There are many different types of investors in the stock market. Some people are bearish, believing that the market is going to fall, while others are bullish, believing that the market is about to rise. Within both categorizations, investors can be classified into the following types: Aggressive, Moderately Aggressive, Moderately Conservative, and Conservative. Which type are you?Aggressive investors tend to concentrate on equity investments such as individual stocks and mutual funds. They are open to more risk, willing to see large short term swings in market performance on an annualized basis. They aim for large growth in the market, often above what the long term market performance has shown. They are also seeking quick growth in their portfolio, and some are even called “Day Traders.” The recommendation for this investor is to have a minimum timeframe of 15 years before they will need their principal investment, to allow for variations in the market to average out. The average rates of return that an aggressive investor expects to see is between 12-14%, a few percentage points above the long term stock market average.Moderately Aggressive investors also seek longer term investment gains through a mix of equity investments. While many of the […]

Full Article At: KnowHow-Now.com Articles

Bookmark to: