From Due.com:

To succeed in investing, it is crucial to understand the different levels of expertise and how to progress from one level to the next. Beginner investors often lack knowledge of the stock market and make decisions based on simple factors like brand recognition or social media trends. Intermediate investors may understand the importance of diversification, but struggle to build a balanced portfolio. Advanced investors have a diversified portfolio and understand the importance of managing risk, but may overlook tax considerations. Professional investors combine the qualities of all previous levels and are equipped to handle various economic conditions and grow their wealth in the long term. They must meet specific financial or professional criteria to become accredited professional investors according to the SEC. Professional investors have a comprehensive understanding of their portfolios, excellent diversification skills, strategic tax efficiency, and informed decision-making abilities. They prioritize long-term wealth growth and have a thorough understanding of tax intricacies to optimize their financial outcomes legally and ethically.



Read more: The Four Levels of Investor Expertise: Which are you?