MONEY MARKET: INVESTING ADVICE
Is your life boring? Too predictable?
If you have cash to spare, a windfall, an unexpected legacy, consider investing in the money market. You are guaranteed some excitement!
The aim in investing money is simply to make more money. You invest capital and you receive a return on your investment. If you invest in shares, say, there are two kinds of return:
– Capital gain
– Dividend income
2 FINANCIAL SOFTWARE
A great deal of software is available to assist you in making decisions about buying and selling on the stock market. Such decisions should be based on a systematic evaluation of performance and profitability of companies. This research can be efficiently assisted by powerful software tools. With so many available financial software packages, choose carefully the one that suits YOUR specific needs.
3 INVESTMENT ADVICE
A professional adviser can help you by evaluating your requirements and by suggesting appropriate investment possibilities. The adviser will work with you to develop your investment portfolio, but remember that you are ultimately in control.
4 INVESTING STRATEGY
It is advisable that you invest for optimum return, but that you never invest beyond your risk tolerance. To ensure this you must design a strategy appropriate to your personal situation. Your plan will depend on how much you invest, where and for how long. Identify goals and create a clear strategy.
5 ALTERNATIVE INVESTING
Stocks, bonds and real estate are obvious investments. However, keep an open mind. Anything, other than the above, can be investment material if you are smart enough to see the potential. It could be Art, or your collection of old coffee machines. The aim, as in all investment, is to create a satisfactory return.
6 INVESTING TIPS
Never allow excitement or emotion to rule your actions. Be aware of clever fraudsters, especially on the Internet. Always research an investment opportunity that you find appealing and remember the adage: “If it seems too good to be true, it usually is!”
7 INVESTING ADVICE
Learn to analyze the financial standing of companies offering stock. Learn what questions to ask about such companies and ask them. Never feel intimidated about seeking information before you commit your money.
8 INVESTMENT ADVISERS
In choosing an adviser, consider these criteria:
– What services are offered?
– Do these services meet my needs?
– What experience and success can the adviser show?
– What is the cost to me?
9 INVESTMENT NEWSLETTERS
These appear regularly on the Internet, offering free information about companies and recommending stock. Such information is frequently not as unbiased as it claims to be. The would-be investor should always delve deeply into the so-called independent reports and ascertain their provenance and reliability.
10 INVESTMENT MANAGEMENT
Good management of your investment means that your portfolio is carefully constructed as appropriate to your requirements. The prudent management of your investment, whether short or long term, will maximize the performance of your investments so that your returns are satisfactory.
Just remember, never invest more than you can afford to lose, don’t sell the house to raise capital and be wary of tempting opportunities that offer improbable returns.
The money market can certainly be an exciting option for financial growth and increasing your income potential, especially if you can keep a cool head.
Get a kick out of joining this new world!