People have different personalities. It influences the way they think and how they behave around others. But their personalities also influence the way they do financial investments. Are you stubborn and impatient? Or are you too cautious and insecure? These properties reflect the way you invest your money.
By discovering what kind of investor you are, you can better understand and prevent mistakes in the future and put together a balanced portfolio.
So what kind of investor are you now? Let’s find out:
First, we have a Moral Conscience. They choose their investments carefully – sometimes too carefully. They only invest in matters that they believe serve a higher purpose. For example, only in shares of companies with programs for the poor. Or they opt for environmentally friendly companies. This may limit the investor’s options and may not result in capital appreciation. However, high return on investment is not always the goal for this person.
The Real Estate Player is not the type to participate in the stock market. Instead, they prefer to invest in something more tangible, on which they have control, such as land, buildings, or even antiques. But just like the Morally Conscious, this can also limit their options and growth. Although it is often very risky, especially for beginners, investing in stocks more often than not will lead to high returns.
The Automatic Pilot does not think twice about when it comes to investing. They have always reserved resources. The problem with autopilot is that they have a tendency to continue to invest without keeping an eye on those investments. If they pay no attention to it, they can discover that they are not performing as they would like.
The Overconfident believe that they have power over the outcome of their investments. This makes them more sensitive to impulsive decisions. Instead of waiting patiently, for example, they trade their shares immediately when the value rises. They are also those who probably do not listen to the advice of their financial adviser. That’s if they already have one.
The Follower is not always the best informed about the investments. As the name implies, they follow the latest investment trends without proper planning. This is often due to the fact that they only copy their friends or colleagues. But just because something is popular does not mean that it is safe from financial risk in the future. In combination with a lack of knowledge, this can lead to little growth or even a shortage.
Belonging to one of these types of investors is not always a bad thing in itself. They can all lead to high investment returns – even the follower. Ultimately, it is always up to you to decide when and where you want to invest. But to ensure as much success as possible with an investment, especially if it is for the long term, it is best to be a flexible investor.