Each person is unique – and yet we can identify repetitive patterns of behaviour.
The criteria are:
- Venturesomeness
- Profit orientation
- Relaxed approach
- Caution
The venturesome investor
- Makes speculative investments (prefers high risk/high profits [secondary issues, options, junk bonds]).
- Often neglects to check his investments.
The profit oriented investor
- Has the courage to take risks.
- Precisely controls potential risks.
- Self-confident when making investment decisions.
- Chooses opportunities with good prospects [shares/equity funds].
- Reacts to a decline in price with composure.
According to information from stock market circles the profit oriented investor achieves the best investment results in the long term.
The cautious investor
- His investment behaviour is characterised by low readiness to take risks, regular controls and self dependent action.
- Safety is the highest priority for him; he selects his types of investment accordingly [fixed deposits, loans to creditworthy debtors, possibly blue-chip shares]
The risk averse investor
- He is in favour of protecting his investments and against taking any risk.
- To avoid unpredictable situations he prefers safe investments [fixed deposits and loans].
The relaxed investor
- Generally takes low risks, apart from sporadic exceptions, and only occasionally checks his investments.
- His investment instruments are standard securities.
He resolves the conflicts caused by his intermittent quest for profit and laxity in controlling his investments by taking well thought out decisions.
