Basics of investing
Fundamentals of investment
Investing your money is the most reliable way to create wealth over time. If you are new to the investment world, we are here to help you get started. To help get your money working for you.
Before you put your hard-earned money into an investment, there are some issues you need to clarify.
You need to assess how much time you want and can spend on it. If you have some time and want to spend your time, you can sit and trade yourself in the form of active investment. If you want to trade on a daily basis, but can’t spend the enitre day researching and analyzing. We can help you with that, all you have to do it select a memberhsip and download our app.
Alternatively, you can put your money in some long-term papers, or have a company manage your funds for you.
But if you sit with it yourself, it will take longer. However the return that you can expect is related to the time you spend on analyzing and researching before investing.
As a general rule, you should not go out and invest funds that you will need in the near future. It must be an available amount so that, in the case that unexpected events happen, you do not have to sell shares, housing or anything else that you have invested in.
It is also important that you consider how much you can afford to lose. Or ask yourself, how much can you leave for several years?
– in case it all crashes and you have to wait 5 years?
There is a risk associated with all investment. There is no guaranteed return, no matter how experienced you get.
But there is multiple options, based on your risk.
1. You can buy relatively secure bonds or real estate and earn around 3% in annualized returns.
2. You can invest in stocks where the risk is greater, but the return is the same – at least on the long run. On average, the stock market has increased by 10% per year.
The risk is often connected to your age and amount, if you are young and trading for small amounts, you will tend to trade high risk stocks. On the contrary, if you are a little older and invest a lot of money, your risk will often be lower. You tend to spread your investments more, on many different products, strategies, sectors and countries.
Purpose of your investment
It is always a good idea to give your investment a purpose. Is it savings for retirement? Or is it to make the money you need for a vacation next summer? Your time horizon has a lot to say, and when you decide, you can quickly find out which strategy is the best for you.
But diversifying is always a good idea, both between different time periods, countries and sectors.