In the world of trading, being able to make smart and well-calculated investments is of the utmost importance. Knowing exactly when to invest, how much to invest and what to invest in is something every investor out there is dreaming about.

However, many investors make a mistake of investing their assets into something that doesn’t quite correlate with their own personality, which often brings subpar results.

What Type of Investment Suits Your Personality?

That being said, in order to ensure that you’ve made the best possible investment, you first need to assess your own personality and the type of investment you feel most comfortable with.

Another frequent mistake investors make is investing in a market they don’t quite know much about in hopes of generating a significant profit.

However, this can turn very sour very fast, as you can easily make a crucial investing mistake if you decide to pursue something you know next to nothing about.

Therefore, before you decide to move forward with your investing efforts, check out some of these types of investments and the personalities they are most suited for.

Hopefully, this provides you with some additional insight necessary to make the best possible decision for you personally.

4 Types of Investments Suits for Your Personality

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1. Real estate for the patient and creative

Investing in real estate is definitely a good example of an investment that can easily turn sour if you don’t know the market you’re choosing to invest in. For instance, a particular commercial real estate property can look absolutely stunning and have all the right perks, but if it’s situated in a district that doesn’t have a lot of growth potential, it just isn’t worth the investment.

On the other hand, if you’re familiar with the market, you’ll have a few opportunities to profit off of your investment.

For instance, you can simply buy properties while the market prices are low and wait for them to go up before you list the property for sale once more. Alternatively, you can buy and renovate the property and then sell it for a higher price, thus securing additional profit.

Finally, you can simply buy a property and choose to rent it, thus becoming eligible for certain tax benefits and rental income.

What Type of Investment Suits Your Personality?

2. Stock market for the calculated

Another good investment opportunity is definitely stock, especially if you’re a calculated individual who doesn’t like to take a lot of risk.

When stocks are concerned, there certainly are various ways you can approach investing in them but options are probably the ones that carry the least amount of risks.

For instance, trading options is an excellent way to earn some passive income and they are especially a good choice for newbies in the field of trading and investing.

Basically, options work like this – you purchase an option contract that allows you – but doesn’t obligate you – to sell that contract at a preset date. Once the time comes, if the prices are not quite in your favor, you can choose to back out of a trade and thus minimize your loss.

Therefore, if this sounds appealing to you, check out different option strategies and find the one best suited for your trading style and personality to make the most of it.

What Type of Investment Suits Your Personality

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3. Venture capital for the opportunistic

Next, if you like to size particularly good opportunities – and let’s face it, who doesn’t? – you might consider becoming a venture capitalist.

Basically, a venture capitalist is a person who chooses to invest in up-and-coming startups who express the potential to reach great success and profitability in 3 to 5 years.

Not only that, but the way venture capital works is as follows: you – the venture capitalist – invest in a certain startup that has a lot of growth potential. In return, you get shares of the said startup so you automatically become a part of that startup’s decision-making process.

However, in order to find the right business to invest in, they’ll need to provide you with all the necessary documentation, such as their business plan, social proof, market estimation, financial projections and so on, based on which you’ll be able to weed out the ones that are not quite favorable.

4. Angel investing for believers

Finally, similar in a sense to venture capitalists, but not quite the same, are angel investors. Unlike the venture capitalists, angel investors choose to invest in businesses that feel strong and passionate about their endeavor and are not just looking to get rich fast.

As an angel investor, you invest in a particular company and wait patiently for them to reach success. Once they do, you will get a 25% return on your investment form them. This is an excellent investment opportunity for all those people who truly believe in others and want to support businesses that can potentially make this world a better place – no matter how long it takes.

So, if you’re considering entering the world of investing, or you’re already present there but you are not quite experiencing the results you were hoping to see, it might be a good time to stop and reconsider your options.

Simply put, in order to reach true success with your business efforts, you should try to match your investment type with your personality.

That’s the best way to ensure that you are completely comfortable in your business ventures which will guarantee positive results in the long run. As with anything else in life, being yourself always brings better results than trying to be something you’re not.

Author Bio: Marco Lopo is a Sydney-based business consultant and a marketing analyst. He writes about business and lifestyle. He thinks that’s the perfect opportunity to present himself to a wider audience and receive recognition. In his free time, Marco enjoys music, travelling and also is a big reading enthusiast.

About the author

From time to time, we feature outside authors on fincyte and publish their informative guest posts online. This is one of those selected guest posts. Further, opinions expressed by Fincyte contributors are their own.

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