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Types of Equity and Derivatives Investing

Discussion in 'Managed Funds & Index Funds' started by -T-, 18th Jun, 2006.

  1. -T-

    -T- Well-Known Member

    2nd Apr, 2006
    Hey All

    I was just wondering how someone becomes a certain type of investor. I'm sure it's not usually a conscious decision, but if you were going to consciously consider it, what do you think is the workflow of making the decision?

    For example, you may ask yourself a series of questions based on:

    - outlook: long , medium or short-term
    - risk profile: medium or low
    - objectives: balance between income and growth
    - automation: low, medium or high
    - knowledge: advanced, intermediate, novice
    - personality: balance between fundamental and technical
    - start-up cap: amount willing to commit to strategy

    But... how do the answers lead to TA, or FX or CFDs or buy-and-hold? Most people sit on the fence and say everything has its benefits, but I bet one combination of instruments, strategies, etc has produced higher return, lower risk, more automation and less capital than the others. Hmmm...

    Anyway, just thinking aloud; any thoughts. :D