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Investment4Dummies.com - Invest Wisely
Investments are the single greatest way to make your money work for you. Choosing the right investment for your unique financial situation can be a daunting task but ultimatley the most inportant dicision in securing your financial future success. There are, of course, many different ways you can invest your hard earned money, but there are a few more popular methods that you should be comfortable with before you delve too deeply into unfimiliar teritory. There more common investments include stocks, bonds, real estate and retirement funds.
The first item we'll start with is the stock market. Stock is the capital raised by a corporation through the issuance and distribution of shares. Stocks are traded in three main ways; short term, long term, and selling short. Short term trading is commonly refered to as day trading and works by buying and selling stocks throughout the day trying to make money off the minute to minute fluctuations in the stock price. This type of trading can be very time consuming and stressful, and it requires an intimate knowledge of market psychology and the stocks you are trading to be successful. In contrast, long term stock investments are an investment in a specific companys future groth and profitability, because over time, when the company grows your shares will become more desiriable and thus more valuble. The third way of stock trading, selling short, should wait untill you have a better understanding of the stock market in general.
Bonds
Investment and retirement funds
Real estate investment, like the stock market can produce large amounts of income, but can also have the potential for catistrophic loss. Long term real estate investment should be thought about in terms of human population. The population is almost 6.6 Billion according to the US census bureau and is projected to grow to 9 billion by 2042. That means in the next 35 years almost 50% more people than are alive today will meed a place to live, eat, work, shop, and play making your property or properties a prime long term investment. In the mean time learning to manage thoes properties is key, but if your not inclined to plan that far ahead short term property investments can produce money quickly but are far more risky than long term investments. A short term real estate investment, or flip as some people call it, is done by buying and undervalued, outdated, delapidated, or otherwise undesirable property for a bargain. Then invest some money into making the property desirable, and sell the property again in as little time as possible, taking the difference in sale prices as your profit.
If you havent already check out the terms page for more thorough information on the tecnical terms mentioned above to really learn what you are getting yourself into. Then you'll be ready to go over the stratagies page and practice your trading on a virtual stock exchange. Remember, what you do with your money is your responsibility, invest wisley, and good luck!
Learn The Basics of investments and how they can make your money or other peoples money work for you.
Search through various investment Strategies that will change the way you look at investing in anything from the stock market to real estate to artwork.
Don't know what something means? The Terms list should help. Compiled from various credible sources during my own
search for better information about various investment opportunities.
It is a HUGE list, encompassing stocks, bonds, real estate, retirement
investments like Ira's and 401(k)s, and so much more. So it may take
some time to go through the whole list, but you will have learned so
much that it is worth the time investment. |
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Investment information:
• Stock market investment
• Penny Stocks
• Mutual Funds
• Spider Stocks
• Real estate investment
• Foreign Exchange investment
• Currency investments
• Forex
• NYSE/NASDAQ
• HangSeng/Euro-Next
• Retirement Investments
• Wealth Management
• Mutual Fund management
• Top 10 Stocks for 2008
• Top 10 Speculation Stocks 2008
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Questions you should ask yourself before you commit to any investment:
- How liquid is this investment? How easy would it be to sell if I needed my money right away?
- Does this investment match my investment goals?
- Is this investment suitable for me?
- How will this investment make money? (Dividends? Interest?)
- What must happen for this investment to increase in value?
- What are the total fees to purchase, maintain and sell this investment?
- After all the fees are paid, how much does this investment have to increase in value before I break even?
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Practice on a Virtual Stock Exchange is a great way to gain experience before you invest your real hard earned money.
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