Five keys to being a good investor these pros know for sure to be true

Do-it-yourself investors should follow these basic tenets to make money and avoid losses.File Photo

After six years running 5i Research, it’s clear now that we enjoy helping individual investors much more than we enjoyed managing mutual/hedge funds in our prior career. While it is of course great when we can help a do-it-yourself investor make some money, we enjoy it just as much if we can help someone avoid losses.

Many times, our investors have asked us what the key is to being a good investor. There are lots, of course, but let’s focus on five facts that we know for sure to be true:

Be an optimist

Sure, there are lots of naysayers out there in the world, predicting doom and gloom. But we have met very few rich short sellers. Over time, markets rise. If you are an optimist and can see the bright side of things, you are far more likely to be a successful investor. That stock that has doubled? Optimists think it can double again. Pessimists don’t see the upside and sell too early. Guess who does better longer term?

Leave a Reply

Your email address will not be published. Required fields are marked *