The Gentleman’s Guide To Investing (The 5 Things You Need To Know)
While it may have been gauche for gentlemen in the past to talk about where the income came from, the internet has got rid of all that. In fact, you will find a lot of advice and discussions online on how to improve your finances through investment. However, so much information can easily be overwhelming, especially to those that are new to the field. With this in mind, we have created a simple guide to the top four things you need to know before you investing any of your money. Just keep reading to find out what they are.
Crypto could be lucrative if you pick the right one
Unless you have been living under a rock for the last few years, you will have heard the term cryptocurrency in relation to investing. However, before you consider putting any of your hard earned cash into Cryptos like Tron and Bitcoin you need to know about the systems and what the potential for making money in this field is.
Let’s start by saying that unless you have megabucks you invest, you probably want to stay clear of buying Bitcoin on the open market. The reason for this is because it is so well-established that the price of Bitcoin has rocketed, making it impossible to get in when the buying price is low and then sell again when its high.
Although, don’t write off Bitcoin completely in terms of making some income, as you can still invest in the hardware that allows you to mine it yourself at home. Alternatively, you can invest in server farms in places like Iceland that do it on a mass scale.
Having said that, if you are looking to invest in crypto in the way, you would traditional forex stock, some of the less well-established coins like Litecoin and Zcash may be a better bet. This is because as they are yet to hit the market, and so you could make a killing while they are still in their infancy.
You can now go it alone
Another piece of valuable information that today’s modern gentleman needs to know about investing is that largely due to the internet, the system has changed. No longer do those wishing to invest have to go to a fund manager and ask them to handle their deals. Instead, they can have complete control and autonomy over every purchase and sale by using an online trading platform, or even a mobile app.
Use a mobile stock trading platform to make your own investment decisions.
This is quite revolutionary and is part of a movement that is making the financial market less elite and more open to every single person with an interest. Although, it is always worth bearing in mind that fund managers are incredibly motivated for the decisions to succeed, as they are paid on a percentage basis. They also have year’s worth of training, experience, and expertise of the stock market and know what to do when it moves from being in a bull position into a slump or crash. Something that less experienced individuals may have trouble managing on their own.
More and more online trading platform are now offering free trades. freetrade is the latest stock app to join the commission-free marketplace. Take a look at this freetrade review to see the benefits they offer and more importantly how to save money while investing so you can keep more of your money.
But there is always safety in numbers
There is another advantage of using a fund manager to look after your investments as well as having their experience to help you out in times of crisis, and it is strength in numbers.
In particular, those managers looking after mutual funds are a wise choice because they can pull a number of investors’ capital together and invest on a bigger scale. Such fund managers also have the opportunity of better diversifying their client’s investments. An action that can help offset the risk of investing as if one market fails you still have the others in play.
Something that suggests learning more about investing in mutual funds a worthwhile activity if you are considering your income options. After all, the investment market should never be entered into unless you have studied the possibilities and weighed up your options to see what will work for your personal situation the best.
Long-term investing or day trading?
It is also crucial to determine the type of investment strategy that you are going for before you start to make any actions. In particular, many people think they can make it big on the stock market over a very short space of time. While this isn’t unknown, it can be an incredibly risky procedure, meaning careful consideration is needed before embarking on such an action.
Such short term traders are often known as day or swing traders. Day traders buy assets with the aim of selling them on within the same day for a profit. However, it is worth noting that many countries laws prevent more than a certain number of day trades in a week. Something that can mean you assessments are frozen if you go over the required limit.
Alternatively, swing trader still works in the short-term, but they buy assets with a view to turning them around for a profit within several days. This negates the problem of being limited on day trades but still include the benefit of the possibilities for fast profits. Of course, as both positions are so risky the potential for loss as well as profit is high, and most short-term traders cannot make even a sustained living trading in this way, let alone hit the big time.
The other option for investing is taking a longer-term view. This is when you buy assets or shares that you hope will mature over years rather than days. This is a lower risk process, although still not risk-free, and most investors can expect to make around 9% back over a ten year plus period, as long as they are happy to keep their investments in until they are in profit rather than loss.
This 9% is, of course, a much better rate than most banks offer on savings, although you do need to start early and invest as much money as you can to make enough to fund early retirement. Something you can find out more about by in books like Millionaire Teacher by Andrew Hallam.