What are the differences between defensive and aggressive investing?

What are the differences between defensive and aggressive investing?

Defensive investing focuses on minimizing risk and preserving capital, while aggressive investing aims for high returns with higher risk.

Can you give me examples of each type of investment?

Sure! Defensive investments include bonds and blue-chip stocks, while aggressive investments might be tech startups or cryptocurrencies.

Which strategy is better for a beginner investor?

For beginners, defensive investing is often recommended as it helps to build a stable foundation without taking on too much risk.

What are the risks associated with aggressive investing?

Aggressive investing can lead to significant losses, especially in volatile markets, and requires a higher risk tolerance.

How can I transition from defensive to aggressive investing?

You can gradually increase your exposure to riskier assets as you gain experience and confidence in your investment strategy.