10 prerequisites for investing success

Here are 10 prerequisites that I believe are important:

  1. Love what you do.  Passion matters – nurture it and feed your inspirations.
  2. Repeat your successes.  Purge your failures.  Make the effort to understand both intimately.
  3. Embrace change.  No, I mean truly expect change, be open to it and figure out how to use it to your benefit.
  4. Market bubbles happen – accept their profits with a sense of wonder, gratitude and tight stops.
  5. Show up – be prepared organizationally, physically and emotionally to trade.
  6. Ethics matter – always more than money.  A good night’s sleep matters, too.  Never ever let yourself get close to the line.
  7. Be honest with yourself.  Be kind to others.  The two skills are related.
  8. Formulate your thesis.  Reach out and listen to both bullish and bearish commentaries.  Listen for their perspective and reasoning to help challenge your own thinking, but then decide for yourself.
  9. Accept praise for profits.  Accept responsibility for losses, but then move on.
  10. History has shown me that it rewards the bulls with a much higher frequency than it rewards the bears.  Plus, it feels better to be optimistic and positive.
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