The Independent
The Independent is an investor who has original ideas about investing and likes to get involved in the investment process. Unlike Followers, they are not disinterested in investing, are quite engaged in the financial markets, and may have unconventional views on investing. This “contrarian” mindset, however, may cause Independents to not believe in following a long-term investment plan. With that said, many Independents can and do stick to an investment plan to accomplish their financial goals. In essence, Independents are analytical, critical thinkers who make many of their decisions based on logic and their own gut instinct. They are willing to take risks and act decisively when called upon to do so. Independents can accomplish tasks when they put their minds to it; they tend to be thinkers and doers as opposed to followers and dreamers.
BASIC ORIENTATION
Engaged in the investment process and opinionated on investment decisions
DOMINANT BIAS
Cognitive, relating to the pitfalls of doing
one’s own research
IMPACTFUL BIAS
Confirmation and availability
INVESTING STYLE
Active
RISK LEVEL
Generally above average but not as high as aggressive investors
Credit to Michael Pompain’s “Behavioral Finance and Investor Types”, © 2012 CFA Institute