Over 8 Years of Investing – 4 Types of Investors I’ve Met
In more than 8 years of investing and talking with over 100 people from very different backgrounds, I realized one thing: your life starting point heavily influences how you approach the market. Not everyone thinks the same, and this “background” often determines which strategy they choose—or what mistakes they’re most likely to make in their first year.
1. The Educated, With Capital
These are people who spent 4–6 years in college, worked 5–10 years in corporate jobs, and have solid savings.
When they step into the market, they often prefer long-term dividend stocks or ETFs like VOO or QQQ. For them, the stock market feels like a “second paycheck”: steady, consistent returns.
Their main mistake? Many assume “just buy and hold forever.” They forget that one day, they still need to sell.
2. The Capital-Rich, Less Educated (Small Business Owners)
This was me back in the day.
Used to the “buy–sell fast” mindset, they quickly learn how to catch waves and swing trade. But they also keep a chunk in long-term plays because of common advice. The danger? If they happen to hold stocks like Enron, Intel, or eBay during a collapse, their long-term portfolio can lose 70–80% of its value.
This group often wins fast, but also loses painfully.
3. The Educated, Average Income
They’re working full-time jobs, earning under $5K/month, with maybe $500–$1,000 leftover after expenses.
Wanting extra income, they get drawn into day trading or options trading.
The risk? Their capital is too thin, but their expectations are way too high.
As a result, this group is usually the fastest to lose money in year one—because they don’t have the buffer to learn slowly.
4. The Blue-Collar, Hourly Pay
This is a group I respect deeply. They work tough, physical jobs, wages paid by the hour.
When they enter the stock market, their mindset is simple: buy–sell, keep the profit, reload if they lose.
They’re not afraid to lose 20–30% of their capital, believing they can always rebuild. They often trade like pros—using robot-like chart rules, candlesticks, 2h–4h swings—but without fully understanding the fundamentals.
The result? Losses, then reloading fresh capital to try again.
A Psychological Angle: BUY & SELL
Notice something? In stock investing, your very first action is to BUY—and only later do you SELL. These two words always go together, but they’re also a psychological trap for many beginners, especially those from professional careers.
Engineers, doctors, accountants… they’re used to stability and clear paths. They never had to calculate every single dollar because their paycheck came monthly. But in stocks, they suddenly face a different question: “When to buy? When to sell?”
That’s a shock.
They easily lose money because they’re used to thinking: “work hard, study more, results will come.” But the market doesn’t work that way.
- An IT engineer making $150K/year? At least 5 years of experience.
- A doctor making $300K/year? At least 10 years post-graduation.
Yet, many new investors think they can earn $5K–$7K/month just after a few weeks of books or YouTube videos.
That illusion leads to impatience—and it’s exactly why many blow up their accounts in the first year.
Final Thoughts
There’s no “right or wrong” group. But understanding which one you belong to helps you see your strengths and weaknesses to avoid common mistakes:
- The educated play safe but may miss opportunities.
- Business owners move fast but are easy to brainwash.
- Average earners are ambitious but too impatient.
- Blue-collar workers are brave but sometimes lack fundamentals.
⚠️ Disclaimer: This is only my personal perspective based on experience, not investment advice. Everyone must make their own decisions and take responsibility for them.