How You Can Work Out What Kind of Investor You Are

How do you work out what kind of investor you are? You can start by looking at the following points and deciding which ones apply to you.

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Are You Safe and Steady?

Do you like the idea of your money growing gradually and without any great surprises? There are plenty of people who simply want safe investments such as bank accounts, Government bonds, and money market funds.

There are several types of investor who fit into this category. Perhaps you are close to retirement age, can’t afford to lose any money on bad investments, or are basically a risk-adverse person by nature. This kind of person is happy with steady, unspectacular returns month after month.

It is said that 90% of people lose money in the stock markets. If this statistic makes you shudder, then you will want to avoid putting your money into the likes of stocks. On the other hand, people who opt for safer investments won't lose money but will see relatively slow growth.

Do You Like to Be Bold and Adventurous?

Perhaps you prefer to imagine your money growing at a faster rate. Are you quite happy running some risks in order to have the chance at more spectacular returns? Higher risk investments such as cryptocurrencies and stocks are very tempting for this type of person.

The idea of FX trading is also fascinating for smart and confident investors. For example, CFDs offer leveraged products that can gain money very quickly. Huge returns are possible for anyone who makes the right moves at the right time.

Being bold and adventurous can earn you a fortune if you have a solid strategy and make great decisions. Hugely successful investors such as Warren Buffett have made their fortunes by being bold but sensible. Buffett started trading stock at 11 and has been consistent since then.

Are You Proactive and Eager to Investigate?

Some investors love the idea of staying on top of their accounts. These are the people who will spend hours each day looking into the latest facts and figures, while also exploring the other options that are out there for them.

If you feel confident in your own ability, then this is a recommended approach. You can feel totally in control as you pick the stocks, currencies or other types of investment that you are most interested in. You don’t need to be a financial expert, as you can learn along the way.
 

Are You Happy to Let Investments Run?

Alternatively, do you feel more comfortable with the idea of just setting up an investment and letting it run? Provided that you make a good choice at the beginning, then there should be absolutely no problem in doing this.

Naturally, some types of investment are more suited to this passive approach. You will want to be sure that this something that can be allowed to run and run without any input from you along the way. This rules out fast-moving commodities such as Bitcoin and certain types of stock.

By choosing the right way of investing for your personality, you will feel more relaxed and positive about what the future holds. However, if you get it wrong, then you will be left worrying about how your money is doing and whether it will give you the returns that you crave.