Spontaneous investors tend to have which of the following traits?

Spontaneous investors are characterized by their high portfolio turnover. This trait stems from their impulsive decision-making processes which often lead them to buy and sell securities frequently, responding quickly to market movements, news, or trends without thorough analysis or long-term planning.

This high turnover can be indicative of a lack of patient, long-term strategies, as spontaneous investors often prioritize immediate or short-term gains over the benefits associated with holding investments for extended periods. As such, their investment style can lead to frequent reallocation of assets, which may increase costs related to transactions and taxes.

In contrast, a focus on long-term investment strategies involves a more measured approach, which is less aligned with the spontaneous temperament. Additionally, spontaneous investors typically display higher emotional engagement, often swayed by market sentiment or recent performance rather than consistent risk evaluation, which is a hallmark of more disciplined investors who carefully assess their risk tolerance and portfolio composition before making changes.