Investing for Beginners
Do You Really Know What Investing Means?
There are many investing for beginners articles written on the internet. They usually contain almost the same introductory information.There are some differences of course. Some are really short, while some are really long. Here I have only put in the information that you need at this moment.
Remember we are still at the foundation stage. This is just an investing for beginners introduction article. So I do not want to confuse you with too much information now.We will go in depth later.
Focus on what you need to know now.
Investing means putting your money to work for you
That in a nutshell describes what investing is all about. If you look at the lives of some of the most successful investors in the world like Warren Buffet, Peter Lynch and John Templeton, you will realize something. Yes, they all have learned how to put their money to work for them.
You see, while it's good to be able to earn money form our jobs or business, we need to diversify. What happens when you are no longer able to work or your business suffers? If you start investing now, there will come a day when no matter what happen, your investments will be able to support you and your family.
Investing means putting your money into something for a period of time to achieve a return.
While this site is more on stock investing, there is actually many types of investments. If you put your money into something for a period of time to earn you more money, you are actually investing.
If you put your money into something for only 1 or 2 months, we call that trading. Investing usually involves a longer period of time.
As mentioned, there are many types of investment you can go into. Since this is just an investing for beginners article, I won't go in depth on those now. I'll just briefly mention it.
Besides stocks, you can invest in real estate(properties), commodities like oil and gold, mutual funds, bonds and even advanced investment vehicles like forex and options. So as an investor you have many choices. What if you are interested in real estate(maybe not now)or commodities.
Well here's a little secret...
You can actually invest in those through your stock market account. I guess you might be wondering how on earth you can invest in real estate through your stock broker. Yes you can, through a special product called ETF's.
I will teach you later how to invest in gold, oil, real estate and other vehicles without needing to buy it physically.That's a subject for the more advanced topics. Patience...
Investing or Trading?
You have heard stories about the great wealth that people like Warren Buffet have made through investing. At the sametime, you have also heard stories of how your relative or neighbour made a killing in the markets by trading.
Yes trading can be very lucrative and you can make fast money while investing seems so slow.So you would be thinking,should I be investing or trading? Investing seems safer and less time consuming but hey, maybe I can also try the fast paced world of trading. Which one should I do?
Well, I will help you with that. But first let me introduce you to trading in the next article in the Foundation series titled Trading introduction. There, I will also help you decide whether you should be investing or trading.
I will also show you a great alternative. That's all for now on investing for beginners introduction. Click hereto read the next article in the Foundation series, Trading introduction.
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