To define any investment strategy it will be decisive that you define your profile as a small investor. Based on this information, you will have a completely different line of action, and in cases even diametrically opposite in stock market operations. Not surprisingly, it is not the same that you are a defensive cut investor than that you are framed within the most aggressive. You will have to trade equities with guidelines very well defined in each case.
The profiles of the investors will be those that even lead you to totally different terms of permanence, which can be short, medium or long. And in any case, pursuing goals that are not always the same. To formalize operations in the stock markets, you will have no choice but to know which one is yours, and from that moment on, carry out a differentiated and well-defined line of action in the markets.
The profiles are so necessary to know them, that they will even lead you to lean towards a series of very specific values ​​in each case. And with a way to operate with them that will require very specific operations and adapted to each situation. It will be the precise moment for you to know which are the profiles that are presented in the bag and their main characteristics. In this way, it will be much easier from now on to achieve the goals you set for yourself.
Levels in the profiles
The features that you present to face the investment will give you a series of keys that will be very valuable to you to make your savings profitable in the financial markets. In each case they will be different, and will require a series of skills in the investment sector that you will not be able to do without. First you will have to identify yourself in which of them you are included, and verify the characteristics of each group. And in this way, be in a position to apply the buy and sell orders in the financial markets. You are willing?
There are as many investor profiles as there are ways to approach equity trading. Anyway, they will be grouped into a few groups so that you understand it better and can assimilate the lessons that you can get from these explanations. In fact, many financial intermediaries release their stock recommendations based on profiles of investors. With strong variations between some groups and others, as you can see in this article.
Also the capital you have available will influence you in defining this important variable. It is not the same that you have a one-off savings of a few euros, that all a capital from the savings of your entire life, and that it can even come from a family inheritance, or even from a prize obtained through traditional raffles. In each case, it will require a different treatment that will be determined by the profile you present. And that in each case it will not be the same, as you will be able to verify from now on.
Conservative profiles
They are without a doubt the most defensive of all. Not surprisingly, they try to preserve capital over other considerations. They rarely risk in their buying operations and they opt for the safest values financial markets, generally through stock indices in your own country. They do not make innovations in their open positions, and of course speculative securities have no place in their investment portfolio. In short, they do not like to experiment when their money is at stake.
Another of its characteristics is that the terms of permanence to which they direct their operations are the highest, until in some cases they are hereditary investments. That is, they move us, and usually pass to their children or grandchildren. Generally with certain capital gains as a result of the many years accumulated in the investment. Is it so based on very defensive cut-off values that come from the most traditional sectors of the stock market.
Another signal to identify these investors is that their investment portfolio includes securities that they distribute dividends among their shareholders. This is a very clear investment strategy among users of these characteristics. They get to form a savings bag through this regular subscription that some actions have. And that they make them achieve an annual and guaranteed profitability that can reach 8% in the best of cases.
Inverters with intermediate profile
They are the ones that represent a mixed position in the forms of investment. They are not conservative simply because they try to seek higher returns from open positions in the markets. But on the other hand, they are not in favor of making very aggressive exposures, but deep down they also seek greater guarantees for their monetary contributions. In any case, they are more open to new investment formulas, but without exceeding its results.
To make up their investment portfolio they do not hesitate to extend it to other securities exposed to more risks. But without reaching the hiring of speculative securities, which could lead them to ruin a large part of their savings. This characteristic is very clear to them when they decide to open positions in the equity markets, and they take their ideas to the end. Without concessions of any kind.
Regarding their terms of permanence, it should be noted that they significantly shorten them with respect to defensive investors, but without taking them to the shortest term. Not surprisingly, they are characterized because they hardly make very fast operations, and much less in the same trading session. It is not his way of behaving, but his looks They are aimed at terms that are more dense, ranging from 3 to 24 months, in which very well defined objectives are set.
In this case, they are open to less traditional values ​​in the trading floors, although without assuming excessive risks. And that they can finally complement their investment with other financial products from equities: mutual funds, listed funds, and in some cases more aggressive investment models.
Usually they are looking for a return on their savings greater than they have so far, since they are not satisfied with the levels of defensive investors. They try by all means of increase profits, but without throwing the house out the window. They are very clear about the idea that it is essential to preserve their heritage over other initiatives. To finally take this idea to its last consequences.
The most aggressive investors
We reached the most special investment group of all. This is so because they try to earn a lot of money in a very short space of time. Their operations are very fast, they can even be formalized on the same day, without major delays. They try to change their social status overnight. To do this, they do not hesitate to choose the most speculative securities on the market. Where they can obtain many capital gains, but also with the latent risk of losing a good part of their savings.
They do not subscribe the most contracted shares, but in those business niches where there is a greater upside potential. If their bets go well they usually take a lot of money to their checking account. On the other hand, they are characterized because they are practically in contact with the financial markets. Their operations are very frequent, and they are rarely in liquidity positions.
Being one of the investors with the most aggressive profile, they are the ones with the highest learning in the markets variable income. They are tanned in a thousand and one operations. And with negative experiences that affect a greater knowledge of this investment sector. Even in some very specific cases, they make a living from this activity as the main source of their income. They are known as professional retail investors. They know how to operate in the markets, and when they have to apply their sell orders to finalize the operation, they do not hesitate to execute them.
They are undoubtedly the investors who assume the greatest risk in their operations, and not everyone can afford it due to their own personal conditions. Prudence, sometimes, is a word that is absent in your dictionary. And where they stand out for opting for second or third level securities, which very few savers know at first glance. Performing operations with many difficulties in every way.
What group are you in?
After the brief presentation of the class of small and medium investors that can be detected in the financial markets, it only remains for you to reflect on your permanence to some of the groups listed. You already know how they are and what their ways of acting are. And also the risks you incur in open operations in the financial markets.
So that you make the minimum mistakes, it will be highly advisable that you be open to a series of tips that will be very useful in your relationship with equities. They will not be very difficult to apply, and instead you will be able to obtain many advantages. They are the following guidelines for action.
- Define yourself by the investment profile you are adapted to your characteristics, but also depending on the amount you have available for investment.
- Do not change from one model to another with a certain frequency, since the only thing that can generate you is confusion, since you make more mistakes than necessary.
- Whatever profile you have, you will not have to abandon in any case the guidelines to ensure and guarantee the amounts invested. Nor of course let yourself be carried away by unresponsible skills in equity operations.
- Be guided by responsibility and don't risk more money than necessary In each of the operations that your identity marks mark you as a stock market user.