What's Your Investing Style?

Holicent

VIP Contributor
Investing style can be defined as the way in which an investor's personality, expectations and financial situation affect his or her investment strategy. Investors' expectations are framed and the ways by which they choose to reach their investment goals depend on their approach, attitude, or philosophy. A person's investment style is heavily influenced by the type and quantity of resources available, time restrictions, level of risk tolerance, and degree of freedom in selecting among available options.

Investment styles tend to change over time as people get older or gain new skills or experiences. The ability to develop an investment style that suits your personal goals can be one of the most important factors in successful investing. Investors with a long-term orientation place emphasis on value, return and growth over short-term market fluctuations. They are willing to take some risk in order to achieve higher returns with less volatility than investors with a short-term perspective.

Investors with a short-term orientation place more emphasis on short-term market fluctuations than those who have a long-term investing perspective. They tend to have a more conservative approach and prefer not to invest in risky assets like stocks or bonds because they believe that such investments will decline in value over time.
 
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