What Type of Investor Are You?

When you get your frugality down, you will have the edge on the competition. So are you a day trader who plays the market like the crap tables, going all in on a penny stock, the value investor like Buffett, a master manipulator like Soros or do you have a conservative style of the typical buy and holder? Whatever fancies your style, you need a strategy in order to invest.

If you were able to take the money you saved and make it work for you, that would be ideal. But, if you are started out doing it, the best thing to do is probably hold on to your job and invest conservatively at first, but as you make trades and investment deals, you need to be prepared to build up for the next big thing. I have been able to take this mindset and run with it. I would suggest saving up to ten grand (like me) and then get your feet wet in investing heavily. You can out forth small amounts of sweat equity or try to invest passively per paycheck. If you happen to make around 3-4K a month, I would suggest trying to build up contingency investments like a 401K or a Roth IRA in case if things go sour. I would say that most of your saving should go towards the next investment, but  conserve at least 50% of your cash for other investments.

If you are young, I would say that you should be prepared to fail first. I am not saying go out and totally lose your money, but be prepared to bounce back from losing. Losing is not a part of anyone's strategy, yet no one prepares to lose. Most people are usually wiped out of funding by their first venture or in less than three years. The way to counter loss is to have a nest egg. Who knows, you might not make a profit until the second or third year. That is usually the case for big box retailers. I am not saying stick it out if your losing because the only ones that can really do this is corporations like Wal-Mart or Costco.

Now if your in it to win it, remember one's personal investment style will not lead to success by merely mimicing the style of the gurus; you need to branch out and find your niche. While my style is value investing and buy and hold, it is still evolving. Who knows, it might switch to a growth stock, penny share strategy. I am finding my niche as well. And it will never be complacent with just stocks; I want to invest in other areas as well. So what type of investor am I? Probably 60% Buffett, 20% Vulture, 20% Dividend Investing. I will never truely know how one guru totally thinks, so why bother trying to emulate their success. I would rather become the guru by replicating success.