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Investing

Risk tolerance measured by past behavior, not a slider you drag on a calm Tuesday. Would you actually sell in a crash. Do you know what your fees cost.

About the archetypes

Every brokerage asks you to rate your risk tolerance on a slider on a calm Tuesday, and every brokerage gets it wrong. The investing archetypes here are built from past behavior instead. What did you actually do in the last drawdown. Do you look at your accounts weekly or annually. How do you feel when a friend brags about a trade.

The four we keep sorting people into look like the Patient Compounder, the Contrarian, the Growth Seeker, and the Defensive Preserver. Two of those tend to compound quietly for decades. One makes exciting stories at dinner. Guess which.