You may be a little too aggressive for your good when it comes to investing. While this can help with certain aspects of investing, sometimes it can hurt investors like you. The key to being a successful investor is knowing how much risk you can take. Here are some tips from John Mattera that will help you learn how to be successful even as an aggressive investor.
Understand Your Investment Risk Tolerance
Your investment risk tolerance will be different for each type of investment and different from person to person. For example, if you’re investing in stocks, a high degree of volatility would be considered high risk because it could result in losing money on your investment.
But if you have a long time horizon or have other sources of income, then this may not matter as much since losses won’t affect your ability to live comfortably today or tomorrow. In contrast, if someone else has only enough savings for one year before needing another source of, then even small losses might cause them significant hardship at an inconvenient time.
Know The Specific Products You’re Investing In
As an aggressive investor, it’s important to understand what product you’re buying and why, as well as any risks involved and expected returns. You should also understand how long you have to invest, as well as any tax implications of your investments.
That way, if something happens within that time frame, it won’t catch you off guard. Finally, make sure that there are no restrictions on how much or when you can invest: some companies require minimum amounts per purchase or only allow purchases once per month or quarter!
Learn From Others Aggressive Investors’ Mistakes
As you learn more about investing, you’ll find that there are some common mistakes that other aggressive investors make. By John Mattera learning from the mistakes of other investors, you can avoid making the same ones yourself. Don’t be afraid to ask for advice from other aggressive investors and don’t be afraid to admit when you’ve made an investing mistake.
