What Kind Of Investor Are You? Here Are The 4 Kinds Of Investors And Their Potential Biggest Wins

If you are new in investments, it's important to know the level of risk that you are okay with. Different investment personalities have different risk appetites and attitudes when it comes to financial choices regarding their income-generating projects and funds. You must clearly define which of these kinds of investors you are, so you may be able to grasp whether a particular investment is right for you or not. 

Here are the different kinds of investors and their biggest potential wins:

This kind of investor usually has the FOMO (fear of missing out) personality. They gamble a lot in hopes of getting a bigger return of investment. They are confident enough to risk a huge amount of money in an investment they think will perform the best The biggest potential win of a risk-taker is the huge ROI they will get from the market they are in.

This might be the kind of investor that suits every beginner and professional today. Professionals like accountants, lawyers, doctors, engineers, and other office people are busy ones which would rather HODL an asset (hold on for dear life) until its price appreciates enough before they will withdraw and realize profits. The biggest potential win of passive investors is their ability to earn a lot even with a small starting capital.

The active investors are those who are heavily involved in making financial decisions and strategies that they think will mitigate their risks and losses brought by the volatility of the market. They are the ones carefully monitoring the market conditions and make adjustments as often as needed. The biggest potential win of an active investor is their ability to realize income even when the market is unstable or at its poorest state.

This is the kind of investor that is looking to preserve their assets for a future purpose. Commonly these are the people approaching the retirement age. These people are worried that once their monthly salary stops coming, they'd need something more than their pension to keep living the lifestyle they want. Perhaps, the biggest win of the preservers is that they would usually ask for the help of professionals, which in turn, would help them carefully preserve their wealth and guide them to the proper and appropriate investment products.

If you do not fit in any of the above yet, you might be what they would usually call as 'The Straight Arrow People'. This is the group of average investors who have a definite objective in mind and they are willing to take the risk associated with it to achieve that said goal. Their attitude varies according to the investment they see fit for this objective.

These different kinds of investors have their own strengths and weaknesses. Find which one of these are you so you can make good decisions regarding your current financial tracks and habits. Keep in mind that some types of investment might not be good enough if your personality does not suit. As such, you cannot thrive in a high-earning volatile market if you are scared to put a high amount.