Thriving in Finance Requires Patience and Humility
Caution and a deep appreciation for all you don't know are, surprisingly, key elements of success in the go-go, big-ego world of investing.
By Murray Newlands •
Opinions expressed by Entrepreneur contributors are their own.
There's a long list of skills that you must own to become an expert in any field. You need to have an extraordinary amount of experience plus a highly advanced and refined skill set that enables you to deliver positive results. This is especially true in the financial industry; a place where outstanding success can be hard to come by.
In the world of finance, success comes to those who are eager to make it to the top and willing to hone certain skills that will help them get there. These five practices are what the experts do on a daily basis that sets them apart from the rest of the pack.
Related: The Single Most Important Habit of Successful Entrepreneurs
1. They're always willing to learn. The ability and willingness to learn new information is mandatory if you want to become an expert in the finance industry. There are countless ways that you can expand your knowledge on the topic, as the state of the industry is constantly changing, and you should always be seeking that information.
The world's top financial experts make it a habit to read the latest books, go to important seminars,and listen to advice from their cotemporaries. A successful financial expert knows that they will never understand everything about the topic, but they will sure try to learn it all.
2. They limit their risks. The experts know how to limit their risk of losing money and they can do this in a variety of ways. Some of the most common ways that they limit risk is by only investing in things that won't lose them a ton of money if they flop. You often hear people say no risk, no reward. This statement is not always true.
If you risk losing your entire business, it is more than likely not worth it. That is how unsuccessful investors go bankrupt. You can limit your risk by always checking out an item or product you are investing in. Don't put your hard-earned money into a product or service until you have full knowledge of it.
3. They invest for the long run. When you see people investing in the financial market, you will see that as soon as it seems like the market is going to crash they hurry up and sell everything they have. That typically results in the person losing more than they made.
The best thing you can do in this situation is hold on for the long run. Do not panic if you see your investment failing. Take the time to wait for it to come back up to a good number. Most people don't do this, and hence are not successful. This trait is in all of the best financial investment marketers in the world and it something you should always keep in mind when you are in the business.
Related: How to Eliminate Habits Holding You Back From Success
4. They know the market. You must understand the basics of how the market works. When things happen, they happen for a reason. You can use these cues to your advantage to try to guess how it is all going to play out. You will never be able to predict the future, but most investors are very good about guessing what is likely going to happen. This is the mindset you have to adopt. While it is impossible to tell what is going to happen, you can make an educated guess and base your decisions on that. However, the only way to make an educated guess is to understand the market.
A recently published a list by inPowered called "The Experts of FinCon14," features 25 top financial experts and proves that understanding the marketplace is one of the defining characteristics of a financial expert. The "expert content" engine based their list on three criteria: proven in-depth industry knowledge, consistent sharing of thought leadership content and an established, loyal following. To be recognized as an expert, you must know the market, prove your expertise and become a thought leader.
5. They are patient. This is probably the most important, yet most frustrating thing to learn. When you first get into the business, you are going to be under the impression that you are going to be rich in a matter of weeks. When it turns out that you are not rich, you may become discouraged and give up on your investment. You cannot do this; it is the number one reason people drop out of the business.
When you make your first investment, tell yourself, "I might not be rich overnight, but I can work at becoming successful." Just take your time and be patient. Invest when the time is right and sell when you are sure that you can make a profit. When you have patience, you can and will be successful in the business of financial investment marketing.
There are a lot of people around the world who work in finance, but few can be identified as financial experts. It takes years of experience, creative thinking, and an impressive rêsumé to reach the level of "expert," but if you make sure to hone your skills through these practices, you too can become a leader in the field of finance.
Related: 6 Practices to Boost Your Chances of Success in Life and Business
