See pages where the term aggressive investor is mentioned. Types of investment strategies A conservative investor prefers securities with

Associated with risks of varying degrees.

Aggressive investors receive the greatest profits, but they can also lose all their money as a result of wrong actions.

Investment tactics

An aggressive investor is an investor who differs from a conservative one in that he works to obtain the maximum possible income. Their portfolios contain financial instruments, characterized by high risk. These include stocks and futures, as well as other high-yield products.

Bonds, bank deposits, demonstrating low income and providing high reliability, are absent from their portfolio. Aggressive investors are ready to enter new markets; they are willing to invest money in innovative developments.

This strategy works well at short intervals, but it is difficult to generate high income for a long time. The likelihood of error increases, so investors who use aggressive trading should take care to protect their funds.

Bank clients who have opened an individual investment account (IIA) can also choose different strategies. They are based general rule: Investor’s money flows through the exchange into sectors of the economy.

By purchasing company shares, you can get an IIS yield of more than 16% per annum. To increase your income using tax benefits proposed by the state, he should not sell assets for 3 years.

Aggressive investing

There are several other tactics.

It is believed that investments involve placing funds in reliable companies and projects, which allows you to steadily but slowly increase capital. But it's only fair when we're talking about about classical investments.

Aggressive tactics are suitable for active investors; they are based on risky investments in projects with increased profitability. With this kind of trading, transactions are concluded intraday, even every minute. High-frequency trading allows you to quickly increase funds in your account, but this tactic works in the hands of an experienced trader, and a beginner can instantly lose money.

When trading intraday, managers use leverage. Thanks to him, when the price of an asset moves by several points, they come out with a large income. But if there is a sharp price reversal, the trader may suffer losses.

Aggressive strategies are complicated because the manager has to analyze the behavior of the asset over a short period. If in classical investing the forecast is given for a month or more, then high-frequency traders assess the situation intraday. It is difficult to make an accurate analysis; shares of strong companies can go down at daily intervals, while weak assets can show the opposite dynamics.

Speaking about aggressive trading, it is worth considering its effectiveness. The trading potential is approximately equal to the risks taken, but paying a commission to the broker reduces the profit. The balance of the scales is not in favor of the investor. This is the reason why intraday trading is so promoted. brokerage companies and financial intermediaries.

During a day of trading, a trader can conclude more than 100 transactions, and the profitability for 1 month easily exceeds 300-400% per annum. The numbers will seem unrealistic to many, but professional securities traders have such indicators. But you need to understand that with such activities, beginners can lose money in a matter of minutes.

Conservative investor

Conservative investors are not ready to lose money. They differ from moderately aggressive investors in that they strive for a small but mandatory income, so they invest funds in proven instruments.

These are bonds, stocks large companies, ETF, precious metals, deposits and other assets with high liquidity.

The investment horizon ranges from 3 to 20 years or more. Time plays into investors' hands, reducing risk and providing capital gains. High dividends from large companies allow you to buy even more securities, increasing your portfolio. This investment strategy is suitable for passive investors.

Portfolio investing

This type of investment is different in that the investor does not just acquire securities, but forms a portfolio. It includes both conservative and volatile assets. This is done in order to increase the profitability of the portfolio.

The main rule for investors is diversification, which means distributing funds across several assets, from corporations to securities issued by young companies.

The difference between portfolio investing is that the owner of the securities does not have to manage them. This passive way making a profit.

Myths about aggressive investing

Revenue from high-frequency trading varies across different markets. When trading, it can exceed 16%, and when dealing with currency maximum income may be at the level of 40-115% for 1 month or more.

Beginners, seeing these numbers, begin to calculate annual profits and look for suitable investment options. But before that, they should familiarize themselves with the myths that have developed around aggressive trading.

Aggressors give very good returns

Yes, but it won't always be like that.

In one month the level of income may be high, and in another the amount earned will be easily lost.

Aggressive accounts quickly recover their positions after a drawdown

Perhaps the manager will recover the losses, or maybe not. It takes months to recover from the drawdown.

Even when receiving income, the investor must share with the trader; he receives up to 50% of the amount received.

If you select several aggressive accounts and distribute funds between them, then the profit will still be

The idea is good, but it is not entirely clear how to determine these accounts. After their opening, traders begin to disperse the deposit, attracting investors with high rates of return. At this stage, accounts are often drained, so those managers, having taken a large amount into control, they switch to a calmer strategy.

By investing money in a newly opened account, an investor is taking a risk. 20 out of 100 will only cross the annual threshold, the rest will go into drawdown or be lost. Therefore, investing even in several aggressive accounts does not guarantee income.

Entering on a drawdown is a sure way to make money on aggressive accounts

It is not clear at what stage to invest money, and a drawdown may indicate that the manager is failing.

Bottom line

Aggressive investing can be used, but you cannot invest all your money in such accounts.

To increase the profitability of a portfolio, it is better to introduce instruments with increased risk into it, or to transfer the amount to a professional trader for management.

When we hear the word “conservative”, something related to stability and immutability comes to mind. The meaning of the word according to the dictionary is to preserve, preserve, protect, defend the old. There are even conservative investments – i.e. with minimal growth and low, but stable, income, and with virtually no risks. But is this really so, and what is it? conservative investments Today?

There are three types of investment strategies - conservative, moderate, and aggressive. So, the main task of a conservative strategy is the safety of your capital. It is not aimed at growth, or at generating income. Its task is to protect against losses and preserve your capital. We’ve decided on the concept, let’s move on.

Typically, conservative investments include: endowment insurance, cumulative pension programs, government bonds and bonds of large issuers, where the share of government participation is high. All these tools practically guarantee the safety, as well as a slight increase in your capital.

All these tools exist, they are all available to individual investors, but not everyone is interested. And not because the income is low, but precisely because these are conservative investments, i.e. those that are not profitable. And many novice investors succumb to this misconception.

If we talk about investments on the Internet, or, using the Internet, then almost all of the above investments can be made remotely. It's a matter of time to figure out how. But no one wants to figure it out - it’s long, tedious, and almost useless if the income is scanty.

Hit the jackpot, and more. This is the desire of the majority of novice investors who lose their money in fraudulent projects, pyramids, out of inexperience and naivety. And it is after significant losses that those who have not given up begin to see the first glimpses of reason - they begin to study the basic concepts of the world of investment, and only then invest their capital.

Conservative investments, this is where an investor needs to start. This is the first step - to study, to understand, to plunge into the world of investing, not to drown there and not to let yourself be eaten by experienced sharks.

The second step is moderate investments, where there is more risk, but also better returns. Well, the top of this is aggressive investment. They are not available to everyone, but to many. This is high profitability, high volatility, but also the highest risk of capital loss. To play such investments, you need to be an experienced player with solid capital. The trouble is that many, after one or two successful transactions, begin to mistakenly consider themselves game aces, enter the wrong level and lose everything. A familiar situation, sad consequences.

– what type of investment are they? I would classify them as conservative. Despite all the apparent complexity and danger, choosing a quiet account with low profitability is not difficult. Although you can play aggressively on this field, the main thing is not to overplay it, so as not to get lost.

The most conservative investments there are investments in shares of various funds and bonds. Do it in trading terminal is not difficult.

When I compose mine, I make room for all three investment strategies. This proportionally reduces risk and increases profitability.

There's an interesting theory that says your age should be equal to the percentage of aggressive investments in your portfolio. Accordingly, the older you are, the larger your conservative portion of your portfolio should become. But having tried many theories and options, I personally determined for myself that, after all, conservatism is closer to me - although the safety of funds today cannot be guaranteed by any strategy or asset.

There are plenty of investment tools on the Internet today - from those that promise unimaginable profits to more realistic figures. But this is the task of a conservative strategy: from all this variety and, excuse me, shit, to choose exactly those assets that, in addition to preservation and protection, will generate profit.

Today the world, it seems to me, is becoming volatile, and in order to get income you need to understand investing, control your assets and greed, along with your fucking ego. This is the key to constant income and capital growth.

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Successful investment activities cannot be carried out without a correctly chosen investment strategy. Every novice investor is faced with the task of competent distribution of available funds. Money between different sources of investment. The intensity of the purchase and sale of assets also plays an equally important role. The types of investment strategies and their proper combination are the key to success for any investor.

Naturally, you need not only to have theoretical knowledge, but also to be able, based on existing economic realities, to select the optimal ratio of specific actions on stock exchanges and other financial markets.

Existing types of investment strategies are usually divided based on 2 parameters:

predicted return on investment;
potential risks of loss of investment.

In economics, it is traditional to distinguish four types of investment strategies:

conservative (passive);
moderate;
aggressive;
mixed.

Every investor needs to understand that for each of them there is a direct proportional relationship between actual risks and the level of return (profitability). In other words, the higher the risk for a particular investment, the correspondingly greater profit the investor can count on. And vice versa. The lower the risk level, the lower the profitability, and, therefore, the attractiveness of the investment in question.

Now I propose to analyze each of the above strategic types in more detail.

Conservative (passive)

A conservative (passive) investment strategy implies the lowest profitability. In different sources, it is understood as a yield level of up to 15–20 percent per annum.

At the same time, in this case the investor is dealing with minimal possible level investment risks. That is, such investments in practice practically do not threaten the loss of invested capital.

Classic examples of conservative financial instruments include:

bank deposits;
government bonds;
investments in real estate;
buying gold or platinum;
units in conservative mutual funds.

Moderate

A moderate investment strategy implies a higher level of profitability. As a rule, we should talk about 20–45 percent per annum.

As we already know, as investment income increases, the real level of risks also increases. That is, unlike conservative investments, moderate ones can no longer be considered safe.

Classic examples of moderate financial instruments include:

securities placed by highly reliable companies;
investments in microfinance organizations;
more profitable mutual fund units.

Aggressive

An aggressive investment strategy implies the most high profitability above 45–50 percent per annum. In practice, profitability can be several orders of magnitude higher than the stated values. Sometimes it reaches 100, 300 and even 1000% per annum.

It is obvious that when working with such hyper-aggressive financial instruments, the investor faces prohibitive risks. In some cases, their values approach the absolute, that is, 90 or even 100 percent.

We can consider classic examples of aggressive financial instruments:

financial pyramids;
investments in PAMM accounts.

Mixed

Any truly successful investor will tell you that it is impossible to consistently make a lot of money using any of the strategies mentioned above in their pure form. You should seek and find balance in everything. Mixing in certain proportions, the listed types of investment strategies help to find that golden mean.

A mixed investment strategy is an optimal combination of several types of financial instruments that differ in profitability and riskiness.

Conclusion

As we now understand, the first priority of each investor is to formulate his own optimal investment strategy that will best match his unique psychological profile. Naturally, there is no ready-made recipe here and cannot be. Moreover, it may take years of continuous practice to find the only correct answer.

But what should a beginner who does not yet have any serious theoretical knowledge and experience do? How should he create his first investment portfolio?

For such a case, there is a classic option for diversifying investments. In accordance with it, the investment portfolio must be formed from the following financial instruments:

conservative (55–60%);
moderate (30–35%);
aggressive (5–10%).

Based on the listed characteristics of investment strategies, such a combination seems quite safe and at the same time quite profitable.

Tell us about your investing experience in the comments. I'm sure other readers will find it very interesting.

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A financial investor is physical or entity investing in securities on financial markets. In other words, an investor engaged in .

As we have already found out, financial investors earn money by investing in securities. The tool they use is .

An investment portfolio is a set of securities that allow you to carry out the tasks that financial investor I set it in front of myself.

It is worth noting that every financial uses its own investment strategy and pursues individual goals and that is why each investor has a different set of securities included in his investment portfolio. All securities in the portfolio differ in levels of profitability and riskiness, as well as liquidity. The optimal ratio of securities in the portfolio reduces the financial investor and allows you to receive a stable profit.

Before starting an investment, everyone financial investor must decide on a strategy. The success of investments directly depends on compliance with the chosen strategy.

Based on the chosen strategy, the following types of financial investors are distinguished:

aggressive financial investor
conservative financial investor
moderate financial investor.

Aggressive investor

Aggressive investor, as a rule, is motivated by the goal of maximizing income.

It trades primarily in stocks, futures and other high-yield securities and instruments with increased risk. Aggressive financial investors

They take on a high level of risk for their own investments, and often, an aggressive investor’s portfolio does not contain securities with a high level of reliability. Such investors are not afraid of innovative and fresh ideas and solutions. They are actively exploring new markets, new investment projects And investment ideas

. In other words, they actively participate in the search for new highly profitable sources of investment. This investment strategy performs very well in short term

. The purpose of such investments is to quickly make a profit.

. The purpose of such investments is to quickly make a profit. Conservative investor , on the contrary, the main goal is reliability.

own investments He is not chasing big income, for conservative financial investor

It is more important to preserve your capital.

The object of investment in this case is the most liquid and reliable assets. For example, government securities, bonds and shares of large stable corporations, etc. In most cases conservative investor makes its investments in long term basis

, this is also one of the factors in reducing investment risks.

This investment strategy is suitable in times of uncertainty in the markets, in times of crisis and instability.

This investment strategy is suitable in times of uncertainty in the markets, in times of crisis and instability. tries to maintain balance in its investment portfolio by combining various securities with varying degrees of reliability and profitability.

The object of investment is government securities or shares of large, well-known and stable companies and corporations.

This gives the investor the opportunity to avoid bankruptcy and reduce their risks as much as possible.

Of course, along with speculators and pure investment, a considerable part of investors are engaged in both. INVESTOR AGGRESSIVE

An aggressive investor is an investor who is willing to take risks in order to receive high dividends.

An aggressive investor is a recipient of securities who is willing to take risks for the sake of high dividends.

AGGRESSIVE INVESTOR - see AGGRESSIVE INVESTOR

Depending on their attitude to expected return and risk, investors are divided into three groups: conservative investor, moderately aggressive and aggressive. For each of the groups, the most significant indicators are identified, which have the greatest influence on the choice of investment object.

Note that the combination of “high profitability - high risk” is classic in its essence. An aggressive investor, gravitating towards the specified combination of profitability and risk factors, nevertheless strives to reduce risk through insurance. In Russia, there is practically no investment risk insurance system, just like

The mid-growth portfolio is a combination of the investment properties of the aggressive and conservative growth portfolios. Along with reliable securities, this includes risky stock instruments. At the same time, average capital growth and a moderate degree of investment risk are guaranteed. The most popular portfolio among investors who are not prone to high risk.

These objectives may be alternative and appropriate for different types of securities portfolios. For example, if the main goal is to earn interest, then preference may be given to an aggressive portfolio consisting of low-liquidity and high-risk securities of young companies, which, however, if things go well, can bring high interest rates. Conversely, if the most important thing for an investor is to ensure the safety and increase of capital, then the portfolio will include securities that have

Let's say an investor owns shares of company A and company B, i.e. The investor's portfolio includes shares of two companies. However, Company B has been around for several decades, is in a stage of mature growth, generates significant cash flows and is known for its high stability in the amount of dividends paid. Company A is a newly formed venture capital firm characterized by aggressiveness, rapid growth, and extreme volatility in earnings and dividends. Based on statistical observations carried out over a number of years, the probabilities of obtaining one or another level of return on the shares of these companies are known. Characteristics of possible rates of return and the probability of achieving them are given below

As a rule, an investor constantly changes the type of portfolio based on stock market conditions and strategic goals. Specific portfolio strategies (aggressive, moderate and conservative) are determined by the following circumstances

An aggressive investor seeking to obtain maximum income from his investments purchases shares of industrial joint-stock companies (corporations). A conservative investor buys primarily bonds and short-term securities. Having a low degree of risk (Table 8.1).

Situation 2. The company has in its securities portfolio shares of enterprises engaged in the production, transportation and sale of petroleum products and shares of enterprises producing chemical products based on petroleum products. This portfolio of financial investments can be considered aggressive and risky. All issuers are links in a single technological chain for the production, transportation, processing and sale of oil and petroleum products. The bankruptcy of one of the enterprises will inevitably lead to the collapse of the others, which means for the investor the loss of financial investments.

World practice provides for a more detailed differentiation of the types of potential investors: 1) conservative 2) moderately aggressive 3) aggressive 4) experienced 5) sophisticated. The main types of investors are shown in table. 16.1.

The goal of conservative investors is investment security. Moderately aggressive investors strive not only to preserve their invested capital, but to receive income on it, albeit small. Aggressive investors are not satisfied with interest on invested funds, but try to achieve capital growth. Experienced investors will try to ensure profit, an increase in capital, and liquidity of securities, i.e. their rapid implementation on the market if necessary. The goal of sophisticated investors is to achieve maximum income.

Aggressive investor. This term characterizes a business entity that selects investment objects (instruments) according to the criterion of maximizing the current investment income, despite the high level of risk that comes with them.

The objective reason for the increased concentration of capital lies in the actions of aggressive investors and speculators with the aim of taking over corporations. To counteract the corporation, appropriate measures are being developed, called shark repellents. To make a takeover unprofitable, the corporate executive's contract includes terms requiring the acquiring investor to pay high bonuses to the ousting executives. These are the so-called golden parachutes.

It is generally believed that a widow is a more conservative investor, while a student is a more aggressive one. In other words, we should expect that the widow is primarily interested in the security of the income from her investment; we might expect the student to be willing to take risks, hoping for a higher return.

Buying bonds is optimal choice for an investor whose main goal is stable current income and high reliability of investments (bonds are classified as financial instruments with a fixed income). Thus, conservative investors buy bonds with the intention of receiving a constant income until the maturity date and then paying back the principal amount borrowed. However, they are not immune to inflation risk and depreciation of a fixed amount interest income. More aggressive investors use bonds to realize trade deals, pursuing the goal of obtaining the maximum possible income by selling bonds at a price higher than their purchase price. The value of a bond issued when market rates were high increases in value during a period of decline. interest rates, as the number of investors who want to purchase a financial instrument whose yield is higher is growing current rate. Therefore, in such a situation, selling a bond at an increased price (with a premium) will bring its holder greater profit than if he decided to wait for its maturity. The opposite is also true: if market rates rise, selling bonds at a reduced price (with a discount) will mean losses for their holder.

Another, more complex method is to analyze each trade (tick) and constantly recalculate the index, multiplying the amount of price change by the number of shares (contracts). Some analysts prefer to analyze only major transactions(over 10,000 shares), believing that they are being made by well-informed, sophisticated investors whose aggressiveness is determined by the price concessions they are willing to make. Another group of analysts also takes into account price changes and volume, but calculates the index based on the results of the entire trading day. In this case, the daily price change is multiplied by the trading volume of a given day(see Fig. 5.2).

The priority of certain goals determines the type of portfolio. For example, if the investor's main goal is to ensure the safety of investments, then. In his conservative portfolio, he will include securities issued by well-known and reliable issuers, with low risks and stable average or low returns, as well as with high liquidity. On the contrary, if the most important thing for an investor is to increase capital, then preference will be given to an aggressive portfolio consisting of high-risk securities of young companies. Conservative investors include many middle-aged and elderly people, as well as most institutional investors, investment funds, pension funds, Insurance companies and etc.

He applied his theory to the merger boom of the late 60s and made money, by his own admission, in all weathers. At first, he oversaw a merger bacchanalia that inflated company profits and impressed large institutional investors. Soros believed that the bias of overly aggressive managers would inflate the stock prices of the merged firms. He actively bought these shares. And then he sold them and made good money in the recession that soon followed.

Finally, the price reaches the levels calculated by seasoned investors. They are starting to divest assets. They act as carefully as they did when purchasing. At the same time, the asset still remains a “hot cake” and investors do not experience problems with liquidity. Newspapers and television are shouting with all their might about the finest hour of the underlying asset and the fall of the quoted currency, predicting its imminent death and describing the options and advantages of alternative investments. By this time, seasoned investors had almost sold their volumes. The majority of players perceive a slight decrease in price as another correction and rush to buy more. Suspecting something was wrong, other savvy investors and speculators decide to take profits when the price approaches its maximum values. It is not surprising that the price rises towards the peak reached again, perhaps almost reaches it or even slightly exceeds it, but then begins to fall sharply. At this stage for most experienced investors the game is already done and many of them are looking for other assets (read - “leaving”), and the most aggressive ones are generally selling. As a result, supply increases, demand decreases, and sometimes disappears altogether, because everyone who wanted to buy has already bought. In Figure 9.1. the moment of peak formation is shown.

The only critical change in trend occurs in the V 09 depression. Without applying the entry rules, the most aggressive investors will receive a direct buy signal. When the market falls rapidly from the W09 trough, we understand how important it is to work with the stop loss rule, no matter how promising the trend reversal signal may look. On the other hand, the trend reversal at the W10 bottom shows how far from the stop loss levels the entry point can be placed if a conservative entry rule is applied after the time Fibonacci target is reached.

This approach is conservative because it has the disadvantage that a change in trend may be completely missed if instead corrections a-b-c a strong trend reversal occurs. More aggressive, willing investors may do better by placing an order before reaching a point where the closing level is higher top level day with the lowest level (and vice versa for a sell signal), as shown in Fig. 3-13.

As already noted, an important type of investment in Russia of available funds is investment in securities, that is, management of a portfolio of securities, which includes planning, analysis and regulation of the composition of the portfolio, work on its formation and maintenance in the interests of achieving the goals set for it while preservation required level its liquidity and minimizing expenses associated with the portfolio. Let's look at this in more detail. The goals of investing in securities are to earn interest, preserve capital, and ensure capital growth based on the increase in the market value of securities. They can be alternative and correspond to different types of securities portfolios. For example, if the priority is to earn interest, then preference is given to aggressive portfolios consisting of low-liquidity and high-risk securities of companies, which, however, if things go well, can bring very high interest. If the most important thing for the company is to ensure the safety and growth of capital, then the portfolio includes securities with high liquidity issued by well-known investors with low risks and pre-expected average interest payments.

An aggressive rational investor fits an isoline with smaller

AGGRESSIVE INVESTOR - a buyer of securities who is willing to take risks in order to receive high dividends. Usually buys shares.

The difference in objects in the composition of the investment portfolio, investment goals, attitude to risk and other conditions determines the variety of types of investment portfolios. At the same time, the main classification criteria The object of HHBI station is the nature of the formation of investment income, attitude to risks, the degree of liquidity of the portfolio, conditions of taxation of investment income, etc. The type of investment portfolio reflects the type of the investor himself (aggressive, moderate, conservative).

Certain differences also arise in the formation of the rate of return on invested capital. If for real investments this indicator is mediated by the level of upcoming operating profit, which is formed under the conditions of objectively existing industry restrictions, then for financial investments the investor himself chooses the expected rate of profit, taking into account the level of risk of investments in various financial instruments. A cautious (or conservative) investor will prefer the choice