Risk tolerance is a popular topic in the investment community. The greater your risk tolerance, the more her risky investments you can afford, not enduring stress. There are many ways, which allow you to determine risk tolerance. Usually assume, what's more, all the better. However, my work allowed me to single out a group of traders, who prefer safety. They relax while working and trade with the appropriate mental mood.. It's not good or bad., it's just a trading style.
Answer the following questions, what to evaluate your trading style. Determine how much each of 20 judgment suits you personally.
1. I never let my instincts influence my trading decisions..
2. If I don't have a choice, I prefer traditional solutions more, than the original.
3. I like safety.
4. I never do anything under the influence of the moment.
5. Development of a mathematical model, which would allow me to make predictions - would be interesting for me.
6. I feel comfortable, when my investment plans are based on sound foundations
7. I prefer solutions, based on facts and logic, and not on instincts.
8. I usually make decisions, based on logic, and not on feelings.
9. I usually wait, until I have reliable information and proven facts, before making investments.
10. I like working with facts and figures better., than with people.
11. I experience hesitation when innovating.
12. I avoid accidents.
13. I prefer familiar surroundings.
14. I do not make a decision, until I have all the necessary facts.
15. I avoid unnecessary risks.
16. I prefer predictable situations.
17. I never do anything aimless, just for fun.
18. Security – above all.
19. I prefer to spend more time solving a problem., but know, that the decision is correct, than to finish the job quickly with the risk of making a mistake.
20. I don't do anything impulsively.
For every answer "yes" – accrued 2 points, for every answer "no" – 1 point. How many points have you collected? If your result 20, then you are in the group of the most cautious traders. Less than a quarter of those, who took this test, scored the same points. Most of the members of the reference group collected 21-27 points. More 28 points were also collected by less than a quarter of test participants.
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What do they mean, glasses obtained? High or low points have nothing to do with the potential profitability of your trade.. It indicates your trading style.. People who have scored a lot of points, long-term deals are more suitable, requiring tangible (but not excessive) confirmations, before opening. Don't confuse caution with perfectionism.. Rather, it is a more attention to detail.. It's better to trust facts more, than instincts, and safety and proven tactics are much better than excitement and innovation.
