Know Which Type of Investor You Really Are

If you are an investor then you need to ask this question to yourself, what kind of investor are you. Well this might come as surprise to most of you. But knowing which type of investor you are is going to help you immensely in making your investments. It is most common for people around the world to say that their investment style varies depending upon the circumstances like the market value, the financial turnaround around the globe. However it is important to understand that each and every one is basically either a conservative, a moderate, or an aggressive investor. If you are capable of understanding in which category you belong then you might be able to make smarter investments.

Talking about the basics there are many types of investments for example, investments in shares and stocks, investments in gold, investments in currency trading, investments in bonds and mutual funds. However there are only 3 types of investment styles, these are: conservative, moderate, and aggressive.

In order to determine which type of investor you really are you need to ask these questions to yourself. Are you more concerned with your initial investment value, are you looking to build your career more steadily, are you looking to make your living out of investments, do you do your own research or rely heavily on others research, are you looking forward for a huge return in a very short period of time, does your investment affect your life heavily, at which age did you begin to invest, do you have any time limit by which you need to get some returns, so on and so forth. Answering these questions will definitely help you understand your investment style.

For example let’s take the following example. If you are an investor in your early 20’s you can afford to be either an aggressive investor or a moderate investor. The reason being you have your whole life to correct things if something goes wrong and if everything goes according to your plan then you have your whole life to enjoy the benefits. Similarly if are looking to collect a certain sum of money within a specified duration of time, lets say within a year or 2 then you need o be an aggressive investor. You need to invest in some speculative market, individual stock and blue chip stock to make your desired amount of money within the time limit. Similarly if you are an investor who is investing after retirement then you do not have to go all out, you need to sit back and think properly and invest into something which is guaranteed to give you good returns, in other words you need to be a very conservative investor.

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