With investment options both online and offline booming like never before, there has never been a more interesting time to look into investing. Hundreds of tools and guides are available on all aspects of trading, but if you are new to the field it can seem overwhelming. Today we’re going over some of the basics to catch you up to speed on the fast moving markets. As well as cover some of the best options to invest in.
Before going into building your investment portfolio, covering why not to put all eggs in one basket and other such advice, it is important to understand on a fundamental level the different types of possibilities there are for investors.
Investing in stocks
Stocks are still one of the most popular and historically solid ways of investing, but in February and March of 2020 there has been some significant risks involved. That’s why its more important now than ever to spread the risk over several smaller investments in different fields and business models, so that when one market is performing opposite of how you traded, it will not affect your entire portfolio. It is not just enough to buy Microsoft, Google and Apple stock, since they are all related to technology and depending on many of the same market signals.
Despite the upset so far of the year, stocks are still expected to be the major driving force for years to come. There are many advantages to such a popular trading method, availability, small fees, many brokers and tons of publicly traded businesses make it popular, regardless or even because of the risk. Another thing to keep in mind is that the stock market since its inception has only risen in value on a whole. Therefore one of the key things to do is avoiding loss, even more important than gaining.
Investing in real estate
Another very popular but slightly more costly affair is real estate. Speculating in brick and mortar is probably as old as currency itself. Prime locations, up and coming areas, as well as a general increase in the GDP and wages make real estate a potentially solid pick. And while the initial entry fee can be quite steep, there are newer communal options available where you as an individual investor don’t have to fork out all the money needed for a house or apartment complex, and instead share in the risk and rewards with other shareholders as co-owners of the property.
Investing in raw materials and commodities
Another ancient form of trade has to do with what the earth provides, from oil and natural gasses to gold and iron, mankind has always harvested earths bounties and then sold them for a profit. Generally speaking these types of investments are susceptible to quick changes, and often you will need a lot of capital to earn a decent return on your investment. There’s a few different types of methods depending on your capital. You can buy whatever silver or oil you want and store it physically, or you can trade on platforms that allow future contracts, which are bound by time.