When you consider investing as a way to increase your wealth, be it in the short or long term, it is essential to understand the type of investor you are. In broad terms, there are four different types of investing styles; the saver, the investor, the trader, and the speculator. If you can match your personality and goals more accurately with one of the styles, then the more chance you will have at succeeding. Ryan Kavanaugh is one of the investors you can learn form he invested in various sector in Hollywood.
Now be honest with yourself about your present situation and investing goals. Maybe you are just out of college or perhaps at the peak of your earning potential or even in your pre-retirement years. These are essential factors to consider when looking at investing as each style has its own risk associated with it and a timeline as to when the investment may or may not bear fruit.
Saver is the most risk-averse style of investing. Typically money is laid away in a savings account that can be linked to financial vehicles such as mortgage interest rates. If those rates increase then so does the interest paid to your account, and if those rates decrease so does the attention paid to you account. In ninety, nine per cent of savings account the capital is guaranteed.
Ryan Kavanaugh investor will buy assets for the long term. These assets can be anything from stocks to real estate to precious metals. The investor will look to invest wisely when the markets are low and sell when the markets are high. These assets can take many years to mature.
The Trader is looking to make money over the short term and is perhaps the riskiest of investing strategies. The term “day trader” become synonymous with secure internet access and the dot com boom and bust if the late 1990s. Traders look to invest in stocks, spread bet, and trade in foreign exchange markets and not for the faint-hearted.
Finally, the speculator, while often mistaken for the trader, seeks to buy and sell assets for a few months. Speculators typically invest in futures and options, although companies’ stocks are also popular.
Understanding its nature is key to mapping with a particular investment style, and strategy is key to success. A mix of styles can often work where a percentage of your investments are exposed to risk and the more significant portion secured in something like a savings account. If you are unsure, it is always prudent to discuss your situation with an independent financial advisor.