Mar 29, 2012

Posted by in Penny Stock | 0 Comments

Identifying The Real High Risk Investor

It is very easy to identify the high risk investor. This is the person who is not afraid to take the risks that other people would run away from. In other words, this investor has the ability to think outside the box. Again, the investor in this category believes that high risk will usually lead to high profit margins. For this reason, this investor feels that the return on investment will justify the risk he or she is taking.

Understanding the high risk investor:

The high risk investor is usually young. Older people are very conservative and so they may not want to take unnecessary risk with their capital. Again, this investor is most likely to male. This is easy to believe because men are generally more daring than women. So it stands to reason that the investor who is keen on getting involved in high risk ventures is likely to be male and not female. Of course, there are always exceptions so these rules are not cast in stone.

Choices of the high risk investor:

In most cases, the investor who wants to take a lot of risk will have to go outside the normal investment choices that other people are likely to make. For instance, this investor will target the stocks of new companies instead of blue chip stocks. The reason here is that these are the stocks that are likely to go through the roof and therefore, the prospect of huge profit is bound to attract the investor.

Decisive action:

Another quality of this investor is that he or she is likely to be a very decisive person. Conservative investors would prefer to carry out a lot of checks before taking the plunge. On the other hand, the high risk investor will prefer to act and stake his or her money as soon as the decision to invest has been made.

Investing based on unconfirmed information:

There are instances where the investor needs to take the plunge and act without having to verify some vita information. In this context, the high risk investor fits the bill. For instance, there may be rumors that the state government wants to site a new industry somewhere out of town. The conservative investor will hesitate before buying land in the planned location. The high risk investor will not hesitate. He or she will simply buy up plenty of land in that area and hope that the information is true. In the event that the information turns out to be true, this brave investor will smile to the bank. These are some of the characteristics of the high risk investor.

Comments are closed.