A Look at Investor Personality

A Look at Investor Personality


Some individuals are positive thinkers, others are the exact opposite. In the world of investment, your personality is a big factor when it comes to determining the investment products you’re comfortable with. If you’re wondering, these are the four major categories of investors based on personality. Read on to find out which group you belong to:



● Cautious

C
autious investors always want to be in a safe zone. They are less likely take risks because they tend to make security their biggest priority on their investments. They seldom decide on their own, but find it hard to accept information and recommendations by financial professionals, which sometimes lead to lost opportunities. Furthermore, if they have come to a decision to make a certain investment, they rarely adjust their plans and strategies even when the market already did.


● Methodical

Methodical investors follow certain procedures when it comes to making investment decisions. They usually decide in a conservative manner, and generally take quite a fair bit of time to research on financial data and reports. Methodical investors rely mostly on facts instead of instincts; and as such, some of them may react much too slowly to changing market conditions, simply because they take up so much time to justify and make investment decisions.



● Individualistic


High level of confidence is the main characteristic of individualistic investors. They strongly believe in their own abilities, and hence, are extremely comfortable when it comes to carrying out their own research and making investment decisions. When in doubt, they will dedicate the time needed to clear that doubt. Individualistic investors rarely regret the decisions they made because of their firm belief that they’d eventually attain their long-term investment goals.



● Spontaneous

Investors who are spontaneous generally jump from one decision to another. As market conditions changes, spontaneous investors tend to feel uneasy about the status of their investments, which may drive them to adopt a “change now, ask question later” attitude. Consequently, this makes them easy victims to hearsays and speculations. Additionally, due to the fact that they are making so many changes, spontaneous investors tend to incur the most fees and charges.



In Conclusion


Still wondering which type of investor you belong to? Just do a search on “investor personality test” online and you should be able to find a site to help you in no time! If you are a new investor, ascertaining your investor personality would really help elevate your chances of finding investment products that fit you the best.


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