May 11, 2011 | In: Opinion

Top 10 Qualities of a Stock Investor

Stock investors are often regarded as self-centered, ego maniacs, couldn’t care less about the world individuals. While some of them are like this, most are not. All the stock investors I know are humble, funny, and confident people. Stock investors are smart, they jump at opportunities (after doing a due diligence on a stock), they believe that losing is part of the game, and most importantly they love what they do. They find that their work is fun, and, regardless what everyone says, they don’t think that they hurt anyone in the process.

Again, the stock investors I’m talking about do not represent everyone, but they do represent the good stock investors. So what are the top qualities of a good stock investor?

In my opinion, every successful stock investor possesses the following qualities:

  • He is patient: A successful stock investor doesn’t sell stocks when they go down, and doesn’t buy stocks when they go up. Instead, he waits for the right and calculated opportunity, and then he jumps in. If one of his stocks go down, he waits until it goes up to sell it. The question is, how can this investor not sell at a loss when everyone else is selling… This is because (read the point below)…

  • He has faith: A successful stock investor has faith in his decisions, when he buys, when he sells, and when he holds a stock. That’s why he is little affected by the stock market “chit chat” and by all the rumors. He knows he did his homework before buying a stock, so he doesn’t need to worry. What even makes his faith in his decisions stronger is that because… (read the point below)

  • He is confident: A stock investor has a confident personality. He doesn’t have a lot of insecurities, he knows what he wants (usually money), and he’s after it at all times. He isn’t shaken by somebody else’s opinion about him, or about the way he trades, that’s because… (read the point below)

  • He is consistent: A successful stock investor follows a consistent and disciplined trading approach. He only improves his trading practices, but never alters them. Consistency and discipline are both key attributes to very successful stock investors. On the other hand, since a stock trader wants to constantly improve his trading practices… (read the point below)

  • He is willing to learn: The will to learn is a characteristic that generally differentiates successful from non-successful people. A stock investor who is willing to learn will jump from success to success, but he must ensure at all times that… (read the point below)

  • He is humble: A great stock investor must be humble, he must be open to constructive criticism, he must listen to others, even those who don’t have the trading experience that he has, he must also help others because he knows that there’s plenty of money for everyone and because…. (read the point below)

  • He is not greedy: Greed is not the essence of the evolutionary spirit, greed does not work, greed is not right. In fact, greed will make even the most successful trade a loss. Here’s how: A stock investor buys a stock at $20, the stock goes up to $25 in a couple of days (a 25% increase), the investor, because he is greedy, wants more. The stock goes down $7 in a couple of days, and it’ll take ages before regaining that $20 level. A stock investor is not greedy, he sells when he feels he made enough money on the trade, and the definition of “enough” should be conservative. 2% is good, 5% is great, 10% is very risky! But then again, a stock investor knows that… (read the point below)

  • He is courageous: A stock investor shouldn’t weaken when the market weakens, he shouldn’t panic when two weeks of “red” pass by, he shouldn’t feel terrified (and maybe permanently leave the market) when he logs in to his account and he sees that he lost half of his portfolio, that’s because… (read the point below)

  • He is not emotional: It is very hard for anyone to feel nothing about his money, which he associates with happiness, love, stability, and prosperity… A stock investor shouldn’t be emotional about his money, he should feel absolutely nothing about it, and he’s only able to do this because he trades with risk money, money that he doesn’t need, that’s why there are thousands who enter the market every day, and thousands who leave the market every day: they trade with money that they need. They think that playing the stock market will work when they need the money (while ironically, it only works when they don’t need the money), in fact, every successful investor is successful because… (read the point below)

  • He is wealthy: If you look at the people who make good money on the stock market, you will notice that all of them don’t need the money in the first place, they’re already wealthy anyway, and that’s probably the key characteristic that they very best stock investors have!

1 Response to Top 10 Qualities of a Stock Investor


How Much Money Can You Make With Stocks? « Fadi El-Eter

November 1st, 2011 at 2:37 pm

[…] So, again, you can make a lot of money with stock trading, but remember, to make a lot of money, you need to take stock trading seriously (e.g. trade every day and not treat it as a hobby), and also need to possess the qualities of a good stock investor. […]

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