Behavioural loss tolerance: Med. to high
Behavioural Loss Tolerance
Shows how much loss you can emotionally handle without making impulsive or irrational decisions.
Low
Medium
High
Your Investment Personality
The Social Trader
You like to be where the market action is and are likely to be afraid of being left out. You are socially influenced and take risks more impulsively than introverts but often find yourself transitioning from a trader to an investor when your investments go south. You sometimes wish there were a "copy trade" button - so you could instantly mirror the moves of top-performing investors and ride the wave with confidence. You may have your own ideas about other things in life, but not investing.
Behavioural loss tolerance: Med. to high
Behavioural Loss Tolerance
Shows how much loss you can emotionally handle without making impulsive or irrational decisions.
Low
Medium
High
Strengths
Sociable
Leverages network for investment ideas and opportunities.
Decisive
Acts quickly on perceived opportunities.
Optimistic
Expects a lower probability of a market crash and maintains confidence during drawdown.
Confident
Self-assured and seize opportunities that others might hesitate to pursue.
Weaknesses
Low self-control
Easily influenced by external elements (I.e., market news, analysts opinions).
Impatient
Act without thinking thoroughly.
Fear of missing out (FOMO)
May over-trade and engage in short-term investing, chasing market hypes.
Over-trading
Takes unnecessary risks to chase high returns.
Short-term focus
Prioritizes short-term gains over long-term stability.
Your investment style is Growth investing
Here are some options often associated with this investment style:
Growth Index Funds
Track a stock market index composed of growth-oriented stocks, offering exposure to companies with above-average earnings growth.
Equities Funds
Funds that invest primarily in stocks (equities), which can be growth, value, or a mix for long-term capital appreciation over time.
Why?
Growth Index Funds curb FOMO and captures market trends without over-exposing to unnecessary risks.
Watch out for...
Using margin and chasing hype stocks without proper research or analysis.
Ready to build your portfolio?
Separate Goals & Speculations
Separate long-term investment account from 'speculative' account.
Invest Steadily, Grow Smart
Automate investments with Dollar-Cost Averaging into low-cost Growth Index Funds based on your investment horizon.
Play Small, Stay Balanced
Limit 10-20% of your remaining funds for active stock picking or speculative plays.
The investor’s bookshelf
These are some independent resources for further learnings based on your personality.
The Little Book of Behavioural Investing - James Montier
Helps identifies pitfalls like FOMO and overconfidence, offering tools for disciplined decisions.
Market Wizards Series - Jack Schwager
Interview with top traders provide learning opportunities and insights from others' experiences which effectively eliminates social biases.
Reminiscences of a Stock Market Operator - Edwin Lefevre
Teaches market psychology, emotional discipline, systematic decision-making, and adherence to trading rules through storytelling.
