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We know that investing over the long-term is where wealth is made, but this doesn’t change the fact that there is excitement in playing the market game.READ THE ARTICLE
Risky business: Much like gambling in a casino, the chance at winning big is what can make fast moves in the market so exhilarating for investors. Amongst this group of thrill-seekers, however, are three types of “market gamblers”, and knowing which one you might be can help you better understand how to protect yourself from risk. They include:
📌 The noobs: These investors are new to the stock market and are often unable to tell the difference between investing and speculation. The difference between both comes down to information and time horizon. To help eliminate investment uncertainty, and therefore, speculation, reliable information about an asset prior to purchasing it key. Additionally, intending to hold an asset for a longer amount of time increases the odds of its market assumptions.
📌 The dreamers: More open to playing the market than “noobs”, dreamers are individuals drawn to lottery-like investments that could help them quickly get ahead financially.
📌 The thrill-seekers: These are the adrenaline-driven investors. Otherwise known as sensation-seekers, they “accept risk as the price for the reward”, which is in the thrill-seeking experience itself.
Protecting your profit: If you’re personally managing your own investments or a portion thereof, it’s important to recognize why you’re REALLY doing it and avoid game-ending risks. Above all, don’t put money you cannot part with up for grabs.