What it *really* takes to be a good investor

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There needs to be a delicate balance between action, and preparation.

Too much preparation leads to inaction.

Inadequate preparation leads to failure.

But action without preparation also leads to failure.

And action with too much preparation loses you time.

So how do you balance being prepared and taking action so you get the best possible results?

Well, it’s preparation.

But not just any preparation…

It’s preparation to a point.

On a scale from obliviousness to planned action, you need to be somewhere in the middle.

This “middle” is called “awareness.”

You don’t need to know everything, but you need to know some things.

And you need to know what you don’t know.

This way it’s easier to avoid mistakes out of ignorance, but also so you can focus on areas you’re comfortable in.

If you want to be an active investor, you don’t need to be an expert at picking growth companies, value companies, and dividend stocks.

You just need to understand one of those areas.

This is enough to make money.

But to do so, you must be aware that one of those categories is your forte.

And you must be aware that the other categories are not.

Only then can you focus on the investment style you're comfortable with, and save yourself money while increasing your odds of profiting.

- Wolf