Bullish market. As an observer of capital market, and our investors won’t remain silent, there is the possibility for large profits and hope for more. There are many types of investors in the capital market. These include those who simply follow the trend and those who invest through technical or fundamental analysis. There are many types of forex market investors. Each investor is different due to their investment style.
- Fundamental investor: This type is very focused on accuracy in financial calculations. They are able to see that stock prices will rise if financial statements are positive. They believe stock prices should be equal to their value and will purchase shares if they are satisfied with the financial results.
- Technical investor: These investors strongly emphasize stock price trends and market psychology. They believe that price and value are not in a relationship and therefore buy shares based upon the price trend signal.
- The following types of investors are based on rumors: These investors lack fundamental and technical knowledge and participate in the selling and buying of shares through friend whispers and forums. This investor believes that price and value have a relationship and will buy shares if the story is true.
- Momentum investor This investor is very similar to a technical one. By looking at the price trends, the strength and value of transactions, and the fact that it is right to buy shares, this investor does not see any relationship between the prices and the share’s value.
- This is the type of investor who invests in a company based on its business growth. A similar to fundamental investors, they see a company by prioritizing sales prospects and business competition maps. They argue that stock prices and stock purchasing factors, along with stock price, are determined by a company’s business prospects.
- Investor Speculation This type is what we see most in the capital markets. While a comparison between institutional and retail investors is difficult to make, it is a clear indication that this type of investor can be very risky as they often don’t have a trading plan. It involves elements of risk and reward when buying shares.
- Types of investor value investing: These types of investors heavily rely on intrinsic value. They follow the Buffet way and understand that the price should not be lower than the company’s value. They will first dissect the assets, equity, and company debt, as well as how their business prospects and company management are.
Each of these can help you succeed in your investment, particularly in stocks. However, simple research can increase the risk and make your investment more costly.