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Investing 101
This article is actually about a subject that I felt I needed to research for my own good. Now that Im making money online in marketing I thought that it would be a good idea to learn some investment strategies. At the very least, find out what types of investments there are, so this articles is kind of a beginners tutorial on investments. Ill go into more detail of each type in later articles. The one thing I did know about investments even before doing this research is that investments can be relatively safe, very risky or somewhere in between. And as with anything in life the bigger the risk the bigger the reward. Lets face it, youre not going to get a 50% ROI by putting money into a savings account. Right now mine is earning about 1.5% interest. Pretty pitiful if you ask me. Thats not investing. Thats just letting your money rot away in a vault.
So lets see what basic types of investments we have.
For starters you have bonds. These are also called fixed income securities. The reason that they are called this is because the income you get from bonds is fixed. You invest a certain amount in the bonds you purchase and after a certain amount of time, when the bonds mature, you get a certain return. Youre basically lending out your money to the government and they are paying you back with interest at a later date. Bond investment is relatively risk free. Therefore the return you get is pretty low.
Then there are stocks. And let me tell you, there are more stocks out there to invest in than Carter has liver pills. Just check with the NYSE to see how many stocks are actively being traded. Stocks are much riskier than bonds. A stock can sell for $5 a share one day and drop down to $1 a share the next day. Imagine investing in 1000 shares. You would have lost $4,000 in just one day. Conversely stocks can give you a big windfall literally overnight. The key to stock investing is to get a good broker who knows the market. And dont worry, he WILL have your best interests in mind because he wants to make money too, as he gets a percentage of any gain you make on the stocks you invest in.
Then you have your mutual funds. Mutual funds are a collection of stocks and bonds put together in one portfolio. When you buy into a mutual fund you are actually throwing in your lot with a bunch of other investors. The theory behind mutual funds is that the diversification of investments will help prevent against any great loss on the investment as a whole. My wifes IRA is actually part of a mutual fund that so far is doing very nicely. So these are relatively safe, though a little riskier than bonds alone.
And then finally you have what they call alternative options which include options, futures, FOREX, gold, real estate, etc. Ill go into these in detail in future articles.
Investing is no longer a luxury, its a necessity. With the value of the dollar constantly going down the only way to provide for your future and your retirement IS to invest. If you think Im kidding, in 1965 a gallon of gas was 32 cents. Its now up to over $3 where I live. No, a dollar isnt worth what is used to be worth.
Whats the answer
Invest.
Just dont lose your shirt in the process.
Michael Russell
Your Independent guide to
Is This the Kind of Money You Want?
Just the other day one of my friends, Linwood, asked me, David, how are you doing in commodities I replied, Why as a matter of fact, Im checking on some profits right now. Linwood went on to say that his cousin is a commodities broker. I replied, And you have not invested in commodities yet What are you waiting for
My friend went on to say that he wanted to learn more about commodities before he invested in them. He is very smart in wanting to learn before he jumps into something he does not fully understand.
Being a success coach in teaching people how to invest in commodities, I seized the opportunity to help him get acquainted with commodity investing. I pulled up a website that showed the prices of what commodities were trading at. I went over some basics like how to read and interpret the charts.
He then asked me where I thought he could invest $500. I proceeded to tell him that I thought Gold offered a good opportunity. I cautioned him that Gold was currently in an uptrend but that it would eventually pull back.
I then asked him what was the minimum amount of money he would be satisfied in making The reason I asked this question is because I wanted to make sure his expectations were realistic. I asked him other questions too like what was his timeframe for an expected payoff He answered these questions. Based on his answers to the questions we devised a plan of action.
I advised him to take a look at investing in a Gold call option. At the time the option was priced at $490. I advised him that the commission and fees would add to this price a little. I said lets watch the price for a week or two to see if he would have made money in the trade.
This strategy is referred to as paper trading or as I like to call it play before you pay.It is a great way to learn how to invest and use different strategies before you risk your money.
The following day we watched the call option go up in price to $700. This represented a $210 profit in one day. Another way of looking at this is he could have made a 43% profit in one day. The next day when we looked at Gold, it was worth $800. So in two days he could have made a profit of $310 minus commission and fees. This amount represents a 63% profit in a couple of days.
Keep in mind this is money he did not have to do physical work for. It is what I call sit down money. On the otherhand, stand there money is when you have to work for someone else and stand there and accept however they treat you.
Decide today that you want as much sit down money as you can make. For more information visit and order Wealthy Investing Secrets today.
Much More Success,
David D. Wells - Master of Turning a Small Stash into a Huge Pile of Cash
Copyright David D. Wells. This Article and all contents are proprietary products. All rights reserved. You are welcome to forward the entire Newsletter to anyone interested as long as it is not edited in anyway and includes the Resource Box.
Often referred to as The Money Motivator, David D. Wells is passionate about helping people Crack the Wealth Code to become Money Magnets. Let him teach you the techniques used to help Hillary Clinton turn $1,000 into $100,000 in the course of a year.
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