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15 Characteristics of Highly SuccessfulInvestors

Are you a trader or investor? Have you ever wished you were an investment whiz kid likeWarren Buffett (http://www.investorwords.com/tips/authors/warrenbuffett/), Peter Lynch(http://www.investorwords.com/tips/authors/peterlynch/) or George Soros(http://www.investorwords.com/tips/authors/georgesoros/)? Would you give everything justto become successful as these men? What special characteristics do highly successfulinvestors possess that you don't? If someone offered to explain to you in detail the basiccharacteristics possessed by every successful investor, will you listen and learn wholeheartedly?

If your answer to the last question above is yes? Then please read on as I share with you15 characteristics possessed by successful investors such as Warren Buffett.

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"The philosophy of the rich and the poor is this: the rich invest their money andspend what is left.

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The poor spend their money and invest what is left." Rich Dad

"Do you know the only thing that gives me pleasure? It's to see my dividendscoming in." John D. Rockefeller

15 Characteristics of Highly Successful Investors

1. Highly successful investors are proactive learnersThe first characteristic of highly successful investors is that they are proactive learners.They spend more time studying than the average investors. They are also voraciousreaders. Successful investors know that their cup of knowledge must never be full so theyalways keep their minds open; ever ready to learn.

"To learn new things; you might need to unlearn old thought and tricks. Bothprocesses can never be achieved without humility." Ajaero Tony Martins

These set of investors are also willing to pay for knowledge so long it's something new.They read books, journals and magazines ranging from investing to personal development.They also attend seminars to improve themselves.

"The rich invest in time, the poor invest in money." Warren Buffett

2. They always invest with a planned exit strategy

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"Go to the mouse you foolish investor and learn. A mouse never entrusts its life toonly one hole." Ajaero Tony Martins

Successful investors know that there are always two sides to an investment. They knowthat the future is unpredictable so they prepare in advance for it. Average investors try topredict the future of their investments; they count their chickens before they are hatched.Successful investors do the opposite; they prepare for the best while still preparing for theworst.

"Always start at the end before you begin. Professional investors always have anexit strategy before they invest. Knowing your exit strategy is an importantinvestment fundamental." Rich Dad

This is the ultimate reason why successful investors make money when the market goes upand even make more money when it comes down. Do you want to be a successfulinvestor? Then plan your exit before you enter any investment.

"Many people rush into the game of investing thinking they are predators. Whenthey get to the middle of the game, they then realize they are the prey and try toescape but it will be too late. Only the preys with a well defined exit strategy willescape, the rest will be slaughtered by the real predators." Ajaero Tony Martins

3. They are patientSuccessful investors are very patient. When they make their calculations on an investment,they are prepared to wait to make sure their plan materialize. They plan to take advantageof a short term bulls market but as a back up plan, they still plan to hold on for as long as.

"I never attempt to make money on the stock market. I buy on assumption theycould close the market the next day and not reopen it for five years." WarrenBuffett

4. Highly successful investors have strong emotional controlEvery true investor knows that the market is driven by sentiment. Market surges anddeclines are mainly caused by two emotional factors; fear and greed. Average investorsinvest based on these emotions but successful investors have a stronger control over theseemotions. They don't allow the talks of investment pundits or financial advisors affect theirchoice or method of investing.

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"Every few seconds it changes, up an eighth, down an eighth. It's like playing aslot machine. I lose $20 million, I gain $20 million." Ted Turner

Successful investors also have a neutral reaction to either winning or losing. They don'tabandon their investing strategy simply because of a few failures and they don't becomeover confident when they are on the winning side. No matter the market conditions, they stillrespect the 5050 chance of winning or losing.

"To be a successful business owner and investor, you have to be emotionallyneutral to winning and losing. Winning and losing are just part of the game." Rich Dad

5. They have a well defined investing strategy

"A winning strategy must include losing." Rich Dad

Every successful investor has over time developed a well defined investing strategy thatworks and they stick to this strategy. While some successful investors implement theportfolio diversification strategy, others like Warren Buffett follow the portfolio focus strategy.

"Diversification is a protection against ignorance. It makes very little sense tothose who know what they are doing." Warren Buffet

Though I strongly believe in portfolio focus strategy, I think every investor is entitled to his orher investing style. No matter the strategy you use, just make sure you know what you aredoing.

"The wise man put all his eggs in one basket and watches the basket." AndrewCarnegie

To help you further understand some investing strategies you can adopt, below are somequestions that can help you adopt an investing style:

1. Do you diversify or focus your portfolio? While Warren Buffett strongly advocatesportfolio focus strategy, I believe there are professional investors making a kill usingthe diversification strategy. Different strokes for different folks.

2. Do you invest for short term or long term? Successful investors such as Warren Buffettinvest for long term while George Soros mainly invest for short term and still became a

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success.3. Are you investing for capital gains or cash flow? Most fund managers invest for capitalgains but successful investors like Warren Buffett invest mainly for cash flow, capitalgains may come later.

4. Are you a fundamental or technical investor? Most average investors try to be both butprofessional investors know that technical analysis and fundamental analysis(http://www.investorguide.com/article/11632/valuationmethodsusedinfundamentalanalysisofstocksigu/) may sometime contradict each other. So it's advisable youstick to one. George Soros and Sir John Templeton are examples of technicalinvestors while Warren Buffett is a fundamental investor.

"Buy when everyone else is selling and hold when everyone else is buying. This isnot merely a catchy slogan. It is the very essence of successful investments." J.Paul Getty

6. They are focused

"The men who have succeeded are men who have chosen one line and stuck toit." Andrew Carnegie

Successful investors are focused on their investment vehicle. They take it one step at atime; one investment at a time. For instance; Tim Ferris(http://www.fourhourworkweek.com/blog/) said on his blog that he would rather stick toangel investing than attempt to stock trade because he understands angel investing better.Warren Buffett is focused on stocks, Tim Ferris on angel investing, Jim Rogers oncommodities future and Donald Trump on real estate.

7. Successful investors use trend to their advantage

"Your greatest and most powerful business survival strategy is going to be thespeed at which you handle the speed of change. That speed of change is trend." Ajaero Tony Martins

Another attribute of successful investors is that they know how to use trend to theiradvantage. Average investors panic over market fluctuations but professional investorswelcome these fluctuations because it's based on these fluctuations that they make theirmoney.

Successful investors use trends such as market sentiments, political instability and

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company's crisis to their advantage.

"Look at market fluctuations as your friend rather than your enemy. Profit fromfolly rather than participate in it." Warren Buffett

8. They are persistent

"When everything seems to be going against you, remember that the airplanetakes off against the wind, not with it." Henry Ford

Sticking to your investing strategy whether you are winning or losing requires a great deal ofpersistence. Average investors lack persistence and that's why they will forever remainaverage. They jump from one strategy to another and are always looking for the next hottip.

"Most people give up just when they are about to achieve success. They quit onone yard line. They give up the at last minute of the game one foot from a winningtouch down." Henry Ross Perot

9. They thrive on risk

"Risk comes from not knowing what you are doing." Warren Buffett

Investing is a risk but not knowing what you are doing is a greater risk. Every professionalinvestor, whether on the winning or losing side still respect the 5050 probability of successor failure. A major difference between a professional investor and an average investor isthat a professional investor will always invest with a strong risk management system inplace. Have you ever heard of the word "Hedge?"

"Seek advice on risk from the wealthy who still take risks, not friends who darenothing more than a football bet." J. Paul Getty

10. Successful investors are disciplinedSuccessful investors are strict with themselves when it comes to investing. Aside theirinvesting rules and principles, they are still guided by a strong self imposed standard.Professional investors know that it takes a great deal of discipline to stick to your investing

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strategies despite distractions from self proclaimed investment pundits.

"My two rules of investing: Rule one never lose money. Rule two never forgetrule one." Warren Buffett

11. They know how to use leverage to their advantageBefore I proceed, I want to ask a question. What's the major difference between asuccessful investor such as Warren Buffett and the average investor? My answer is this; asuccessful investor knows how to make money by investing with other people's moneywhile an average investor invests with personal funds. Investing with other people's moneyis a form of leverage.

"The most important word in the world of money is cash flow. The second mostimportant word is leverage." Rich Dad

Other people's money is not the only form of leverage an investor can utilize. Your leveragecan be your professional team, your investing experience or inside information.

"Financial leverage is the advantage the rich have over the poor and middleclass." Rich Dad

"If you owe the bank $100, that's your problem. If you owe the bank $100 million,that's the bank's problem." J. Paul Getty

12. They learn quickly from their mistakes

"Even a mistake may turn out to be the one thing necessary to a worthwhileachievement." Henry Ford

When investors talk of experience, they are simply talking about the trials faced, mistakesmade, lessons learned and triumphs achieved. You can never become successful investorswithout making some miscalculations or mistakes.

Successful investors make mistakes but they are not discouraged by these mistakesbecause they know mistakes are part of the process to becoming a better investor. Averageinvestors perceive mistakes as bad but successful investors see mistakes as an opportunity

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to learn something new.

"Only those who are asleep make no mistakes." Ingvar Kamprad

13. They have a team of professional advisors

"It is better to hang out with people better than you. Pick out associates whosebehavior is better than yours and you will drift in that direction." Warren Buffett

If you observe successful investors closely, you will notice they have a team of professionaladvisors. Average investors try to beat the market alone while professional investors investas part of a team.

Successful investors also have a network of friends made of professional investors. Theyshare advice and brainstorm on investing challenges with their investor friends. Do youwant to be a successful investor? If yes, then it's time to start choosing your friendscarefully. Remember, birds of the same feathers flock together.

"I have been within the four walls of school and I have been on the street. I canconfidently tell you that the street is tougher, challenging, daring, exciting andmore rewarding. In school; you play alone. But on the street, you play with the bigboys." Ajaero Tony Martins

14. They have a strong financial background

"Business and financial intelligence are not picked up within the four walls ofschool. You pick them up on the streets. In school, you are taught how to manageother people's money. On the streets, you are taught how to make money." Ajaero Tony Martins

Just as stated in the quote above, you only become a better investor by being on thestreets. Successful investors have a solid financial foundation; a foundation molded on thestreets. On the streets, you learn from your own experience. Successful investors build uptheir financial base by attending seminars, reading books and journals, learning from amentor and listening to tapes; after which they go out on their own to gain streetexperience.

Average investors try to hone their investing skills while still striving to avoid loss.

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Successful investors on the other hand know that experience come with losing money andlearning from the loss.

15. Successful investors are passionate about the game of investing

"Men of means look at making money as a game which they love to play." J.Paul Getty

Why are you an investor? Your answer to this question will determine if you will besuccessful in the world of investing or not. A famous author once said this: "if you are goingto play a game, choose a game you can play throughout your life time and investing is oneof such game".

If you take a look at average investors, they are always after how much they are going tomake now but successful investors use delayed gratification and compounding to gain anedge.

"Wealth is only a benefit of the game of money. If you win, the money will bethere." J. Paul Getty

In conclusion, these are the 15 characteristics possessed by every successful investor. If it'syour desire to join this league of investors, all you need to do is gradually develop thesecharacters. As a final note, I want to state categorically that becoming a successful investoris within your reach. Just model the masters of the game and you will see yourselfimproving.

Author Biography

Ajaero Tony Martins is a serial entrepreneur, investor and a prolific blogger. He blogsabout his entrepreneurial experience and provides hard core business developmentstrategies on StrategicBusinessTeam.com (http://strategicbusinessteam.com/), You canalso follow him on twitter @StrategicTeam (http://twitter.com/strategicteam)

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By InvestorGuide Staff

This article was brought to you by the InvestorGuide Staff Writers and Editors(http://www.investorguide.com/article/staffwritersauthorsandeditors/).Copyrighted 2016. Content published with author's permission.

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