INVESTMENT 101 – The 4 Phases to becoming a Successful Investor

Most people want to make a fortune from the stock market but only a few are willing to go through what I call the 4 phases to becoming a Successful (and rich) Investor.

So what are the 4 phases?
The faster you understand and go through these phases, the faster you will see yourself become a successful investor.
1) Believing
The 1st first is to believe that it is possible to make profits from the stock market. When I was studying in school, my teacher told me that “Most People Cannot Beat the Market”. This made me believe that I am not able to do it.
It took me a couple of years before i met a friend who showed me that it was possible and that made me believe that it can be done.
My teacher was not wrong, “Most People” still cannot beat the market, and the reason is because most people did not complete the 4 phases. In fact, most people did not even go through the 2nd phase, which is Educating or Learning.
2) Educating
I was shocked to realise that most people in the stock market do not understand how it works. But this is actually a paradox, because if most people knows how the stock market work, it wouldn’t work the way it does.
The market is irrational and that is because most people in the stock market is irrational. The reason is because most people did not educate themselves to look at the stock market as it really is – a market that sells Business Ownership. Most people (including myself in the past), look at the market for patterns and trends and tried to “feel” its pulse. The fact is that many people tried to do that, but only few are consistently successful. Those successful ones claim to have a system, but interestingly, these systems do not seem duplicable. I am speaking from my own experience because i bought into many of the systems and found that the results had many assumptions and variables. Anyway, there are still some who are successful and that cannot be denied. But for one to be educated in a manner that is duplicable, i.e. produce equallu successful results, i found that the way is really to look at the market for what it is – a market for Business Ownership. Once you understand this and learn how to buy great businesses, your world of investing change permanently.
3) Practicing
I know some people who read great investing books and feel that they have become better investors. But did they? You only learn when you put what you learn into practice. Otherwise, it is only “head” knowledge. You should know by now that if learning and reading alone can make you a great investor, most PhDs will be multi millionaires, but in the end, it is those who take the most action (based on the right education), who receives results.
You got to keep at it. When i started practicing what i learnt, i sweated it out when i see my stocks
prices going up and down. My head told me that the value of my business is not affected by the price, but my heart did not listen.
This gave me some sleepless nights, until i reached the 4th stage…
4) Internalizing
This is the stage where i gain a sense of certainty. I realise that in the world of business, nothing is really certain and there is no “perfect” businesses, but there are plenty of great businesses. Thus, i just settle on buying great businesses that have done well for years and then i live on with my life while the business continues to do what it does – making the shareholder (me), rich and profitable in the process. I sleep well at night and receive my rewards for going through the 4 phases.
In our free workshop, we start our participants on the 4 phases and help them go through a condensed experience to reach stage 4 in a short time.

 

Click HERE to book a Free Investing Workshop.

To your dreams,

Mind Kinesis Research Team

Master Trainer (Value Investing Options Strategy)
Investment in Stocks Blog
Value Investing Academy – the Warren Buffett Way

https://www.investment-in-stocks.com, http://www.nlpinsingapore.com

If you enjoyed this post, make sure you subscribe to my RSS feed!