Business Owners Are Vulnerable To Investing Mistakes
The qualities that help you succeed in business will also make you thrive as an investor, right? Wrong.
In fact, it may be just the opposite. Qualities such as self-confidence, dedication, and drive can spell disaster in the financial markets.
Good investors are patient, disciplined, and keep their emotions from affecting investment decisions. Successful entrepreneurs, in contrast, tend to be passionate, single-minded, and willing to bet the house, often literally, to pursue their goals.
If you are a hard-driving business owner who wants to succeed at investing your hard-earned profits, realize that business and investing are two very different arenas. Your span of control is much greater in running your business. If it starts failing, you can work harder, cut costs, and drive revenue. However, you can't control the companies you invest in, and keeping the same mentality won't get you anywhere with your portfolio. Instead, you need to develop a solid financial plan, diversify your investments, and maintain a long-term perspective.
Successful business people who don't have the time or ability to change mental gears in this way may benefit from hiring a professional financial advisor. Don't worry; you can still indulge your desire to "play the market" even after you adopt a disciplined financial plan. Just set aside, in a separate trading account, an amount you can afford to lose. That way, any damage will be neatly contained.
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