How To Have Mental Toughness In Investing

People, I'm passionate about personal development and Investing as I think that anyone and I mean anyone can attain financial freedom by using these two areas. The only way I can see someone fail in investing is if they

1) Do not have the right mentors

2) Do not have the required mental toughness.

First off mentors which is real important. a mentor can get you to financial freedom far quicker in investing than not having one. For me, the best area if business in Life to have a mentor is investing. In business, a mentor can mentor you but It is you that has to always follow through. It is the same in real estate. I mean, you have to work your own business and buy your own properties. The difference is in investing mentor ship is that you are invested in the same stocks as your mentor. This is the only arena where this happens. So choosing a mentor is paramount. Check his track record and make sure he has a successful track record. You need to be looking for a mentor with at least 20% gains per annum. Look for at least a 7 year history and then you good to go.

The second subject of mental toughness is a huge problem for the rookie investor. The problem is usually their emotions. You have to control your emotions if you want to become a great investor. Let me give you an example, an investor is invested in a stock recommended by his mentor. The stock goes down in price on a weekly basis. Ultimately, the investor decided to sell not knowing what is going to happen. In this scenario, the investor has done the exact opposite of what a professional investor would do.

Professionals are always buying when amateurs are selling. You need to develop this toughness if you want to succeed in investing. Sell when you don't want to sell (Nothing goes up forever and if it appears to be going up forever, it is because it has entered a bubble and that bubble always bursts) and buy when you think its a crazy time to buy. Only professional investors for example are buying real estate now while amateurs stay on the sidelines. Why do you have to wait for a stock or commodity to go up in price in order to buy it?. As I said, professionals sell when markets go up and buy when markets go down.

If you are a buy and hold investor, a good way to control your emotions would be to switch your computer off. Do not look at your portfolio balance daily. Look, professional investors have accounts for example ranging between $10 million and $5 million every year. You always need to have a long term approach to your investing and do not be perturbed by the low numbers. This is simply cycles in action. Let compounding make you rich, ignore the wiggles, never sell out at the bottom , be sure of your stock picks and you'll get there!