Mastering investing skills is similar to learning how to drive a car, ride a bicycle, or even walk.
Do you remember first learned to drive a car? You braked cautiously, steered awkwardly, watched the speedometer closely, and got an adrenaline rush from merging onto the freeway.
Now you do all these tasks unconsciously with the radio blaring while talking on the cell phone and putting on make-up or shaving.
Driving changed from a conscious process requiring great effort to something you can do competently without conscious thought.
The four stages to profitable investing are no different.
Inexperienced investors make lots of mistakes because they lack sufficient skills. Each action requires conscious thought and extra effort to implement.
This is completely natural and should be expected. It’s part of the learning process. You didn’t learn to walk without stumbling, so don’t be surprised when learning how to invest includes a little stumbling also.
“If people only knew how hard I work to gain my mastery, it wouldn’t seem so wonderful at all.”– Michelangelo
As you gain experience and learn the basics, your skills will grow through each of the four stages of investing until you reach the final level: consistently profitable investing.
Below are the four stages to profitable investing so you can determine what stage you’re at now, and what you must do to reach the next stage of profitability.