Investing as per your Risk Appetite

I have been on Reddit a lot lately and reading a lot of posts and with this I am seeing a lot of different view or trading styles. A lot of people are more inclined towards ETFs and they are happy with the returns they are generating with it. If I talk about the US ETF, a lot of people are discussing about which is the best portfolio for them. Like VTI or VOO for large cap and some small cap.

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But whatever is the case, they are happy with the returns they are getting with the ETFs and they will continue to invest in it. And then I am seeing a subreddit with the same RaodTo10Million where people are showing there portfolio and they are taking the risks using the options and want to reach to that position as soon as possible. A lot of people where showing their awesome portfolio as well as giving tips for the same. And there are few where they showed how they loss a lot of money because of the options.

So the thing is it's all about what is your risk appetite is to actually know your style of investing. If you are conservative, you always want to go with ETFs or Large Cap stocks to get 10 to 12% profit year to year basis. If you have more risk apetite you want to get more returns then the average index return and thus you will try your hands in swing trading or options.

Now the question is how you will know your risk appetite. You will know your risk appetite by asking few questions to yourself like what is your financial goals, what is your investment horizon, general reactions to market fluctuations and the amount of money if lost by you, there will be no change of your financial stability. Once you find out the risk apetite, it is much easier for you to invest.