Before you dive in and start investing your money, you need to think about what kind of investor you want to be. There are so many different types of investor, and there are lots of tactics, techniques and approaches to investing as well. By knowing about these things before you started, you can develop an approach that works best for you from the start. One of the four types of investor you will find below could be you, so read on now.
The Calm and Patient Investor
Some people are naturally calm, and they like to invest in a patient and measured kind of way. This can work very well for some people, but others simply aren’t cut out for it. It’s the kind of investment strategy that you automatically slot into, or you automatically don’t. You can’t really control how calm and measure you are when investing your cash or selling stocks. If you remain calm and stay on top of your investments at all times, you can often ride out the bad times and find the good times. However, it can backfire. No strategy or approach to investing is foolproof.
The Silent Investor
Some people like to invest, but they don’t necessarily like the work and energy that goes into it. This is especially the case for people who are investing in startups and small businesses. That’s why many people become angel investors. They look for new business opportunities and invest their money if they like the sound of a business or an idea. But they don’t necessarily get their hands dirty when it comes to the running of the company. Instead, they let the managers and other owners get on with running the business and creating a return on their investment. There are also lots of crowdfunding opportunities for angel investors out there.
The Risk-Averse Investor
Being a risk-averse investor might sound like a contradiction because investing is all about taking risks, right? Well, yes that is true. But there are still lots of investors out there who invest their money in a way that is very careful and cautious. They assess everyone opportunity very carefully. And they never let go of their money unless they are sure of what they’re doing. They might also be more likely to pull out of an investment or sell their shares at the first sign of trouble. This can sometimes lead to missing out on chances to make money. Or it can limit losses, so it works both ways.
The Mix and Match Investor
If you’re a restless kind of person that likes to try lots of new things, you might be a mix and match investor. These are the people who invest in lots of different ways. For example, they might trade on the stock markets and also build up a portfolio of investment properties at the same time. That’s just one example. There are so many different types of investing out there, and you can combine or juggle them in any way you choose to.
