Sentences with phrase «emotional risk tolerance»

One of the items that any review of Wealthfront needs to address is the fact that your portfolio is based on your financial and emotional risk tolerance, and not strictly determined by a formula of potential returns and amounts you invest.

For example, if you have a high emotional risk tolerance, you might be drawn to day trading, stock picking, and other types of investing with the potential for high returns.

Not exact matches

FSI helps remove the emotional behavior and speculation involved with investment decisions and instead focuses on in - house research, your risk tolerance and your risk capacity.

While beta is backwards - looking (i.e. a stock with low price volatility historically will not necessarily have low volatility going forward), it is still helpful for investors to understand since we each have different risk tolerances and emotional tendencies.

If you have the emotional (as well as financial) risk tolerance to enjoy a more exciting style of investing, it might work for you.

In this article, we'll discuss how to establish your risk tolerance to avoid one of the biggest mistakes when it comes to investing: making emotional decisions!

A number of academic studies have also shown our risk tolerance is influenced by many factors, including the words used to describe an investment, our emotional state, prior market performance, and even our last meal.

Your willingness to tolerate risk — also called your psychological risk tolerance — introduces the emotional side of investing.

So, the heart of risk tolerance is still our subjective «willingness» or our emotional ability to take on the risk, even if that risk is objectively small.

If you build a portfolio that doesn't match your risk tolerance, it can be harder to avoid making emotional decisions with your investments.

Ensure that you complete the online questions carefully and accurately, and that your answers reflect your circumstances and risk tolerance, including the financial and emotional aspects of potential losses in the event of a market downturn.