Investors do come in different types nowadays, depending on how much of a risk-taker they are. For one, certain types of investors prefer to invest in low-risk instruments and are not afraid to hold cash for long periods. If you think that you are falling under this investor category, John Mattera will tell the signs that you might be a conservative investor.
You Are Risk-Averse In Terms Of Investment
First of all, you want to avoid the risk of losing it all in an investment, and you’re looking for a way to grow your wealth with less investment risk than other types of investors.
As this kind of investor, you probably don’t mind taking on some investment risks if there’s a good chance of making a lot of money from your investment quickly, but you prefer steady growth over short-term gains most of the time.
You Want A Simple, Straightforward Investing Strategy
To be an effective conservative investor, you should have a simple, straightforward investment strategy. A simple strategy is easier to follow and implement, which means it’s less likely that you’ll deviate from your plan. It also means that external factors are less likely to affect your investing decisions.
John Mattera Simple strategies are more easily replicated than complex ones because they require fewer steps and decisions on behalf of the investor–you can simply copy someone else’s portfolio if their approach appeals to you (and if they’re willing).
You Are Wary Of The Stock Market And Other Volatile Investments
And lastly, if you’re a conservative investor, you may be pretty reluctant to invest in the stock market and other volatile investments. This is because they can be risky and lead to loss of capital, and the risk of losing all your money is higher for conservative investors than it is for those who are more flexible with their investment strategies.