It takes more than just strategies to be a successful trader or investor, but still you need to have one.

1. Decide on the kind of investor you want to be

Type One: The long term investor

Characteristics of long term investors
– Does not look at your holdings regularly (buy and hold mentality)
– Dividend driven purchases (Dividend yields as top priority)
– holdings for passive income from dividend payouts

Type Two: Trader

Characteristics of traders
– Has a watchlist of potential share counters with some volatility
– Buy low sell high strategy (with yield has target)
– Does not buy shares for dividends as main goal

Type Three: Value Investor

Characteristics of value investors
– Looks out for value purchases when fear strikes the market
– Have a min yield target (E.g. 5% net profit)
– May buy and hold if there is unrealised value

2. Watchlist and Price target setting

• Learn the basics of Technical and Fundamental Analysis
• Pick shares according to your investment/trading philosophy
• Set price targets with yield in mind for traders (Click here to calculate online)
• use an excel sheet to trade your purchases in terms of
  • Buy and Sell target price
  • Unrealised/Realised profits and Losses
  • Annual Yield target and quarterly progress

It takes quite a bit of practice to get the confidence required to buy at a low; however, it better pay your fees in paper losses or small cut losses rather than paying hundreds or thousands of dollars learning how to invest and still have no experience in it after.

3. Building Discipline for monitoring, buying and selling

I believe that the true difficulty in buying and selling shares is in the self discipline part. You will never truly be able to overcome that temptation to wait a few more days for price to climb before you sell and you will never feel the price has bottomed when you intent to buy. That is something that you can never pay others to learn. My suggestion to you guys out there is to do your due diligence, set your targets and yields and stick to it. Don’t feel that you made the wrong decision selling or buying too early or too late. Have a reasonable plan and build up your discipline over time.

Hope you guys have enjoyed yet another perspective that gives that little bit more confidence to start on your on journey of investments and trading. Click here for more info to select the stocks for your watchlist.