Bailard, Biehl And Kaiser Five-Way Model

AAA

DEFINITION of 'Bailard, Biehl And Kaiser Five-Way Model'

A model of five investor categories developed by fund managers Tom Bailard, Larry Biehl and Ron Kaiser. The Bailard, Biehl and Kaiser (BB&K) Five-Way Model defines investor personalities based on their confidence level and preferred method of action. The five categories thus defined are - Individualists, Adventurers, Celebrities, Guardians and Straight Arrows.

INVESTOPEDIA EXPLAINS 'Bailard, Biehl And Kaiser Five-Way Model'

The BB&K classification system enables investment advisors to target the right kind of clients for their particular business specialty and provide a higher level of service. For example, an advisor who specializes in aggressive option strategies would be better off targeting his or her marketing efforts to celebrities rather than guardians.

RELATED TERMS
  1. Rational Behavior

    A decision-making process that is based on making choices that ...
  2. Herd Instinct

    A mentality characterized by a lack of individual decision-making ...
  3. Behavioral Finance

    A field of finance that proposes psychology-based theories to ...
  4. Market Psychology

    The overall sentiment or feeling that the market is experiencing ...
  5. Open Trade Equity (OTE)

    Open trade equity (OTE) is the equity in an open futures contract.
  6. Wingspread

    To maximize potential returns for certain levels of risk (while ...
Related Articles
  1. Active Trading Fundamentals

    4 Psychological Traps That Are Killing Your Portfolio

    Sometimes your largest financial hurdle is our head. Learn about the common mind-traps that trip up investors.
  2. Options & Futures

    Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
  3. Retirement

    This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  4. Active Trading Fundamentals

    An Introduction To Behavioral Finance

    Curious about how emotions and biases affect the market? Find some useful insight here.
  5. Active Trading Fundamentals

    The Flaws Of Using Mass Sentiment To Be Contrarian

    Like most allegedly sure-fire methods in the investment industry, this one has its flaws too.
  6. Options & Futures

    Market Problems? Blame Investors

    Investors are only human, and their irrational behavior can often move the market.
  7. Active Trading Fundamentals

    Leading Indicators Of Behavioral Finance

    Discover how put-call ratios and moving averages can be used to analyze investor behavior.
  8. Options & Futures

    Trading Volatility? Don’t Trade Stocks, Trade Options

    During times of volatility, traders can benefit greatly from trading options rather than stocks. We explain why.
  9. Options & Futures

    Top Brokers Offering Tools For Covered Calls

    Here are the brokers that offer the best tools for investors and traders to write covered calls and covered puts.
  10. Economics

    Effects of OIS Discounting for Derivative Traders

    The use of OIS discounting has important implications for derivative valuations and could positively or negatively impact a trader's profit or loss.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center