High, Medium Or Low Risk Investing Is Your Choice
One of the main types of investment is stock exchange trading
. We would like to outline the other main ways before we go on.
It sounds easy when we say that there are only three methods but it gets more complicated as each of those ways can be split into several sub areas. This means that prior to getting started in the frightening world of stock trading, there is a lot that you need to find out about.
Otherwise, and without investing in some
stock trading courses, it is very easy to lose money quickly which I guess, is not what you want.
The three types of investment are cash, bonds and stock.
There are also three kinds of investor profile. You can be a conservative investor, a moderate investor or an aggressive investor, it is your choice.
Whether you want to be a high risk trader or low risk trader is your next decision although it is fair to say that there is some overlapping in the different areas.
A conservative investor would be most likely to do low risk investments such as deposits of cash.
US Treasury Bills, mutual funds, money market accounts and bank savings accounts would be their main underlying investments. You are unlikely to lose money with these, except against the effects of inflation, but they tend to grow slowly over a long period of time.
At the other end of the scale, the high risk, aggressive traders will have most of their money invested in the stock market. They might however also dabble in risky real estate ventures where they buy up a few old derelict properties and spend a lot of money to refurbish them in the hope of selling them for a large profit.
In the middle the moderate investors will probably have a bit in cash and other similar low risk investments.
They may dabble a bit on the less risky shares in the stock market. They might also get a good return by purchasing some property that they know they can get a good return from by means of guaranteed rental income.
So before you start getting your feet wet you have to sit down and give some serious thought to how risky a person you are, and whether you could cope if you saw the value of your underlying investment tumbling. Most people would not like to be in that position even though the value would probably go back up again.
If you feel that you can manage that, then stock market trading is definitely for you.
High, Medium Or Low Risk Investing Is Your Choice
By: Trevor Barrett
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