Education Of Stock Investment - Law of Preparation

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Leadership is sensitive and categorical. You are either one, a leader or not. That's one of the beauties in being able to relate the theme to investing. In investing you are very clear and unambiguous. You are either making money or losing it. If you think your investment is at a stand still and you factor time into the equation, you will discover that you are rather retrogressing.

It is proven that followers need leaders who are able to effectively chart a course for them. When they are facing life and death situations, the necessity becomes painfully obvious. The truth is that nearly anyone can steer the ship, it only takes some energy, but it takes a leader to chart the course. You and I know that any dummy can propose to invest in stocks but it takes more than a dummy to consistently make profitable investments.

Quoting Jack Welch, the former chairman of General Electric; 'A good leader remains focused; controling your direction is better than being controlled by it'. In life, you either take what life itself delivers to you or you demand what you want from it.

You can choose to be tossed around by every wind while you can also decide to follow only the direction you wish to go. I know of some people who have decided to invest their savings and leaving it to chance, believing that you are bound to win some and lose others. I can also tell you of people who have chosen to be what I can sophisticated investors; neither giving room to any loss and combating every setback fiercely. It's all about what you see and what you plan towards. Leaders who adopt this law do more than control the direction in which they travel; they make others travel the same path.

The true leader is the man who sees more than others see; who see farther than others see, and who sees before others do. That's why as a great investor, you should see beyond the present state of a market. You should understand the signs of the seasons in the market bull or bear. That is leadership. It is not isolated to any field, the laws are universally applicable. Every past success and failure can be a source of information and wisdom, if you allow it to be. Successes teach you about yourself and what you are capable of doing with your particular gifts and talents. Failure shows what kind of wrong assumptions you've made and where your methods are flawed. If you fail to learn from your mistakes, you're going to fail again and again. That's why effective preparation starts with experience. But they certainly don't end there. No matter how much you learn from the past, it will never tell you all you need to know for the present. Leaders in the real sense gather information from many sources. They get ideas from members of their circle of activity and beyond. They talk to people in their organisation or activity group to find out what's happening at every level. And they spend time with leaders from outside the organisation who can mentor them. Being able to navigate for others require a leader to posses a positive attitude. You've got to have faith that you can take your people all the way. If you can't confidently make the trip in your mind, you're not going to be able to take it in real life. On the other hand, you also have to be able to see the facts realistically. You can't minimise obstacles or rationalise your challenges. If you don't go in with your eyes wide open, you are going to get blindsided. Realistic leaders are objective enough to minimise illusions. They understand that self-deception can cost them their vision. Sometimes it's difficult balancing optimism and realism, intuition and planning, faith and fact. But that's what it takes to be effective as a great leader of all times.

Major barriers to successful planning are fear of change, ignorance, uncertainty about the future and lack of imagination. John maxwell sums up this principle with the phrase 'PLAN AHEAD'. When you fail to plan ahead, you have planned to fail.

These could help you in preparing not only to be a leader but also to be a good investor. 

  • Predetermine a course of action. 
  • Lay out your goals. 
  • Adjust your priorities. 
  • Notify key personnel for help. 
  • Allow time to succeed. 
  • Head for action. 
  • Expect obstacles and problems. 
  • Always point towards the successes. 
  • Diligently review your plans.
Remember the secret of this law of preparation is to work towards it. It's not the size of the project that determines it's acceptance, support and success, it's the size of the leader. It's not the size of your funds that determines your investment success, it's your preparation to be successful.

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