Risk taker Investor

A risk-taker investor is, as the name suggests, someone who remains unfazed by risks and willingly embraces them.

This trait is both an advantage and a disadvantage. On the positive side, they can take calculated risks over long time horizons, staying the course while others may struggle with instinctual doubts.

However, this same disposition makes them more susceptible to pursuing high-risk strategies like options trading or leverage, which can be detrimental to the long-term health of their portfolio.

What do you need to think about as this type of investor

  • Risk management is crucial for this type of investor, as you’re more likely to pursue risky strategies and concentrate your investments in a few stocks. To help with this, we recommend exploring our free course on risk management, where you’ll learn effective methods to control risk while maintaining strong potential for gains.

  • We strongly recommend avoiding leverage strategies like options, as they carry extreme levels of risk. This is especially important for risk-prone investors, who may be tempted by the illusion of quick wealth—a path that almost never ends well. Stay disciplined and focus on sustainable growth strategies instead.

About your subtype

  • Being an active investor is a valuable strength, it shows you're engaged in what you're doing and motivated to keep going. Don’t underestimate that! The challenge, however, can be resisting necessary changes to your plan or over-selling your investments, which could harm you in the long run. If this sounds like you, try taking a step back and relaxing. You won’t lose anything by doing so, and you’ll be able to maintain your enthusiasm while staying focused on the long term. Try to invest in some high risk, high attention level stocks as that will likely suit you well

  • Being a semi-active investor is a great starting point, as it provides a balanced middle ground. Keep doing what you’re doing, and aim to invest in stocks that require a moderate level of attention—this approach will likely serve you well.

  • Being an inactive investor isn’t necessarily a bad thing, as long as you adjust your investments to match your level of involvement. It likely means you’re not very interested in stocks—and that’s perfectly fine. You can still benefit from them, but you’ll probably need to be more disciplined in your approach.