A different product for each investor profile

To optimize your investments to the maximum, you will have no better initiative than to choose the best product for each occasion, or to be more specific, depending on the profile you present as a small or medium investor. Not in vain, they will be different, and even with a very well differentiated treatment. It will be one of the most important keys to guarantee the success of your operations in equity markets.

If you do not want to make mistakes of some relevance in the markets, you will have to adjust to this classification. Not in vain, it will be the one that gives you the necessary guidelines to generate any movements in the main financial assets. In addition, it will be a very accurate strategy to protect savings more effectively, even with a healthy dose of positives in financial markets. Therefore, you cannot miss out on this system that will set the guidelines for your action from now on.

For everything to develop according to the designed approaches, it will be especially necessary that start making your own profile as an investor. Based on your objectives, available capital, terms of permanence and even the levels of risk that you are willing to assume in each of the operations carried out in the equity markets. It will be the main requirement to achieve this first objective, which will be none other than knowing how you really are as an investor.

Profiles: different levels

Identifying your profile will not be frankly difficult and you will be able to know it in practically a few minutes. So that, based on this variable, you can create an adequate investment portfolio and in accordance with the characteristics that you present. You may already know it, but if not, from now on it will be less difficult for you to know this important part of yourself. The benefit on your operations will be very tangible, and the performance of your operations in the stock markets may even increase significantly.

If you are one of those who provide a series of more aggressive profiles, you will have to resort to the riskiest formats of equities. Not surprisingly, it is where you will be in a position to earn more money. Although in exchange for the possibility of losing many euros along the way, and sometimes in a very dangerous way for your personal interests.

It is not advisable to generalize it under a standard profile for each of the savers who are going to allocate their assets to the ball or other similar products. The greatest benefit comes from investment customization, and adapted to all the factors that affect your relationship with the stock market sector.

Product depending on the profile

There will be a different product for each of the investors. In the most aggressive, even involving speculators, there will be a preference for new designs made for equities, but also to alternative markets. Structured products, warrants, credit operations or derivatives will be the most advisable for these cases. The risk will rise enormously, but the return may be much more satisfactory.

The more conservative or defensive profiles, on the contrary, will choose to seek security over other considerations. And in this way, look for the safest stocks on the equity markets. Coming from business segments with solid lines of business. And on many occasions they distribute a fixed and guaranteed remuneration every year through dividends. You can report an average interest rate of around 6%.

And in the middle of these investment levels are intermediate investors. They are the ones that mix some of the characteristics of the previous profiles. They seek to risk something else in their positions, but without excesses. Not at all reaching levels of speculation. They have in the operations of buying and selling shares and investment funds the main products to satisfy their needs.

Nor can those investors who are first-timers to formalize some kind of financial operations be forgotten. Those who are going to perform his baptism in the markets, and that they are not attached to any group. They can choose any of them, depending on the expectations that have been created. They are, therefore, receptive to all the advice of the other profiles of small and medium investors.

How will this year be for your investment?

As the investor's profile becomes more aggressive, the contributions to the operations he opens in the financial markets increase. Up to levels that can encompass a very important part of your heritage. However, this strategy carries very high levels of risk. Especially if there are strong depreciations in the stock markets.

While the most defensive investors are more cautious with the amounts they make. They usually dedicate only a part of their savings, and that it is combined with the contracting of other banking products (time deposits, promissory notes, government bonds, etc.). In a way, they are more likely to diversify their monetary income. As the only objective of protecting them above other considerations.

Only those who like great risks dedicate all of their contributions to equity operations, where they highlight the contracting the most sophisticated products. All a very well defined purpose, and that is none other than to obtain the maximum possible capital gains, and if possible in a few days, or at least weeks.

What products do you contract?

Now is the time to clarify which are the favorite products for small investors. Always under the aforementioned filters. And that will give a more objective classification on the purpose of your savings.

Conservative profile: They invest in the stock market, but under more precautions than other investors. Its center of operations is based on bank deposits and promissory notes, as products that provide greater security to its positions. They look for a minimum return, but guaranteed every year that helps them increase their assets little by little. They are not concerned with large revaluations, but not lose a single euro on the balance of your current account. Nor do they discard investment funds. But in any case with the most defensive models generated from the management companies. They are usually linked to fixed income, and in some cases they even opt for those of a mixed nature. But they do not go any further in their claims.

Another of its characteristics is that its terms of stay are excessively long, above normal. They like to have the savings invested for a long time, but guaranteeing the returns. They are not inclined to experiment with new products, much less with risks. Your control over the accounts is planned from the beginning of your operations in any kind of financial market.

Moderate profile: they come to take more risk, but as long as they are controlled. As a consequence of this characteristic, they are open to new investment models. They go to equities through very short-term sectors, where returns can be more generous. In any case, they seek to provide greater flexibility and diversification than in other types of profiles. Their goals are aimed at the medium term, although they disregard other periods of permanence.

Despite everything, they are also frankly reluctant to subscribe to more risky investment models, or to compromise their balance sheet. They are very favorable to collect their benefits from time to time. To be able to enjoy a personal whim or satisfy a personal or family need. Nor do they usually deviate from these behavioral guidelines, with a few exceptions.

Aggressive profile: the most radical of all, because it tries to obtain benefits in the fastest way. Where it does not hesitate to lean towards the more expansive formats that allow you to earn more money in a short time. From this very special scenario, they opt for financial products such as warrants, ETFs, derivatives and others with similar characteristics. The risks they take are obviously broader and more demanding.

They are very prone to looking for truly original investment alternatives. There is no shortage of equity markets in international countries, or even in emerging countries if that is the case. They try to take advantage of all the business opportunities that present themselves. Without worrying about its volatility or that they may make mistakes in its management. And within what are investment funds, there is no shortage of more aggressive proposals, even from fixed income (corporate bonds, high-yield bonds, etc.). In short, they really like to experiment with financial assets, of any kind and nature.

Keys to identify your profile

If, despite everything, you still have not managed to find your profile as a user, you will have one last chance to get to know it and adapt to its peculiarities as an investor. In any case, they will start from the following tips that we will present so that you achieve these objectives so necessary to define the strategy in the financial markets.

• Review the last movements you have made in recent years. You may come to a clearer conclusion about who you are as a financial user.
• Inquire into the term of permanence that you give to your investments, since it will clarify the degree to which you belong as a financial user. More than you can initially imagine.
• You will have to ask yourself until risk levels you can reach. It will be a key question in the diagnosis that you have to ask to clarify your situation.
• Are you in favor of underwriting products derived from fixed income? If that, you will have a very defensive component that will determine all investments that you do from these moments.
• It will also be very important that you consider how much of your capital you can assume in some possible losses. It will be a valuable piece of information to shape your profile as a small investor.
• And finally, behave as you really are, without trying to experiment in financial markets.