Before you join the exciting life of investing, it’s important to determine what type of investor you want to be. Just like selecting your ideal character in a video game, you need to first consider which goals you plan to achieve.
How long do you want to hold a particular investment? Are you planning on making short-term returns that you can use later in the year, or do you want to let your money accumulate so you can fully reap the benefits in the long-term?
All investing includes risk in one way or the other. Are you able to watch your investment fluctuate and go up and down in value? Your risk level will likely be determined by how urgently you need the money. If you’re approaching retirement, it probably isn’t the best idea to invest in something with high fluctuation potential. However if you’re in your 20s or 30s saving for the long-term, you shouldn’t care as much about the volatility of your investments.
How often do you want to be checking up on your investment? Do you want to buy something, continue on with life and check back on the investment months or years down the road? Or do you want to be continuously monitoring the investment and taking advantage of any potential opportunity that arises?
What is your willingness to learn everything you need to know about a certain investment? Some investments are made super simple, while other demand more study time. Do you want to become an expert in a certain type of investment? Or do you want to keep it basic and and continue on with your daily activities?
You’re in control of who you want to be as a person and an investor.
So the question is:
What type of investor do you want to be? Write us your thoughts down below!