There are 6 types of investor behaviors when it comes to investing in markets. They are classified as
- Circumspect investors
- Emotional investors
- Active Investors
- Passive Investors
- Enlightened Investors
- High-tech Investors
Circumspect Investors: The investors tend to be circumspect as they are risk-averse. They take their sweet time to decide and in the process sometimes they don’t take the right decision.
Emotional Investors: They apply their mind over heart. In a way, they tend to have a bias. If they like company products then they tend to invest in such companies. Sometimes they hold on to the real estate thinking it will become better and never give up
Active Investors: These investors are serious investors or traders. These investors follow the ups and downs of each market such as equity, gold or real estate prices. They take the risk on market volatility and they are typically day traders or positional traders
Passive Investors: They are passive investors who feel they will ride the market across all market conditions. They tend to follow their advisors. They invest in schemes that have a proven track record and take limited debt and have good CIBIL SCORE. In their view “Everything is safe in the long run”
High-tech Investors: They are as good as “busy investors” except that they analyze the numbers and read the market predictors rather than reacting to every trend in the market. They spend a lot of time watching computer screens or mobile to site a trend or an opportunity. The feel kicked up when they do find some opportunity ahead of others. In this process, they tend to go overboard sometimes. Otherwise, they are suave and smart investors
Enlightened Investors: They are the best investors to work. They take their own decisions and they take inputs or advice from the experts and act decisively. They tend to follow work ethics and would like to hire similar minded people to be it investing or consulting etc.
If you know to which category you belong then it makes it easy to drive your goals