Finance Wanted.

By Corinne Lor

It's very important that financial analysts are accurate when working with numbers. One simple mistake can be costly for the firm and cost you your job. I've seen quite a few traders and equity analysts lose their position on the pedestal for arriving at the wrong calls using wrong numbers.

"Fail your way to success."

I don't know who coined this phrase. I appreciate the wisdom in these words and it is one of my mottos. I think many people would balk at this idea though.

The education system conditions everyone since grade school that mistakes are bad. You're penalized with poor grades for being wrong and rewarded with good grades for being right. This carries over to the education system and then makes its way to the professional world. To be hired by the most prestigious financial institution on Wall Street, you need to have outstanding grades to attend the top B-schools and pass the CFA exam with flying colors.

Of course it would be nice to be able to do things right the first time. What are the chances of that happening? We all fell down when we learned to walk. Otherwise, there wouldn't be internship programs for the newcomers or a hierarchy in the financial world differentiating people by the amount of experience they have.

Experience is just a euphemism for a collection of mistakes. The key is to learn from your mistakes and not let them stop you from achieving your goal. Successful financial analysts who are high up in the hierarchy are those who have amassed and learned from their "experiences."

No matter what stage of your career you're in, there's always something new to learn. This means there are always chances of making mistakes even if you apply extreme caution.

Try out as many things as early as possible while the stakes are low. When your stakes are high, hire mentors and advisers who have walked the path before you. It is preferable to be able to reduce the learning curve and gain from others' experiences at this stage.

Don't be afraid to make mistakes. A guaranteed way to avoid mistakes is to not take any actions but this would be the biggest mistake.

Start asking yourself the following 2 questions whenever things are going the way you intended:

1) What did I learn from it?
2) How would I do it differently the next time?

You might need to rebuild a valuation model you've spent a whole week constructing because the valuation method you used turned out not to be the best for that particular investment. You might have worked really hard to break into investment banking and found out it isn't for you, and you would need to switch to another finance field that aligns with your passion and long-term career goals.

Mistakes is an integral part of, and not a contradiction to your strive for excellence. In the competitive world of financial analysts, not being afraid to make mistakes is an indispensable mindset to help you outperform your peers.

Corinne Lor is a success coach for professionals in the banking and finance industry. Visit Financial Analyst blog to read: 30 Qualities Of Outstanding Analysts.