New to Investing? Here’s How to Find the Style That Fits You

When I first entered the world of investing, I felt overwhelmed and confused too.

There were so many different strategies - and even more opinions.

Some people talked about buying “cheap” stocks. Others were chasing fast-growing tech companies. And some said, “Just buy the whole market!”

So…how do you figure out which investing style is right for you?

Let’s break it down, simply.

First, what is an “Investing Style”?

An investing style is just a way of choosing how you invest your money.

Think of it like fitness. Some people like running, some prefer swimming, others enjoy yoga. There’s no one-size-fits-all...it’s about what works for you.

Investing is the same. Some styles are fast-paced. Some are slow and steady. Some take more time to research. Others are low-maintenance.

Here are the main ones:

1. Value Investing – Finding “good deals”

This is like shopping for great brands during a big sale. Value investors look for companies they believe are worth more than what they’re currently priced at.

They’re patient and happy to wait for the price to go up over time.

💡 Good for people who enjoy researching companies and have a long-term mindset.

2. Growth Investing – Betting on future winners

These investors look for companies that are growing super fast - like exciting tech startups or rising consumer brands (think Nvidia or Pop Mart).

These stocks may not be cheap today, but they could grow a lot in the future.

💡 Good for people who believe in innovation and are okay with short-term ups and downs.

3. Passive Investing (Index Funds) – Keep it simple

Instead of picking individual companies, you invest in the whole market - like the S&P 500—through a fund.

You own a little piece of many companies. It’s low-cost, low-effort, and great for beginners.

💡 Good for busy professionals or anyone who wants to grow wealth steadily without watching the market every day.

4. Dividend Investing – Get paid regularly

These investors choose companies that pay out part of their profits to shareholders, called dividends.

It’s like getting a small paycheck while holding the stock.

💡 Good for people who want passive income or are planning for retirement. Dividend stocks can help create pension-like cash flows.

5. Thematic or Sector Investing – Follow your interests

You can invest in industries or themes you care about - like clean energy, AI, or healthcare.

It’s a way to support causes you believe in and learn along the way.

💡 Great for curious minds who want to align their investments with values and future trends.

6. Active Trading – Buying and selling often

Some investors try to make quick profits by watching price charts and trading frequently.

It takes skill, time, and a lot of learning - and can be stressful.

💡 Not recommended for beginners. It's like trying to win a game before learning the rules.

But wait...have you thought about your Risk Profile?

Before choosing an investing style, it's important to understand your risk profile.

This is just a fancy way of saying: How much risk can you handle when investing?

It has two parts:

1. Your Ability to take risk

This is about your financial situation.

·       Do you have a stable income?

·       Do you have an emergency fund?

·       Are you investing for the long term?

The more stable your finances, the more risk you may be able to take.

2. Your Willingness to take risk

This is about your personality.

·       Do you panic when the market drops?

·       Are you okay seeing your investment go down (temporarily)?

·       Or do you prefer to play it safe and sleep well at night?

Some people can take more risk, but emotionally they prefer not to - and that’s okay. The goal is to find a style that fits both your ability and your comfort level.

Want to check in on your own risk profile?

🎯 Here's a simple tool to help you check your willingness to take risk - based on your personal risk tolerance and money mindset. Click here to check your risk profile

📖 Prefer to read more? Here's a blog post I wrote that dives deeper into understanding your risk profile.

Knowing your risk profile is a great first step before choosing your investing strategy.

Start simple, stay curious.

You don’t need to figure it all out today.

The most important thing is to start learning. Read. Ask questions. Try with small amounts.

The earlier you start, the more confident you’ll become.