We’ve all read the amazing success stories of investors like Warren Buffett and Donald Trump. Part of their cult-like following is the knack they have to reach us through their sayings. So we have gems like “Only when the tide goes out do you discover who’s been swimming naked” (Warren Buffett) and “As long as you’re going to be thinking, think big” (Donald Trump).

Have you ever wondered about the mindset needed to become a successful investor? I have, many times, and I confess to gaining lots of inspiration, and valuable learning, from reading about these legends. So I thought it would be interesting to share some of the tips we’ve picked up along the way, and that would apply as much to you and me as to the investment greats.

Don’t be a backseat driver.

No one is going to take the wheel and drive you to a successful destination. You need to take responsibility for your own destiny, and be prepared to take action to achieve it. Everything that happens is a reaction to the actions you take. It’s like cause and effect. So be prepared to take the wheel, to be the driver, and to be the path finder. There are plenty of road signs along the way to guide you. Ask yourself the question, “On my road of life, do I want to be the driver, or a passenger?” And take your seat from there.

Stand by your decisions

Experienced investors devote a lot of time to analysing their options and working out the best course of action. When they have done that, and when they have a good ‘feel’ for what is right, they act decisively and make their move. Many first-time investors suffer from what I call, “Buyer’s remorse”, where they immediately start questioning their move, and worry whether it was the right one. The best advice is we need to invest and move on, and believe in what you have done. Even if someone does question your decision, that someone shouldn’t be you.

Don’t let fear stop you

Have the mindset to see a half-glass as it is, in other words, half full. When an opportunity comes your way, when you have done all your research, and it looks and feels right, don’t allow yourself to get paralysed by fear and lapse into inaction. Many fears are irrational, and by listening to them you risk letting the opportunity slip through your fingers. Think about each fear, and work out where it’s coming from. In most cases it’s simply your inner mind trying to prevent you from stepping out of your comfort zone. All investors feel nervous at some point or other. However, they don’t let fear block their path.

Create your own support network

Negative people spend a lot of time and energy trying to bring people down to their level. If you surround yourself with optimistic people, then you are more likely to remain optimistic yourself. Make sure that you build a support network that will support you, and strengthen your resolve and belief in yourself and the course of action you are taking. You don’t need people who undermine you and drain your self-confidence.

Be open to investment tools

Successful investors think differently to normal people. They don’t shy away from debt, for example, and instead they use the leverage it gives them to create more wealth. Have you ever wondered why some people think just the opposite? About how debt is bad, and that you must save up the cash for things that you want to buy? If investors waited for that, they would never get anywhere. Leverage and the miracle of compounding are valuable tools in their investor toolbox, and they use them wisely to achieve major gains. You can too.

To elevate yourself to the level of a successful investor all you need to do is adopt their mindset. Don’t get bogged down in fear and self-doubt. Think like a successful investor, and you are sure to become one.

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