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Weekend Edition – Perfection is Not Required

By Dividend.com May 20, 2012, 08:15:28 AM EDT

I follow many of today's biggest movers and shakers in investing, finance, and business worlds, and even those in the social media/start-up arena. These folks have had great success in their careers, and some are willing to share anecdotes about their past failures they've learned from.

Most people, however, aren't willing to admit the own mistakes. This fact holds many folks back from achieving their true potential.

At Dividend.com, we're not shy about admitting the occasional misstep. For example, we downgraded Wal-Mart ( WMT ) from our Best Dividend Stocks List back when the stock was approaching the mid-$50â€ēs. We even suggested investors consider ringing the register on the stock altogether. Well, guess what? The stock is over $60 now.

This stuff is simply going to happen when you cover the markets. Not every call will be perfect, but we rest easy knowing that 1) most of our recommendations have done extremely well, and 2) our cautious, calculated, long-term approach will reward subscribers in the long run.

The fact is, everyone makes mistakes from time to time. Even those most successful investors in history have made a few bad investments. This concept applies to every profession, in fact. We'd all like to think of medical surgeons as being perfect, but no human being can make that claim. For example, one of my best friends was recently diagnosed with blockage in one of his arteries. During surgery, his doctor realized it was not blockage, but he in fact had a couple of smaller arteries than is usually the normal size. He simply drank some highly-caffeinated coffee that triggered what doctors originally thought to be a mild heart attack. Fortunately, however, he is fine and no complications arose from being opened up.

You see, mistakes are inevitable in life. In fact, you are likely better off dealing with someone who has made a mistake or two along the way. Remember: sometimes we learn much more from our mess-ups than from our successes.

Dividend Investors Never Get Rattled

Back in my days as a full-time trader, I remember several days of bad trades that cost me large sums of money. My kids were very small back then, and thankfully they'd help snap me out of the funk I'd enter during those dark periods.

Losing days were bad days, but fortunately they weren't a common occurrence. Despite knowing capital was lost, I knew that if I stuck to my discipline I would be able to bounce back. Following years of trading however, it became clear that my ambition was to go beyond trading for a living.

Everyone has their good and bad times throughout the course of their career. It's how we react to the bad times that determines if the train will come off the tracks completely. In football, they often refer to a quarterback getting "rattled" after an interception or fumble. Elite players, on the other hand, are able to gather themselves quickly and get back down to work without missing a beat.

In dividend investing, bad plays really aren't much of a factor - unless of course you get sucked into buying deep "value" plays in hopes of a turnaround. We tend to stay away from reclamation projects for the most part here on Dividend.com. We focus instead on strong stocks that have periodic healthy pullbacks throughout the course of a year. As you look ahead and push forward on your plan to build wealth, take comfort in the fact that your road is clear of any "do or die" moments. The day-to-date market action really melts away when you focus on the long term. Isn't dividend investing great?

Go Beyond This Newsletter

We know many of you enjoy reading the daily newsletter, but remember that with our Dividend.com Premium service, the newsletter is just one small component of what we offer. Here are the "Big Three" benefits of our Premium service:

- The Best Dividend Stocks List is used by tens of thousands of investors to help build their own portfolios.

- Creating your own Watchlist allows you to track the performance, news, and upcoming dividend payouts of the particular stocks you care about.

- Finally, we offer the most complete and easy-to-use dividend data on the web. Many subscribers use this data as part of a "Dividend Capture" trading strategy, but long-term investors can use it to keep track of impending payouts. Just visit our Ex-Dividend Calendar for a complete outlook on which companies will be paying out soon.

We don't ask for a credit card to use our free trial, and we don't bill you when your trial ends. No obligation whatsoever! So keep enjoying the newsletter, but please give Dividend.com Premium a shot if you haven't already subscribed!

An Important Note Regarding the Best Dividend Stocks List

We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. If and when a stock is removed from the list, we will clearly state whether the stock should be sold (which is rare but occasionally will happen), or simply held in one's account until we see a better entry point or catalyst.

And here's one last thing to remember about what we do here at Dividend.com. It's not just the names that we recommend that can help you build wealth, but also the things we try to steer you away from that are just as important. Forget about speculative or penny stocks, chasing unprofitable IPOs, and listening to the manic talking heads in the business media!

Thank you for sharing part of your weekend with me, and please be sure to pass this post on to anyone you think we can get inspired and educated about money, building wealth, and using common sense to do so.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

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