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Speculators are aggressive risk investors which are the ones that have deep understanding in the market dynamics. You are able to take on large amounts of risk and tolerate violent movements in your portfolio. Speculators with aggressive risk tolerance usually go for riskier asset classes such as stocks, penny stocks, cryptocurrencies, and profit greatly when the market performs in your favor. you are complacent to massive selling in times of market panic.

Moderate risk traders are relatively risk-tolerant. You are able to take on risk to some extent and usually have a fixed percentage up to which you can see your portfolio in the red. You invest a portion of your money in risky assets such as stocks, ETFs, forex and the remaining in safer assets such as bonds or low volatility stocks. You usually invest with a 60/40 asset allocation between risky and safe assets. If the market performs well, you take a lesser cut of the pie than the speculators, but during downturns in the market, your portfolio suffers lower losses as well, which is a totally acceptable approach for you as a trader.

Conservative traders are the lowest risk-taking traders out there. You are hardly able to take any risk and go for the safest assets that you can find. You are more concerned with avoiding losses than getting higher returns, The fact that low risk usually means lower returns is concerning but not motivating you for any action. You invest in assets such as bonds and bank fixed deposits, etc where you think you can guarantee capital preservation.