subject: Investments [print this page] It doesn't much matter which kind of investment you make - obligations, options of supply, reciprocal funds, gold, articles, real estates - in order to be successful you must have a careful understanding of your personal style of investment. Certain investors are takers of risk, certain investors are conservative, and certain investors are a combination of two, according to their liquid position and the form of the investment. The understanding of your personal tolerance of risk and style of investment will help you in the realization of the smart choices of investment. While there are a lot of different types of investments, there are only three specific styles of investment - and these three styles relate directly to your tolerance of risk. The three styles of investment are the conservative, moderate and aggressive. These styles depend on your tolerance of risk and how long you are willing to invest and in what you are willing to invest. For instance, in some cases you must be careful about some strategies of investment which can make the amounts of profit increase. Are you equipped to manipulate these changes, especially if they do not go your way? Other adventures can put your whole investment in danger. You could lose all your silver. It is something that would influence your mind heavily; by affecting in this manner perhaps you will be able to manipulate the investment. Do you panic easily? Are you able of remaining faithful to numbers and to the plans which they represent, always keeping in your mind the points of exit? Where are you putting your investments and why are you throwing original plan into the hope that the investment will return finally? So it is important to think: how do you want to distribute or spend your investments? Do you want to trade every day to make a career? Do you want to give every aspect of your investments? Or would you prefer a more passive role? By passing only one hour a week or one month in insurance, does everything appear as planned? Do you prefer making your own research or relying upon others for your research? Consider your situations of life. For instance, if you invest for planning your retirement and you are in your beginning of the twenties, a conservative or softened approach in your investments are often the best road to take. However, if you invest for your retirement and you are in your middle of the fifties, you should be more aggressive and therefore take a little more risk in your investments. In the same vein, if you try to fund your first home, your approach will be in general more aggressive because your timetable to produce benefits will drastically be shorter than if you worked simply towards a purpose like retirement. The conservative investors want to preserve their initial investment. If they invest $5000, they want to be sure that their initial $5000 will be returned. Ordinary shares and obligations, count of short term money market, notes of the Treasury, assessed-high local obligations, CDS, interest on even savings accounts are investments in general preferred for this type of investor. They have tendency to head free from stocks, since stocks can loosen their value.
