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People’s are often wrong about their risk tolerance and investment goals
According to research by a San Francisco psychiatrist people’s ideas about how risk tolerant they are is often wrong.

For example a person may tell his financial adviser that he or she has a long term investment goal and is willing to accept downturns for the sake of higher gains. But when the stock market goes down the pain is too much to handle and the investments are sold at a loss.

Questionnaire to help people understand themselves better
For people to be able to
Marketpsych.com has developed some questionnaires to help people better understand themselves. The questionnaires require registration, but are free for now.

The questions will be about person’s earliest financial memories and family influences on money behavior, also about general life goals. You then get back a report on your emotional relationship with money (how you feel about scarcity and abundance, for example), your investing style and your asset-management habits.

Quote article: “Through September, more than 1,500 investors in 2005 had filed actions against their brokers claiming their money was placed into investments that were unsuitable to their risk profiles, according to the NASD, a securities industry self-regulatory group.”