All investors can be divided into one of these six broad categories. All young investors must be familiar with the behavior mentioned as well. As this can be related to money in general. The outcomes of this behavior may vary in terms of intensity. Let’s dive right in to find out!
The Hobby Trader
A know-it-all. This trader loves trading. This is our average over confident television series guy. Suaave and debonair. He means business when it comes to his funds. But, he also fails. A lot. This is because of his inflated pride and ego. He over trades. He over compensates, over invests. He is addicted to action. He would rather do something than wait for prices to go up. This may get him or her in trouble.
When things are going good, this guy will make them bad just to kill boredom. Even if this
The Risk Junkie
They abhor risk. They like stacking risk and chugging it all at once. If they find themselves a stockpile cash they will be more turned on then a heterosexual man at the best gentleman’s club in sin city. They would hit the markets ASAP. Always better off investing or even spending. They like security, the kind that comes from being perceived as a big fat spending dandy. The high is enough for them, they do not need to make any real money.
The Social Value/Feel Good Spender
This is the kind of investor that buys cryptos for children and their children and as wedding gifts and Christmas presents. All of these really caring and kind and super adorb efforts are to boost their self-esteem. This is the feel good spender. If the expense makes them feel worthy and important or unique, they will spend it. Price tags do not matter. They will pull out a trick from the hat to make things work. Because of this emotional tie, they are likely to refrain from selling accumulated assets and this makes them a mediocre investor. They are not as extra-ordinary as they feel. Because, selling to make a profit, even if it means higher gains for the beloved ones, is not an option for them. Irrational and unstable. Bad combination for an investor.
The Obsessive Finance Guy
This person is the one that feels like the ruler of this world when taking control of something tangible like money or food. They feel invincible and feel that they can substitute this control as a meaningful replacement for stability and rational control of one’s life. Diet makes them feel empowered, switching to better savings accounts and bank premiums makes them feel smart. The quirky and frugal efforts they do, give them highs unlike anything else can. They feel as if they are in a position of power. They are obsessed with this prowess.
The Mogul Investor
No decision is better than a wrong decision. Moguls really let their advisors make the decisions for them. Being emperor is a really big task after all. These investors spend money like them. They invest money like them too. By hiring trustworthy employees how handle funds for them. This kind of an investor can be found in Times Page 3 headlines of how employees embezzled under their noses for a double digit amount of years. Sad, but true. Wealth management is heavy lifting after all.
So, which one are you? Is there another category that you resonate with? Let us know!