Strategist or tactician: what kind of investor are you? Part 2
We continue the topic that we started in the last article on the official website of Amir Capital Group.
So, we hope that thanks to the previous material, you figured out who you are: a strategist or a tactician. Now let’s talk about how your personality affects your finances.
How do most people usually start looking for investment instruments? From a question on Google: Where to invest? That is, people immediately start looking for Tools. And there are a lot of tools. Then these instruments are added to a certain portfolio, which does not always fully satisfy the investor. Tools are most often purchased randomly: on the advice of a friend, according to an article from the media, on a hype of a new topic, etc. A person does not think about whether these tools are compatible with each other, how profitable and reliable they really are, what the level of risk exists, and so on. All this looks more like a warehouse, and not like an “investor’s portfolio”, because a person does not have a clear understanding of what to do next with these instruments and how to manage them? This is tactics without strategy.
The diametrically opposite path for a human strategist. He sets himself a certain financial goal. And only after that, he begins to look for tools that will lead him to the goal as quickly as possible and with minimal risks (or with serious ones, here everyone determines for himself). Along the way, he analyzes the stages of achieving the Goal, the actual profitability of the selected instruments, respectively, some of the instruments may change, new ones will be added, and so on. Targeting is the strategic path.
The attitude of tacticians to money is also determined by their way of thinking: if there is money, you need to spend it, if there is no money, you need to go and earn it. He is fed by what he is doing right now, he works only for an immediate reward, the very “Tit in the hands.” The tactician always and everywhere seeks guarantees. But since life is an unpredictable thing and no one gives guarantees to him, the tactician in the end prefers not to do anything global and does not make long-term plans. Lives for today. And, accordingly, if you live every day like the last, then many years later you will have to do the same in order to survive. As a result, the tactician works every day and he always has no time to earn money for the future. For the same reason – immediate benefit without understanding the essence of the instrument – tacticians often fall prey to financial pyramids. They take loans, invest large sums in dubious enterprises, and end up with nothing.
For a strategist, the situation is different. He has goals and always makes plans for the future. He is fed by what he has already done before, so he can work when and how much he wants, and also rest. He does not need to chase a piece of bread, he has several sources of income. The strategist is ready to work today for the sake of profit in the future, he is not afraid to take risks and is sure that one way or another, he will eventually get his “Pie in the Sky”. His portfolio includes various investment instruments: short-term, medium-term, long-term: for different purposes. Before purchasing something, the strategist scrutinizes each tool from every angle to make sure that the tool really fits into his strategy. And if suddenly, somewhere, something does not go according to plan, the strategist is ready for any development of events: his portfolio is correctly distributed, contains various instruments and he will never lose everything at once.
Did you recognize yourself in one of the descriptions? As world practice shows, all successful investors are strategists.
How can you become a real investor if you are a tactician? First of all, set yourself a Goal. Decide: why do you want to invest? To have more money? How much more? For what, what do you want to buy? When? Answer these questions honestly. And then, depending on the Goal, begin to paint a strategy and select investment instruments.