How does Confidence affect Knowledge and Experience?

In a small number of instances, where Knowledge and Experience (K&E) would otherwise be High, it is reduced by low Confidence.

There are no overriding questions in the Confidence assessment. Each response feeds into an investor’s Confidence score. The overall K&E assessment separately measures four things: the investor’s education/profession, history of investing, Investment Sense, and Confidence.

The tool first checks the investor’s education/profession and investment history.

Only if both are Low does the investor get a Low rating; if they are Low on one and Medium on another, they are Medium overall; otherwise they are High.

If Investment Sense is low, the K&E rating is reduced by 1 notch.

Finally, if Confidence is Low, and only where K&E is High, K&E is reduced to Medium.