“You have to learn to be an investor if you want to become wealthy.” – Warren Buffet
This quote by Warren Buffet has encouraged many people to do investment. In this era, not only financial practitioners but housewives and students also do this activity. People are getting realized that investment is a good thing to do to increase their wealth from other sources of income. Rather than let their money stay on the bank and gain the interest from the deposit, they can allocate some of it into investment. This investment is expected to give additional income in the future by diversifying our wealth, not putting all in one place. So, what are the important needs when we do investment?
From my experience, we need to have courage and confidence when doing an investment. Why? A few years ago, I learnt about virtual trading. Although it was not real money, but I only played safely, buying the only best performance of stock and being risk-averse. This action gave a bad result. While other teams could achieve a higher return, my team only gained a little. This event taught me that we need the courage to challenge the opportunities if we want to get more. If we only stay still and not brave enough to take the challenge then you could not gain much.
What is about the confidence? Being confident means that we do not think too much after we decide something. Believe that what we have chosen is the best at the time. Market has always moving and decision can change every time. If we overthink then we will only get a headache and stressed by the situation. Do not scared and be confident. Market has changing and it is not a bad thing. So, do not get pressured by it.
Where can we get the courage and the confidence? They come when we have the knowledge about the things that we do, for instance, the information about the market and the stock itself. When we know what we need to know, the courage and confidence will come. So, read and learn a lot. What market happened, what event will happen in the future and its effect, how the performance of each sector does, how we understand past performance and what it indicates for the future. Learn those things and you will have what you need. Another favorable thing is an experience. So, do not be scared and start as soon as possible.