Knowing and Understanding Your Investment Personality

Written By Chouhab on lundi 26 janvier 2009 | 06:55

By Rahn Naro

There are many different ways and methods of investing, and often they will depend on your own personality for investing. Many of us will have a friend or associate who is very aggressive with their investments, while others are very conservative, and struggle even to invest in low risk ventures.

While it is not the intention of this article to pass judgment, we feel a blend of the two is the best way to increase your holdings over time.

All of us desire to be winners in the market, increasing our nest egg, and achieving our financial goals and dreams, however it's important to take action so your dreams can become a reality.

Our positions will rise and fall based on the economic and global climate, or possibly because of a small investment mistake such as jumping onto a "Buying Frenzy" too late, then watching it tank. Rather than beating a dead horse, learne from your mistakes and live to invest another day.

Here are a few guidelines...

one of the key points an investor must determine is how soon they require the return of their capital. Some will be investing for the long term, others will be hoping for quick gains, and the ability to use these gains to enhance their lifestyle. This is certainly an indication of your investment personality, and whether you're willing to do the necessary research to buy quality stocks before everyone jumps on board.

Will you need your money back quickly, or will you let it sit for the long-term? If you're someone who needs your money quickly, do you have the proper mentality to watch the markets rise and fall on a daily basis? It will often be necessary to jump in and out of a position as trends change, are you prepared for this? If not you might be better suited to buy established stocks and hold for long-term gains?

PENNY STOCKS OFFER GREAT UPSIDE POTENTIAL: The term penny stocks is actually a misnomer, since the price of the stock's range from fractions of a penny, up to $4.99 per share. Since these stocks are initially priced low, they have the greatest opportunity for quick upside potential.

Becoming an investor in today's market is a challenging enterprise, however using sound strategies and proper picks, your upside potential can be enormous.

When you decide to invest, you've embarked on a road they can be both challenging and rewarding. Take the time to determine and understand both your short-term and long-term goals, which would help determine your investing personality. Once you've made these decisions, you'll either need to do your own research, or be aligned with quality investment newsletters, or financial websites.

It would be wise to take the time to open a brokerage account, no matter the state of the market as you read this, this will give you the necessary foundation to make your investment moves when the timing is right.

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