But that's not always the case. The perfect investment for you is not determined solely by the characteristics of the investment-your psychological needs and your personality are important, too. When your personality and sound judgment are in sync, chances are you'll have better results.
Most people think of risk tolerance when they think of matching personality to investment.
But risk tolerance is only one of many personality traits to consider before you create and mold an investment portfolio with which you will feel comfortable. Other personality characteristics, such as confidence, trust or pride also enter into the equation and make an impact on how satisfied you feel with your investing. Matching investors with investments is a complicated task-even without personality considerations. In addition, you have to consider how much control you have over the investment, and how much control you want. The influence you have on the outcome of an investment varies dramatically from investment to investment.