In the last step of the process of assessing our own profile we have to evaluate our sensitivity and tolerance to changes. We need to be consistent with bith what we think about our aversion to risk and what we do in practice. We can't think we don't want risk and then invest most of our money in products that we don't undestand or that are very risky. We must be aware of our true sensitivity and invest according to it.
To help us making this assessment and to understand ourselves better we should ask ourselves:
What would we do if markets get crazy and valuations grow fast? Would we react to that situation buying more?
What would we do if there is a crisis and our investments drop a 30%? Would our heart survive to that?
And, as loses are going to happen, how are you going to feel when they come?
In #imap we have created 4 types of avatars:
Protector: for those who can't hold lossing money.
Defender: for those who can resist some loses.
Explorer: for those who are less sensitive to changes and stick to follow their plan, even when market gets crazy up or down.
Fighter: for those who accept risks and want to maximize their profits, open to change their plan when they see opportunities.
#imap uses the avatars to control the risks, to track the progress of our goal and to give us personalized information along our journey. If you don´t have yet the app, you can check all its features here.
At this point we should have a clear idea about our profile. The last thing we should do before starting our journey is to check if we are well equiped with a good safety net, the size of our piggy bank, and our savings power.
Hozzászólások