Whether you have been investing money for some time or you are trying to get started, you need to figure out what type of investor you are so that you can determine which is the best investment strategy for you.
There are many tips on how to invest your money wisely. First and foremost, you need to define your investment goals so you can plan accordingly. But when it comes to financial planning, the best starting point is not whether you want long-term or short-term results or what your initial capital is, but which investment strategy will make you feel more comfortable.
To know that, you need to ask yourself 'what type of investor am I?' 'how much do I want to get involved in the market?'.
Here are the different types of investors for you to determine which one describes you best:
-The Passive Investor
This is the most common type of investor, the one that makes an effort to consistently invest for their future. Focused primarily on the stock market, the passive investor follows the “buy and hold” strategy.
-The Active Investor
More aggressive than the passive investor, the active investor loves spending hours looking into their portfolios to see when to take their wealth to the next level. An active investor has way more control over their investment strategy and looks beyond the stock market.
-The Automatic Investor
An investor who has no interest in the financial world, but they know that it’s important for their future. They don’t like to spend their time understanding the market, so they are more likely to have a financial advisor to walk them through it.
These are three valid investor types and there isn’t one better than the other, but you need to think about this and decide which one makes you feel more comfortable so you can make the right decision when it comes to defining your financial plan.
Once you know the answer, you are ready to set your sails and start your investment journey towards a financially stable future.