Protecting one's principal is very important to conservative investors, who are also typically worried about market volatility. They are prepared to put up modest investment returns in order to prevent primary losses. The returns from conservative investments are usually lower than those from riskier ones. Conversely, investors who are risk-takers perceive potential in market fluctuations and take significant risks with the hope of achieving a substantial rate of return. They tend to gravitate toward riskier investments that carry a large potential for both profit and loss.
So, which type of an investor are you?
So, which type of an investor are you?