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A Beginners Guide to Investment

Short term trading can help you make money quickly. Traders buy and sell goods, currency and shares quickly. Traders who work at a professional level often use brokers who trade on their behalf for a fee. If this is something that interests you, then you should look at this list of CFD brokers.

If you have more time on your hands, rather than trading, look at how you could invest your money for the long term for a more significant financial reward. We have listed the two main investment techniques below, so have a read through and see if any of these ideas could inspire you to start up your first investment portfolio.

Investing in Shares

Public Limited Companies sell small portions of their company to the public in order to raise capital. If the company does well, the owners of these shares get money back in the form of dividends. Depending on how well these companies are doing, the value of the shares goes up and down.

The most famous form of investment is investing in stocks and shares. You have probably heard of the Stock Exchange. There are Stock Exchanges all over the place, from London to New York. The Stock Exchange is a physical market place where shares in companies are bought and sold. Investing in shares can be a very risky business, especially if you invest a lot of money. You could lose it all or you could multiply it many times.

If you are going invest in shares, make sure you get professional advice from an expert. It is all about predicting the future, so it is important to know your stuff.

Investing in Property (rental and price)

There are three ways to invest in property. Property is a very popular form of investment as it rarely loses value and it is a physical object that you can very easily keep track of. One way to invest is to buy a property in need of development, in an area with plenty of potential. As a result of renovating the property, you would then be able to sell it on for far more than you bought it for. Secondly, if you predict that the housing market is about to boom, you could purchase a house then simply wait for its value to rise before selling it on.

Lastly, you could buy to let. By renting out a property to tenants, you are receiving a monthly income to cover any expenses. All the while the property is gaining market value ready for when you would like to sell it again. Just be careful to keep an eye on the housing market before buying or selling, as you don’t want to fall victim to a dip in the market which could lead you to lose money.

Whether you’re trading or investing in property and shares, make sure you get some expert advice as it can be a complex, risky business. It is better to ask for help, as this way you know that you won’t make any mistakes and that your business is safe. Bringing in an expert can help you out a lot, so it is worth doing this.