What Kind Of Investor Are You

We have covered a lot of the basics of investing particular the things which are important to know before start investing in stocks or perhaps before actually trading them.

Now, we will cover the topic and discover what type of investor you are. This is an important part because discovering what type of investor you are, you can formulate good plans of attack about your investing strategy. Really, the process of buying and selling stocks isn't the same as buying toys in the mall.

So, in this post... I will show you the three types of investors and your job is to scale yourself which group you belong. Again, if you can't determine exactly what type of investor you are, ask help from your financial planner.

Investing is basically a two step process and it shouldn't be complicated, but you have to take these steps seriously to have a better chance of achieving success. The are two basic steps to investing; determine which type of investor you are and build a portfolio.

The Three Types Of Investors

1. Growth Investors - These are the type of investors who are always aiming for growth and huge returns for their investments in the long term perspective. However, there are certain risks associated with this type of investor type and need to balanced the returns and growth of the investment. Typically, there are lots of ups and downs here, so proper mindset to tolerate certain losses is a must in favor of a higher returns.
2. Balanced Investors - These are the type of investors who are cool and relaxed. They always want a slowly and steady growth of their investments. They're conservative but still have the eagerness to take advantage of that long-term growth, accept moderate growth and include more diversity on their investment portfolio.
3. Income Investors -These are the most conservative among the investor types. Usually, the people belong here are those people who are investing their retirement money. They have a very low tolerance for risks and can't afford to lose the money they're investing. They prefer slow but sure returns on their investments.

Now, pause for a moment and ask yourself which group do you belong. Again, if you can't decide promptly but want to get moving, a financial planner can help. As I mentioned earlier on here, it is sometimes difficult and challenging to ask yourself and make a connection to your inner you and ask where you gonna invest your money?

Below are some suggested investment portfolio according to investor type. Literally, there are tons of ways to invest the money, but, depending on how risk oriented you are, you must choose certain investments you can opt for.

However, with simply 3 buys, you can safely invest in Exchange Traded Funds(ETF) which monitors a wide range of asset classes such as domestic and international stocks as well as bonds.

Recommended Investment Portfolio;

Growth Investor

• 69% - Domestic Stocks
• 13% - International Stocks
• 08% - Bonds
• 10% - Savings In Cash

Balanced Investor

• 49% - Domestic Stocks
• 12% - International Stocks
• 18% - Bonds
• 21% - Savings In Cash

Income or Conservative Investor

• 31% - Domestic Stocks
• 06% - International Stocks
• 34% - Bonds
• 29% - Savings In Cash

Take note that these are only suggestions and you still have to base your investment portfolio on where you are now and perhaps what you think you can.