This is one of my first videos when I started a few months ago on Youtube… When I see it again, I feel ashamed… But, I tell myself what’s the point of denigrating my past, it’s the one that made me learn and become the one I am (Roooh the philosopher!!!!)! Today we’re going to take a look at the 4 investor profiles that will allow you to define yourself and see what you want to do! Zé gone.
The different investor profiles
It is difficult to define oneself when one has little knowledge of the world of trading or investing. That’s why we need to remind you of the four main profiles of traders / investors:
- There is the investor, he takes positions that he will keep for several years;
- There is the swing trader, he is there for several weeks, even months;
- There is the day trader, who takes positions that last in the day or max 2-3 days;
- Finally there is the crazy scalper, the one who looks at the minute, even the second and who can buy and sell several times in the same day.
Okay, now you know the profiles, that’s cool. Now you’re going to have to figure out what that means… Let’s take a closer look!
Small zoom on the 4 investor profiles
Experience required: basic with little time in portfolio management.
This is the person who says “ok, I’ll buy now and come back later”. However, he rarely has the notion of long-term buying, of how to do it and he is often the person who will find himself with positions at -50% or even -90% in the next few months. Maybe later on, he will be able to see prices rise again if he has selected the right assets, but this is not certain…
To begin with, I invite you to read my article on long-term buying strategies if you have not already done so before continuing!
This person who will have read my article will know where to buy by looking at a chart. However, he will have to be careful, because there are also, 2 other important notions.
What to invest in?
What am I investing in? A company? Is it profitable? Is it growing well? Or, a crypto? What is its supply? What is its purpose? Does it bring something, etc.? (Or whatever I’m not closed).
So, he will have to ask himself if in the long run, the stock/crypto/material he is buying will be able to outperform his Livret A over a general 2-10 year period!
What is my investment plan?
How much do I invest? When do I sell?
In general, a person with a balanced profile invests a maximum of 5% of his capital in an asset. Then for the selling methods, you have the SHAD which is described in the article on strategies, there are others that we will see in due course (again! But he said the same before! … Don’t worry, if you buy now, I have plenty of time to explain the long term sales methods)
We have seen the profile of Mom and Dad, now let’s see the profiles a little more trading oriented.
Le swing trader
Experience required: the guy is not new, he has technical analysis and project knowledge. He may not have a lot of time, he knows risk management and understands how to use leverage.
This person will look at weekly and daily charts and will place on an asset on a daily or 4-hour basis.
- He is willing to hold his asset for a long time, a few weeks or a few months;
- He has the notion of Stop Loss so that if the market does not go in his direction, he accepts to sell at a loss.
This is why he needs to know about risk management.
The day trader
Experience required: Very good knowledge of the markets and the assets he trades. He already has several months of experience in analysis, he is available, he knows how to manage a portfolio and masters risk management and leverage. If you think I’m abusing you, you still have work to do.
This person will take short term positions, over a day, or even two or three days depending on the case. He will do analysis on daily and 4-hour scales, or even 1-hour scales and then take positions on 1-hour or 15-minute scales.
He will necessarily need to be available and have an adapted trading plan. He will already have experience, and he will have already studied trading systems on paper, then in test, then finally in real life.
As you can already see, we are starting to enter well-experienced levels, but the worst is the scalping of the scalper (and I am not talking about Inglorious Bastards).
Experience Required: The guy is hyper analytical, he is stress resistant, he has a lot of experience, he is available throughout his sessions, he masters risk management and leverage…
He is the guy who likes to put pressure on himself. He will need the use of leverage and a good understanding of the associated risks.
In general, he will look at 4 hours, 1 hour and 15 minutes for the day’s underlying trend and take positions in 5 or 1 minute.
It is the speed of execution that is important here, as well as the quick decision-making. That’s why it’s not for everyone.
Feedback and conclusion
Personally, I tried all four profiles, I don’t have a long history, but I wanted to try to find myself.
For me, it is necessary to differentiate the investor side and the trader side. That’s why I opt for two different portfolios, one dedicated to long-term investments, the other to short-term trading.
As I am not very patient, trading allows me to accept that my investments will last a long time. But, as I dislike to hold long-term positions, I am not a swing trader because weeks / months is too long.
Then scalping, I tried it, it’s good, but it doesn’t suit me, and it creates a lot of stress and a lot of time in front of the charts.
Finally, and this is what I want to do now: day trading.
It suits me and I can do my analysis quietly, not stress to find an entry point and then leave the screens having put orders for my profits or losses. And, I put little alerts that tell me whether I was good or not.
However, you may not be like me! So for once I’m going to give advice because I have the right.
The only way to know what you want in life is to try. Try, you have nothing to lose. Well okay, a little money if you mess up. So if you try with money, $10-20, no more. You can also use platforms to test for free.
In any case, follow the classic advice, whether in trading or investing:
- Only commit the money you are willing to lose;
- Before you start, try it out;
- Understand risk management, even when investing (it will keep you from going into a shitcoin);
- Above all: Ask questions, ignorance is the worst thing.
For questions, with Coinpri, we are here to help you to have the minimum via our guides and articles. So, if you have any topics to suggest, you can contact us on our networks. And, if you haven’t already read it, go ahead and read our guide to investment methods. If you want to try the NFT adventure, we also explain how to get one for free. Enjoy your reading.
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.