"Hereâ€™s how to know if you have the makeup to be an investor. How would you handle the following situation? Letâ€™s say you own a Procter & Gamble in your portfolio and the stock price goes down by half. Do you like it better? If it falls in half, do you reinvest dividends? Do you take cash out of savings to buy more? If you have the confidence to do that, then youâ€™re an investor. If you donâ€™t, youâ€™re not an investor, youâ€™re a speculator, and you shouldnâ€™t be in the stock market in the first place."