Everyone has a different understanding of what risk means to them. For investors, this typically means the volatility of your investments and potential of loss.

For some, highly volatile cryptocurrencies form a core part of their portfolio; for others, the sheer thought of investing is a risk in itself. But risk is almost always unavoidable; with all investing, returns are never guaranteed and always carry a degree of risk regardless of what you’re invested in.

Next, how long you plan to stay invested for can impact the strategies available to you. Factors such as the need for liquidity and the ability to wait out market cycles can impact how you invest.

Plus, more time can also allow for consistent investing that can work in your favour, through strategies such as dollar-cost-averaging, which we will cover later. One aspect that is rarely talked about, is the psychological impact which time can have on an investor’s behaviour - such as its influence on panic selling, or jumping on the hottest new investment trend too soon.

After all, Warren Buffett famously said "time in the market beats timing the market.".

Your financial goals play are the cornerstone in defining your investment strategy. When identifying your goals, consider what they are and whether your time horizon and appetite for risk are realistic in helping you to achieve them.

Or, instead, start by assessing your risk and time horizon and how they in turn will shape your goals. Defining goals will be different for everyone, and will help you craft an investment strategy which is appropriate for you.