5 life lessons by Rani Jarkas on how to become a good investor

Here are five of life lessons that Rani Jarkas constantly reminds investors to remember when looking at their long-term future. Mr. Rani Tarek Jarkas is a highly experienced and accomplished financial services executive at Cedrus Investments, with over 20 years of international banking experience.


  1. Choose investments wisely

A good investor always chooses the investments wisely by selecting mutual fund schemes best suiting his/ her risk appetite, financial goals, and investment horizon. This assumes importance as different mutual fund schemes may be relevant for varying time horizons.


  1. Patience is a virtue

Long-term investing means that you’ve got to take the good with the bad. Markets work in cycles and will correct over time. Knee-jerk reactions during market corrections or trying to time your entry into the market are therefore futile. If your decision is to stay invested, then you simply have to ride out the dips until prices recover – as they inevitably will at some point.


  1. Don’t overthink it

It’s human nature to want to analyze problems and propositions so that you avoid making costly mistakes. This is also a natural instinct for investors, who sometimes over-analyze factors over which they have no control. According to Rani Jarkas, the only thing you can control is when you invest, and the truth is that aiming for perfect timing every time is just not reasonable.


  1. Adaptability is the key to survival

Human adaptability has been on full display over the past two years as the global pandemic has upended countless habits and practices. Practically every aspect of our lives has been touched by COVID-19, yet we have mostly managed to survive, if not thrive, despite the upheaval. The same can be said for a great number of stocks in this period.


  1. Follow a plan

Whether it’s the annual holiday or annual check-up at the doctor and dentist, I bet you know the when, why and how of these important events. The same should apply to your finances. The chance that you’ll miss your financial goals is almost certain unless you have a financial plan that guides your investment decisions.