Why Can Investors Be Conservative or Aggressive?

[Suba]

Each investor uniquely has its own risk profile. In general, each investor has a mixed risk profile, such as conservative and moderate or growth and aggressive, but each investor has a tendency towards one risk profile that dominates him. There are several factors that cause an investor to be conservative or aggressive, such as:
1. Influence of family, environment and social media
2. Psychological factors
3. Possess financial knowledge and literacy
4. Investment experience
5. Investor's financial condition.

 

[kit_hung]

See, every investor has their own way of taking risk. It's like a river that flows differently. Some go slowly, others go a little faster. Many have a mix of conservative and aggressive but each has a dominant profile. Family, environment and social media influence investment behavior. Also, intelligence, financial situation and experience contribute. As the Chinese say, forgiveness builds a bridge. The way to understand your risk is to be aware of yourself and learn little by little about money and investments until you are careful without taking unnecessary steps.

 

[King Belieal]

I think that the potential that the investment has could be one vital reason that an investor can be aggressive or conservative.

 

[Springtime]

You have mentioned all the factors which may affect the risk appetite of an investor, Other than that, I think the personality and investment experience of the person play an important role.

 

[Fidelia]

An investor that has a high level and degree of risk tolerance would always be aggressive. While those that are not play safe and invest low stakes.

 

[Min George]

One factor that could affect the aggression level of an investor is the freedom of time they have to recover their investments.