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In the stock market investing, there is no such thing as types of investors who are better than others. You should decide that which type of stock market investing suits your personality. The stock market always needs different types of investors to be able to function well. There are many types of investors in the stock market. Some are bearish, believing that the market is going to fall, while others are bullish, believing that the market is about to rise, with these categorizations, investors can be classified into the following types: Active Investor – An active investor is involved with the day-to-day management of an investment portfolio and makes frequent changes to reflect new buying and selling opportunities to respond to the unpredictability at the time when the trading direction of individual stocks changes without warning. They are stark opposite to a passive investor. They commonly engage in picking dividend stocks, times, managers or styles. They include predictions of future sales and earnings growth and are often based on gut feelings and intuition. Passive Investor – Passive investor is one who does not play an active role in the business. They don’t participate in the day-to-day decisions of running a company. In partnership, these kinds of investors may be deemed limited partners rather than general partners. A passive investor relied on the controlling stakeholders and the management to conduct the business of the corporation in such a way as both to maximize its value and to share the upside potential with the passive investor. Speculator – The Speculators choose to take control of their investments, and not rely solely on time to get to the point of financial independence. Instead of just spreading their money across stock funds, bonds, real estate funds, and a variety of other asset categories, speculators are always looking for an investigate edge. They recognize their ability to have higher return than savers and are willing to do or try anything to get those returns. Aggressive Investor – An aggressive investor is one who invests primarily or exclusively in shares. They track the performance of their shares and are a very active buyer and seller on the stock market. These kinds of investors subscribe to investment journals and real the financial pages in the newspaper of the latest share news on the internet. Specialist Investor – The specialist investors realize that there is a more powerful investing strategy than just diversifying across a range of asset classes. They recognize that investing is no different than any other competitive endeavor-there will be winners and losers but the winners will generally be those who are most prepared. Conservative investor – Conservative investors are those who want their money to grow but don’t want to risk their principle investment. They choose financial products that do not fluctuate much in value. They are either with a short term goal or in retirement seeking a regular income stream. However these investors miss out on explosive growth during times of economic prosperity. Bottom Line – These are some types of investors. In order to determine what type of investor you are, you have to take risk tolerance quiz online and consider your gut feelings about the level of risk that you are willing to accept. Whether you are aggressive, conservative etc. you are sure to build long term wealth when investing into the stock market. Dividendinvestor provides additional Dividend data, information or screening tools, we encourage you to visit the website. A leading source for in-depth research & analysis on Best Dividend Stocks
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