We are willing to bet you didn’t even know all these different styles/names below
existed. Even while writing this, we came across even more names for all the
different styles, but we are focusing on these five right now. You want your
trading style to reflect your personality, so you are working for, not against,
If you’re a fundamental investors, then you are in it for the long haul. You analyze,
compare, and go with logic and facts – not emotions or fads. Of course, the
financial market can turn on a dime (pun intended) but that is out of your control.
What you can control is the slow and steady wins the race attitude towards
investing. You don’t worry about the short term because you are in it to win it
and that means hanging on and trusting your research.
Noise investors are the ones who are following the latest trends and are trying to
make a quick profit. They buy and sell quickly, often lamenting that they just
missed the big one because they sold too early or got in too late. They follow the
chatter and are impatient, not willing to sit and research and think out their
investments. Unfortunately, most of the recent investors today are noise investors.
(Think Reddit). If this is you, you might need to find a way to slow down and be
more proactive instead of reactive.
Sentiment investors also seek out trends, but they use analysis to participate in
market movements. Swing investors are a type of Sentiment Investor. They are the
guys who watch stocks for up and down movement and then take advantage and
get their piece of the pie before moving on to the next one. Contrarian investors
(another type of Sentiment trading) buck the trends and sell when others are
buying and vice versa. Warren Buffet summed up Contrarian Trading when he
said, “Be fearful when others are greedy, and greedy when others are fearful” You
need to be well informed and quick on your feet to go the route of Sentiment
Market Timers are the type of investors that try to predict which direction the
market is going and then act to make a profit from that movement. Day traders
think that market timing works in their favor, but the track record of market
timing might prove otherwise. People who flip houses in a booming market are
taking advantage of market timing – but there’s always a risk of the bubble
bursting so it’s a risky strategy. If you don’t know when to get out, you can get
You can hardly be an Arbitrage investor anymore due to updates in technology.
Arbitrage trading takes advantage of market inefficiencies – for example, a
security sells across more than one exchange so you can buy it for less here and
sell it for more there. This type of trading is usually associated with hedge funds
but you have to act before the computers correct. It’s not for the uninitiated.
And at the end of the day, you can be more than one type of investor. Knowing
that there are multiple ways to approach the stock market gives you an edge. The
Wyzer approach can benefit you in this respect. You can pick and choose among
the various advisors and try on all the different trading styles available, without
making expensive mistakes. Also, the research is being done for you by vetted
advisors and that’s huge when you don’t have the time to do the analysis on your
Now that you know more about different types of investors, just for fun, go ahead
and take this little quiz (compliments of babypips.com) and see which trading
style best describes you.
Hedge funds, investment bankers, and other professional investors are desperate to find out what the next GameStop will be before it's too late. It is worth remembering that the rise driven by Reddit has crushed some hedge funds betting against GameStop, the network of theaters AMC Entertainment and other popular actions on social media.
One side effect of the pandemic was that people who had to stay home and couldn’t work were not able to cover their costs with the little bit that they got from unemployment and EIP payments. Now that everyone is mostly back to work, it’s understood that we need to do a better job of investing and saving. Here are some tips to help you out with that.