Newcomers
They are usually first-time investors with very little experience in investing. They are aware that to achieve their financial goals they need to save and invest. Sometimes, in their eagerness to invest, they get guidance from the wrong source of information or people, then make mistakes which could have been avoided, or worse still, fall prey to investment scams.

Ringgitman's advice:
Learn about investment and investing from the right people, like licensed persons. Be careful of investment opportunities that promise high guaranteed returns. Be patient. If you have any doubt, do not act impulsively . Instead, invest some time in learning about prudent investing.

Cautious Investors
These avoid high-risk investments. They will think a great deal before investing and will spend some time to understand the products they want to invest in. Usually, they don't expect high returns and will invest in investment products with stable or guaranteed returns which preserve their investment capital.

Ringgitman's advice:
Carefully review investment products that promise guaranteed returns. Look beyond the colourful brochures. Read the fine print of the prospectus. Don't just assume that investments with “guaranteed return” or “capital preservation” are without risks. At the same time, be careful of investment opportunities that promise high guaranteed returns with no risks. These could be investment scams.

Punters
These are essentially high-risk takers. Generally, they are prepared to lose money in their investments. They are easily attracted to “hot tips” and market rumours. They go for capital appreciation and will try to make profits as quickly as possible. Most of the time, they base their investment decisions on instinct or “gut feeling” rather than the right information. Due to this, they sometimes have difficulty disengaging themselves from bad investments or cutting losses because their instincts tell them not to.

Ringgitman's advice:
When investing, it is the right of an investor to take risks, no matter how high the risks are. But the investor should be aware of the consequences. Relying on instincts is not the best way to make investment decisions. Remember, no amount of rumours and tips can replace the reliability of facts and figures in investment decision-making.

Passive Investors
They often believe that once they have invested, responsible people will take care of their investments or the investments will take care of themselves. These group of investors rarely or never monitor their investments. They will not read documents sent to them relating to their investments, like financial statements, annual reports or contract notes. They remain oblivious even when there are problems or developments that may adversely affect their investments.

Ringgitman's advice:
Start taking charge of your investments and do not leave your investments unmonitored. Don't assume that things will be fine all the time. Constant monitoring will allow you to reconsider your investments, especially if they no longer fulfil your financial objectives.

Ringgitman's advice:
Keep up with the good investing habits! If you think you're not this type of investor and it's too difficult to be one, don't be disheartened. It is simpler than you think and it just takes the will to learn. Take your first step by reading the Malaysian Investor website.