Search the Internet for a “Risk Self-Test”(there are many out there) and take the test. Typically there are three possible outcomes (“Risk Profiles”): Low, Average,and High. Once you have taken the test go to the appropriate thread (“Low Risk”,“Average Risk”, and “High Risk”) and discuss whether you are surprised by the outcome of the test (please remember that there is no right or wrong here) and what kind of investments you would invest in.
Please do NOT look at the Discussion Threads that do not apply to you and definitely do not contribute to it.However, once the discussions are over you definitely should look at the other threads and compare to your own discussion. Why I strongly suggest that you do not look at other threads during the discussion is because only when the discussions are “uncontaminated” (so when there is no spill-over from one type of risk level to the other) the comparison is genuine and educational.
Note: In order to receive full credit for this discussion, besides the standard rules, you will need to propose at least one potential investment for your particular risk profile.
Make sure to be medium risk
I took a few different tests and was unsurprised to get a moderate score on each of the exams. I consider myself a risk-taker, but only if I am confident in the company or industry I am investing in. I will not simply take a risk for the thrill. Similarly, I do not invest in any low risk assets because I do not find any enjoyment in that decision. That makes me a moderate sensation-seeker, or someone that enjoys a thrill but nothing too crazy.
My portfolio would involve a strategy of maximizing risk-return ratio. I am able to take risks if the payout is large enough, and I am able to cope with losses at times. An example of a trade I would make would be to purchase a stock or commodity at $100 that I believe is undervalued that I have researched. I believe that the stock will rise to $120, so I stand to make $20. I would then place a stop loss at $90, just in case I am wrong about the company. In this scenario I stand to lose $10 or make $20, but I am confident in my own decision.