Do you have what it takes to be a successful investor?
Not everybody has what it takes to invest in stocks and shares. Do you? Take our deadly serious questionnaire and find out.
1. You've just read Bruce Jackson's warning that stock markets could fall 20% this year. Do you think:
a) That might happen, but I'm not expecting to cash in my investments for the next 10 or 20 years, so it shouldn't really affect me.
b) Instantly sell your Chinese, Latin American and Indian exchange traded funds and prepare to buy them back at a cheaper price.
c) Sell every share you own, put your house on the market, and pour all the proceeds into gold.
2. A friend points out that banking shares are up to 90% off their peak and must be a good turnaround bet. Do you:
a) Tell him that the accounts of the big banks are so confused and murky it is impossible to gauge their true value, and you're an investor, not a gambler.
b) Confess that you thought the same thing when you threw money at Lloyds Banking Group (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS) back in October, and took a 30% haircut.
c) Embark on a foam-flecked rant about how the banks have destroyed the economy, they should all be fully nationalised, and you don't want another penny of your money to fund those obscene banker bonuses.
3. You log on to your online share account at 8.01 am and see that two of your stocks appear to have risen 5,000% overnight, instantly earning you hundreds of thousands of pounds (it happened to me). Do you:
a) Remember that online pricing can be a bit erratic first thing in the morning, and log on a bit later for the inevitable letdown.
b) Decide it isn't a technical malfunction but a sign, and immediately start hunting for stocks that really will rise 5,000% overnight.
c) Think: "Wow, this lark is easier than it looks, at this rate they'll have risen 10,000% by lunchtime and I'll be a multi-millionaire!" Then rush out to buy a Daimler.
4. Uncle Arnie pops over for Sunday lunch and tips you the wink on an AIM-listed tech minnow with a big future ahead of it. Do you:
a) Examine its company report and sector prospects, before concluding that uncle Arnie had downed one too many brandies.
b) Decide this could be the 10-bagger you've been looking for, and it might be worth taking a punt with a few grand.
c) Plough every spare penny into the stock the moment markets open on Monday morning, and damn the bid/offer spread.
5. Somebody points out that stock markets are still well down on their peak 10 years ago, and investing is a mug's game. Do you:
a) Explain that you have been drip feeding money into the market over the past 15 years, and are nicely in profit.
b) Claim you're a born contrarian, and that is precisely the reason why markets will do so well in the next decade.
c) Agree completely, and feel a lot happier with the 0.05% you are getting on your savings account.
6. It is 11am. You realise you haven't checked your online portfolio today. Do you:
a) Decide there is no need, your portfolio is nicely balanced and you don't have to bother about day-to-day fluctuations.
b) Log on immediately, and cheer for joy because that small cap you took a punt on is up 8% since breakfast.
c) Remember that you have actually checked your online portfolio three times this morning, but it won't do any harm to have another peek.
7. A banking collapse in China wipes out 30% of your investment wealth. Do you:
a) Feel a bit sad, but reassure yourself that they will bounce back by the time you retire.
b) Invest everything you own in China, because shares are 30% cheaper.
c) Cry like a wuss.
8. You recently read an article by Harvey Jones claiming The Pound Will Rebound, and notice that it subsequently has (a little bit, anyway). Do you think:
a) Any Fool can get it right sometimes, but you can't time currency movements any more than you can time markets.
b) Sell all your European funds on the assumption that the euro will continue to slide, and you don't want any investments in the same currency that Greek people use.
c) Believe that anything Harvey Jones writes in future must automatically be clever, wise and prescient, and invest accordingly.
How did you score?
If your answers are mostly "a", you're cut to be a sensible, Foolish investor, and you should make money over the longer term.
If your answers are mostly "b", you're aggressive and impatient, and either very rich, or one bad trade away from being broke.
If your answers are mostly "c", you shouldn't be let anywhere near an online share dealing account. Stick to cash…
More from Harvey Jones:
> Bonus question -- Do you have a Motley Fool Share Dealing account?
a) Of course, I love the fact trades cost me just £10
b) Not yet, but I'm going to open one today!
c) No thanks, I'd rather just throw my money away
