This type of investor wants convenience above all else. Everything is set on autopilot. Automatic contributions to investment funds come out of every paycheck. This type of investor doesn't spend much time or effort thinking about investing, and doesn't need to since everything is automatic. They don't have to remind themselves to invest; it's all done by computer.

The potential downside for this investor is losing touch with where the funds are going and how the portfolio is performing. If you are not paying attention, you may not have investment selections that meet your current goals, and you may not identify and remove low performing investments or funds with high fees. If you don't check in at least occasionally, this hands-off approach may cost you. Rebalancing your portfolio once or twice a year by transferring funds to maintain your desired proportions of stocks to bonds should be sufficient to keep your investment portfolio on track.

The tape watcher is paying attention. They know if the stock market is up or down. The current market price and chart is only a tap away on their phone. This type of investor knows how much their portfolio is worth and worries about how much they are losing when the market has a bad day. Nothing gets past the Tape Watcher.

The risk for this type of investor is that he or she can easily get stressed out by day-to-day ups and downs in the market. They may even get discouraged when the market is going down and decide to sell when prices are low — bad idea. It's good to be informed, especially when it comes to your investments, but if you find yourself too glued to the market's daily performance — it might be a good idea to step away from the news for a bit. Checking in on the stock market and your investment portfolio quarterly is probably enough, and you can use the time you save for something more productive and enjoyable.

The stock jockey is constantly looking for action. This type of investor tries to time the market by betting that a stock is going up before other investors realize it — and then selling when it is near the peak price before most investors figure out that it is going down. This type of investor pores over market and economic data, reads business articles, and is well-informed about business trends and news. He or she is willing to take risks for a chance at big returns.

If you're a Stock Jockey, be careful; you can easily lose significant money if your timing is off. Trading fees can also get expensive if your investment approach requires making a lot of trades. You are much more likely to make money from buying good stocks and holding them for the long haul.

This is the kind of investor that loaded up on GM stock when it was $1 per share in 2009. Of course there is risk that bargain stocks could become worthless, but there is potential for the stock price to bounce back. The bargain-bin investor looks carefully at P/E ratios to check the share price relative to earnings per share when deciding what stocks to buy.

Bargain-bin types should be wary though — sometimes stocks with low prices are trading at a low price for a good reason. The bigger the bargain, the more research is needed to find out why the price is so low.

Technicians love charts. They base most of their buy and sell decisions on what they see in the charts. Technical investors share some characteristics with other investors, but they tend to analyze the numbers and read the pundits rather than reacting to every market move. They may spend a lot of time on their computer screens, but feel that their diligence is rewarded if they spot a trend earlier than others. Their desire to get an edge on the markets often leads them to buy the latest technology. These active investors are very involved with the management and choice of their investments.

The emotional investors put their heart into their investment decisions, not their head. For example, they are likely to invest in companies because they use and like the firm’s products, regardless of the stock’s performance, or to hold onto real property in a depressed neighborhood for sentimental reasons. They can be a blend of active and passive in their approach, eager to make investments they feel committed to, but unwilling to let go of those that have outlived their value.

These informed investors tend to take a well-rounded approach. They are careful to stay up to date, using a variety of sources to fill in their understanding. While confident of their own financial acumen, they also are willing to listen to the advice of experts, and to act decisively. Often high achievers in their professional lives, they typically have a strong work ethic and may seek the same sense of control and accomplishment in their investments.