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How to become seasoned investor?


Many beginners in investing dream about getting rich and becoming a seasoned investors. It is not an easy task but it is not impossible. If you are serious about investing the first thing you need to do is stop dreaming about becoming rich and successful overnight. You probably heard it many times but that's because it true- patience is the key. You will have to learn how to think long term and not make hasty decisions that you will regret later.

Another thing that you have to do before you start is to get to know yourself - what is your goal, what motivates you and also very important your fears and limitations. Knowing what you want will help you devise an investing plan and stick to it as well as knowing your limitation. So far it is a good start but it is not enough because you will have to educate yourself continually about investing, but don't let your lack of knowledge hold you back. Stock market is ever changing and learning about it is a lifelong journey so if you wait to long to act there is a chance that you will miss out. If your goals change with time you  can use what you have learned and adapt your strategy.

According to Gallup, young American, under 35 years old are investing less in stocks which is a result of lost confidence in market after financial crisis. Older investors that have been in the game for quite some time are investing more. But the thing is, market is unpredictable  and even as market is moving up downturns happen.  Understanding market history will help you manage your expectations. Always be prepared for worst case scenario and loss. The best way to do it is to do your research and be aware how  much risk you are able to bear. Due diligence when done properly will give you a good reason to (not) invest and hold your position for a long time. The worst thing you can do when things go opposite of expected is to get scared and make wrong decisions. As a seasoned investor you need to have bigger picture always. Don't just think about potential return on investment but also the risk, cost of investment, taxes and why are you investing in particular stock or bonds.

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