RISK TOLERANCE · ACTIVE
Active
Accepts considerable swings for the return they expect
My risk tolerance score
61~80 pt band
Active
out of 24 → on a 100-point scale
- 0~20SafetyPrefers to avoid any situation where the principal shrinks
- 21~40CautiousA little swing is fine, but a big break is not
- 41~60BalancedWeighs the chance of gains and the chance of losses equally
- 61~80ActiveAccepts considerable swings for the return they expect
- 81~100AggressiveDislikes missing an opportunity more than big swings
What it means
You go in knowing a loss is possible. You treat an account swinging up and down for a while as part of the process and do not change your plan over short-term moves, because you judge that you have the time and the room to absorb it.
The risk in this band is not the loss itself but confidence. When a few calls go right, it starts to feel like skill, and from then on the size grows. As the size grows, a fall of the same percentage feels different. The amount behind a 20% fall you said you could bear and 20% after scaling up are not the same number.
The more weight you put on growth, the more there is to check: whether revenue is actually growing, whether that growth turns into profit, and how much debt grew along the way. Growth usually comes with debt.
Strengths of this style
- Does not let short-term moves shake the plan
- Can actually wait when waiting is needed
- Starts with the possibility of loss already in the calculation
Where people often stumble
- Easy to mistake a few successes for skill and scale up
- Drawn by a growth story, can skip checking the financials
- Does not work out in actual money the fall they said they could bear
When not to trust this number
A high score does not mean skill. Answering that you can bear something differs from having actually borne it, and this questionnaire measures only the first.
This score records your answers at this moment. Long-standing research on risk tolerance has pointed out again and again that the same person answers differently in rising and falling markets. Ideally the score would be the same whichever way the market moves, but often it is not.
Tolerance and capacity also differ. Saying you can bear a 20% fall is a very different thing from being fine if money you need in a year shrinks by 20%. Even with a high score, when you need the money comes first.
This questionnaire does not tell you what to hold or how much. Risk tolerance is the starting point of a decision, not its conclusion.
Metrics to check first in this band
More on Jupick
This assessment is reference content that describes an investing style. It is not a suggestion to trade any stock or product and not investment advice. Investment decisions and their responsibility rest with you.