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Importance of Knowledge

Decent Essays

What Type Of Investor Are You? How Investor Profiling Is Changing The Way Investment Advice Is Given

|Over the last few years psychologists have discovered that investors appear to fall into |
| 'types ', and that knowing what 'type ' of investor an individual is can feed into improved |
|investment gains. Jonathan Myers examines the current state of play. |

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|Every investor is different, with different financial …show more content…

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|Another difficulty is that as the fashion in behavioral finance and investment psychology gains momentum and catches the public 's|
|imagination, books appear structured according to several types and a chapter is written outlining how such an investor behaves -|
|in other words, the book is structured round a typography; and the typography is assumed to be correct and reflective of how |
|different investors behave, which it may not be. One of the better examples, however, is in John Schott 's Mind Over Money, where |
|investors are profiled as: The "I Can 't Stop Worrying Investor", The Power Investor, The Inheritor, The Impulsive Investor, The |
|Gambler, "The Make Me Safe Investor", and The Confident Investor. In sum, what this boils down to is that these forms of |
|classification system, even at their best, are still very much in their infancy. But, while they may still suffer from the |
|problem of their meaning being similar to other typographies, as well as of greatly oversimplifying the different investor |
|behaviors, the more carefully produced ones do draw to some extent on theories of personality already in the psychological |
|profession 's armory, and can therefore be helpful for increasing investor

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