I'm not sure I fall into either category. I think I'm more a Passive investor?
Passive investors adhere to a long-term, hands-off approach to investing, focusing on building a diversified portfolio of low-cost index funds or exchange-traded funds (ETFs) that track broad market indices. Rather than attempting to beat the market through active trading or stock picking, passive investors aim to replicate the performance of the overall market over time. They believe in the efficiency of markets and accept that it's challenging to consistently outperform the market in the long run.One key principle of passive investing is minimizing fees and expenses, as high costs can erode investment returns over time. Passive investors typically opt for low-cost index funds or ETFs that offer broad exposure to various asset classes, such as stocks, bonds, or real estate. By avoiding the expenses associated with active management, passive investors can maximize their net returns and benefit from the power of compounding over time.Passive investors prioritize asset allocation and diversification to manage risk and achieve their long-term financial goals. They spread their investments across different asset classes, sectors, and geographic regions to reduce the impact of individual stock or sector volatility on their overall portfolio. This diversified approach helps passive investors capture the overall market returns while minimizing exposure to idiosyncratic risks associated with individual securities.Overall, passive investors embrace simplicity, consistency, and discipline in their investment strategy. By maintaining a buy-and-hold approach and resisting the temptation to time the market or chase hot investment trends, passive investors aim to achieve steady, reliable returns over the long term. While passive investing may not offer the excitement of active trading, it provides a low-stress, low-maintenance way to participate in the growth of the global economy and build wealth steadily over time.
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