Fit Your Personality to the Stock Market
The threshold question to ponder before you decide to invest in the stock market is whether or not you are the investor type. For some people the stock market may not be suited to their personality. This article addresses some of the qualities an investor should have in order to make a reasonable return in the stock market.
Sure, there are folk tales you may hear about the guy who bought XYZ Company stock for $5 and sold it 60 days later for $50 a share. This scenario probably has happened , but it is not the reality of being an investor. The following points should be considered when you are considering becoming an investor.
Are you self-disciplined in your thinking?
The first step anyone must take into account is their own personality. Are you objectively a person who is organized in your thinking? Do you know how much money you have to invest? Do you know how to set objectives in your finances? Have you set goals for savings and followed through on those objectives? An investor has to have a clear set of objectives in their choice of investments. Is the amount of money you intend to invest a one time wind fall? Are you able to set aside a certain amount of money each month to investing that is disposable income?
In effect what you will be doing is moving some of your pass book savings to an investment. Patterns development in peoples lives. Are you able to transfer your savings pattern to include a regular investment in the stock market? If you are currently earning a small percentage on your pass book savings account what rate of return would you be satisfied in receiving? The key to investing is to know your expenses and income and decide how much money is disposable income. It is this excess that will be your investment dollars.
Are you able to set goals and listen to good advise?
Once you have determined that investing may be a possible avenue for you to consider the next step is setting goals. A goal is the objective of your investment. It could be for retirement, a vacation home, a rainy day fund or a new boat. Whatever your is determines the type of investing you will be looking for in your research.
If it is a long term goal like retirement you may seek a tax exempt municipal bond fund or a mutual fund with certain characteristics. If you want liquidity like a pass book savings account where you can draw money as you need it there are some investments that may fit. The important aspect of this step is to know your objectives and then draw up a budget or a plan.
All of the major fund companies have managers and consultants. Are you able to set forth your objectives and ask for advice in picking out a fund that will fit your needs? This does not mean you need to sign up for the first consultant who takes your call. It means can you listen to advice and make a decision on various alternatives offered to you.
After you have gathered all the information you believe is necessary for your decision can you apply your personal goals with the information presented and make a final decision?
This may seem like an odd inquiry, can you make a final decision? Unfortunately, some people will feel quite comfortable going to a car show room and purchase a $30,000 automobile. The color, impression, and internal motivators. But when it comes to investing, the buy is not as dazzling. It takes consideration to commit $30,000 to an investment in paper form even though you may be purchasing stock in the flashy car company.
Can You Let Go?
The final and perhaps most important aspect of deciding if you are a stock investor is, YOU. After you have gone through all of the self analysis, goals, research and advice of others and made your final decision the next step is critical. Do you have the personality to allow your investment to take its course? Can you sleep at night? Unless you are a day trader who plays the upside and downside of the stock market and I would not recommend this to anyone starting out.
You have to be able to roll with the punches. Trust your instincts and review your investment on a monthly or quarterly basis. If you buy individual stocks, place a limit order on the account. A limit order allows your broker or on-line account to sell if the price goes down.
The mutual fund investment works differently that buying individual stocks. If you are satisfied that your choice of a fund met all of your criteria for investing let it alone and review it only periodically. If your mutual fund for any reason meets with unexpected long term problems you can change funds. I would review the fund on a quarterly basis and discuss this with the fund account manager or representative.
This is the investor personality that you need to have in order to have a lifetime of success in the stock market. If you have it, it works. If you don’t, try another type of investment.
Terry Detty
http://www.articlesbase.com/day-trading-articles/fit-your-personality-to-the-stock-market-714207.html
Filed under: Stock Investing
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What's the best career choice for a person who loves analyzing things?
I spend the majority of my free time exploring new subjects and then "beating the life out of it" for the next 2 years or so. The strangest part is that the subjects I’ve enjoyed exploring have never fit one neat category.
For example, the last 6 months or so I’ve been reading about the stock market. I’ve been absolutely fasinated by it. But consider these other things I’ve enjoyed studying for quite a length of time:
1) Walt Whitman’s poetry
2) The military campaigns of Erwin Rommel
3) Computer game development
4) The theology of C.S. Lewis
I’m nervous about picking just one "field of study" for my career since I know my interests are so numerous and not even remotely interrelated. The only common denominator among these interests are my fascination in exploring theories, explanations, and creative processes.
I’ve read many career books (What Color is your Parachute) and have taken many, many personality tests (Myerrs-Briggs). Still need more help. Thanks!
quality control any where
References :
You should become an intelligence analyst. Almost every large US agency has one. http://www.intelligence.gov/3-career_analysis.shtml There are economic intel analysts, political intel analysts, military intel analysts, transportation, law enforcement, drug, and many other types of intel analysts. The downside is you can’t really talk about your work with anyone outside the community, and it isn’t nearly as glamorous as TV would have you believe, but it can be tons of fun.
Oh, and you may want to look at becoming an economist. Read Stephen Levitts "Freakonomics" or "The undercover economist"
References :
http://www.intelligence.gov/3-career_analysis.shtml
Poetry, military, theology, and technology all have many things in common. They all follow very rigid rules. The rules are very complex and often abstract. The end-results are demonstrable, though not always quantifiable. [For instance, in theology, an argument or belief may (or may not) become part of the religion's doctrine and the inclusion (or exclusion) can be justified logically and/or on religious grounds.] The main thing they all have in common is that in each case there is not simply a single set of rules but multiple sets of rules that can be modified to "fit" real-life situations to bring about a pre-determined result.
What you are into, really, is not analysis but the ability to change and transform a person, situation, object, or event, by modifying and applying a fixed set of rules (or a combination of sets of rules) to achieve a result that you, personally, find satisfying, in some way, shape, or form. Clearly, tactile and kinesthetic learning is not your strength. Nor do you learn by watching or listening. You learn, primarily, by thinking and predicting. You would do well as a psychologist, a stock-market analyst, a security consultant, or a marketing consultant. Basically, you will do well in a career where you can get data, think about it, and make predictions that will either come true because of the logic of the data or because you can advise people to move in a certain direction to get the desired result.
References :
What about compaines that rely on predicting trends? Also the FBI is always looking data and trends.
What about writing book for niche markets: If you can gather infomation and show how niche markets can use and profit from it you can make big money.
First find one subject your love:
Second find the people who will pay to have that infromation
And three be the expert…so they have to have you!
References :