Knowing your investment style will help you choose investments wisely. There are really only three specific investment styles: conservative, moderate, and aggressive.
Conservative investors aim to maintain initial investment. When they invest $5,000 – they want to be sure that they will get their initial $5000 back. For this reason they usually invest in common stocks and bonds and short term money market accounts.
A moderate investor usually behaves like a conservative investor, but use a portion of their investment funds for higher risk investments. Moderate investors put 50% of their funds in safe or conservative investments, and invest the remainder in riskier investments.
An aggressive investor takes the risks – this means investing higher amounts of money in riskier ventures in the hopes of achieving larger returns. Aggressive investors often have their investment funds in the stock market.
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