading. When you are investing, any trade taken when you should not costs you unnecessary fees and all the potential future profit of that position.
All that market racket can make you think I must do something. Naturally, if you ask a trader what to do, “trade” will be the answer.
Adopt this basic thinking guideline: sell positions that show a loss, keep positions that show a profit.
This is not suggesting that you should never trade, hesitate to trade, or resist any suggestion to trade. Just make sure that it is in your best interest before you proceed with any trade. When appropriate do not hesitate to make a move. But when your winning investments are rising, selling is not appropriate.
Stay with your winners!
Nothing else will improve your investment performance like this simple, easy, and very profitable move. Or should I say non-move?
When it comes to managing your rising winning positions the very best thing for you to do is nothing. To grow wealthy you need to do nothing but enjoy the ride on winners.
Think this way; the market does not and can not beat you, however you can beat yourself. Develop the knowledge, think it through, act when needed and be patient with your winners.
Big money is not made by trading. It can be made by riding winners higher. Find, buy and ride those winners! And always remember the investment danger impatience zaps wealth.
Why this lesson matters
How investors buy dips matters because corrections are part of stock markets and present opportunities for sharp investors. Savvy investors need to manage dips to produce the best investing results. Knowing the three steps covered in this lesson can put money into your pockets.
Takeaways from Investment impatience destroys wealth, includes:
How investors buy dips finds three money makers in market corrections. Dips hare checkups, winners on sale and bargain buys for savvy investors.
Choices to make money work,
lesson links:
Overview of investment choices Lesson 290.01
Key investing success choices Lesson 290.02
Join exceptional wealth builders Lesson 290.03
Investing time or adviser time? Lesson 290.04
Media exposes advisor incompetence Lesson 290.05
Small investors have advantages Lesson 290.06
5 Secrets of superior investors Lesson 290.07
Avoid 6 investing sins Lesson 290.08
Investment impatience destroys wealth Lesson 305.11.
3 Yeses or no investment Lesson 290.10
Investing can be fun, interesting and slow Lesson 290.11
Warren Buffett explains gold Lesson 290.12
Stock trading halts explained Lesson 290.13
FAQ about money making investment choices Lesson 305.15.
FAQ about financial and investment advisors Lesson 310.09.
Next lesson: 3 Yeses or no investment
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Bryan
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Lesson code: 305.11.
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White Top Investor
