Planning to invest sooner or later? Then you need to know what kind of investor you are!
Investing is not just about depositing money to your broker and buying the stocks that you think will go up. There are factors to consider and you need to be aware of them. Prior to investing, you need knowledge. Learn about how the stock market works. Learn about technical analysis. Study fundamental analysis. Make sure that you are not risking more than 10% of your money. Diversify.
Aside from the things you already know, let’s talk about what kind of investor you are. Are you a short or long-term investor?
To evaluate whether you are a short or long-term investor, know your goals. Are investing to buy the latest gadget at the end of the year? Are you investing to buy your car after 2-3 years? Are you investing to purchase your house and lot after 5 years? If your goal is to be completed within a year, then it’s a short-term goal. If your goal is to be completed within 5 years and beyond, then it’s going to be long-term. You can evaluate what type of investor you are by knowing your goals.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Although the amount of your investment is not just the only thing that can measure how big of an investor you are, it plays an essential role in determining whether you are a short or long-term investor. If you invested a big amount, let’s say 1 million pesos, and your goal is to make just 50,000 pesos, you can easily make that profit in less than a year. But, if you start investing a small amount, let’s say 10,000 pesos, and your goal is to make 50,000 as a profit, you will need to wait for a couple of years before you can achieve this amount. If you don’t increase your capital, you will need more time. The more time you need, the longer you become an investor.
Not all investors have years worth of patience. Some don’t even last for a month. There are factors that affect the level of patience of investors. When the market is red, investors tend to withdraw their investments even at a loss. This is because they are afraid that the price will go down more and they will lose more money. They become impatient at this point. Also, investors get scared when they see their portfolio become red. If you think you don’t have the patience to wait for years before you can get big profits, then I suggest you go for short-term goals and investing. But if you can tolerate more bearish and bullish markets, then you can be a long-term investor.
Everything depends on your end goal. If you are in the market to achieve your dream of buying a house, a car, or retiring young, then you can be a long-term investor. But, if you’re just here to profit small or achieve short-term goals, then it’s fine to be there in the short run.