There are two major variables in figuring out your investment style - your risk tolerance and the amount of time you can dedicate to investing.

• RISK

  First of all you need to consider how comfortable you will be seeing your investment decrease in the near term and you will have to wait to increase its returns. The important thing to remember about stocks is that you don't lose anything until you sell them. That's why, when you're investing in the stock market, you need to think long-term. Don't invest any money in stocks that you'll need in the short term.

• TIME

  Time is another important element of your investing profile. If you need the money next week or in a hundred years will dramatically affect your investment style. Although stocks have great long-term returns, the returns over periods of three years or less can be risky.