What Kind of Investor Are You

We all know that investing is important. However, if you’ve never done it before, it isn’t the kind of thing that you should rush into. Instead, you want to consider who you are, what kind of an investor you are, and what kind of investing you feel comfortable with. Committing to thinking about these things can really help you to make investments you’ll feel good about.  

Think About Yourself
First things first, you’ll want to do some thinking about…yourself. A little self-assessment can be super helpful in determining the type of investor you will be. You’ll want to think about things such as:

l  How you make decisions/what kind of timeframe you need for doing so

l  Whether you prefer hands-on advice from a financial adviser or just a little guidance here and there as needed

l  How you handle disappointments and anxieties, both of which are common in the investing world

If, based on your self-reflection, you find that you are someone who likes to be in control of your investments and involved in them, then find a financial adviser who will respect that about you and give you plenty of room to make your own choices.

If you’re not someone who feels comfortable making big financial decisions yourself, that’s okay. You can hire a financial adviser who will do all of the hard work for you and even help you to lessen risk if that makes you nervous.


Really, no matter what kind of investor you are or what your preferences may be, a good financial adviser can be extremely beneficial. In fact, they’re so beneficial that you really shouldn’t try to “go it alone” with your investments. No matter how brave you are or how comfortable with risk, it’s still just plain smart to get expert help.

What You Need to Know about Stock Splits

If you are an investor in the stock market or are thinking of becoming one, then you should be familiar with the term “stock splits” and what it means. It is not at all uncommon for large corporations to split their stocks, sometimes several times over, and this sometimes makes investors nervous. However, there really is no reason to be nervous, especially not if you understand what stock splits are and how they affect you and your investments.   

Understanding Stock Splits

Basically, what a stock split does is to lower the price of shares without affecting the ownership interests of investors. In other words, when a company chooses to split stocks, you won’t lose any of your stock; its value will stay the same, but it will be divided into more and smaller stocks but still totaling the same value. So, as you can see, if a stock split occurs with a company you have a stake in, you really have nothing to worry about.

Why Do Companies Split Stocks?

Even though you will not be negatively affected by a company that splits stocks, you may be wondering if it’s a sign of some kind of trouble within the company or if it means that you should “get out while you can.” Thankfully, though, the opposite is true.

Companies tend to split stocks when their shares have gotten expensive and they’re hoping to re-introduce liquidity into the market and make their stocks more affordable to investors, all in an effort to get more invetors.

In other words, splitting stocks is a sign that the company you have invested in is doing quite well and that you’ve made a great choice, which is why you shouldn’t worry one bit if you hear that a company you’ve invested in is making this move. Instead, you should celebrate and congratulate yourself (or your broker!) on a well-chosen investment.

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Letting Go of Losing Investments

There’s a famous saying that basically states that you have to know when to “cut your losses.” That means that there does, sometimes, come a time when you have to own up to a less than perfect choice and the consequences that go along with that choice. Plus, sometimes, things just don’t go the way they were expected to, and you have to be willing to give up, even if it goes against your nature. These rules apply strongly to investments. No matter how careful of an investor you are, you are going to undoubtedly have some poor performers or downright losers in your portfolio, and it’s important to know when to cut them loose.    

Letting go of those losing investments doesn’t always mean losing money, however. In fact, sometimes it means just the opposite. You can often sell poor stocks for a nice tax break or a capital gain. Plus, just because you’ve given up on a particular investment doesn’t mean everybody else has. Those stocks and other investments that aren’t doing you any good may be just what some other buyer is looking for, so don’t hesitate to sell if a particular investment just isn’t getting you anywhere.

Of course, if your portfolio is filling up with lots of losers, instead of just one or two, then you’ve got bigger problems on your hands. To avoid ending up with a bunch of losing investments in the first place, invest smart. Call on an investment advisor for assistance and mostly avoid individual stocks and instead go for a diverse mix of exchange traded funds and mutual funds. With the right guidance, you might find that you don’t have to worry about cutting your losses because you don’t have any to begin with.

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