If you want to increase your wealth and financial worth, you will want to invest your money. In the beginning of your journey you would have many questions, such as how to start investing, and what's the best strategy to choose. Read my ultimate guide and you will find all answer to those questions and even more!
And remember if you invest wisely applying all strategies, the potential to gain money is higher than you never try.
1.Know your investment options
Before start investing it is very important to know all options where you can put your money in the beginning and chose a right proportion between them. The most popular investments may include:
A stock is a share of ownership in any company. They are also known as equities. They are purchased for a share price, which can range, depending on the company.
My advice is not to put more than 10% of your portfolio in stocks until you get comfortable with it.
A bond is a loan to a company or government entity, which agrees to pay you back in a certain number of years. While, you will get interest.
Usually bonds are less risky than stocks because you know exactly when you’ll be paid back and how much you’ll earn.
My advice is to create only a small part of your portfolio with bonds as they earn lower long-term returns.
The foreign exchange market (Forex, FX, or currency market) is a global decentralized market that started its forming in 1970 for currency trading. You can buy, sell or exchange currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world. Though the price determination process is very complex as the rates are influenced by multiple reasons and factors.
A mutual fund is a mix of investments packaged together. Mutual funds allow to skip the work of picking individual stocks and bonds, and instead purchase a diverse collection in one transaction. The inherent diversification of mutual funds makes them generally less risky than individual stocks.
Like a mutual fund, an ETF holds many individual investments packaged together. The difference is that ETFs trade throughout the day like a stock and are purchased for a share price.
What is good about EFT is that its share price is lower than the minimum investment requirement of a mutual fund.
It’s best to start out investing in mutual funds or exchange-trade funds rather than individual stocks and bonds until you become more familiar with all these options. They’re not only safer investments (because they’re diversified), but it’s often far less expensive to invest this way. You’ll either pay just one trading commission or nothing at all.
There are thousands of distinct cryptocurrencies, while bitcoin and ethereum are the most recognizable. Prices are very volatile, and the risks are distinct from investing in conventional assets.
These are investments such as gold or silver. These physical commodities often serve as a safeguard against hard economic times and provide competitive returns. Gold has maintained its value throughout the ages that’s why it should be in portfolio of an investor.
2.Robo-advisors. Important to know
Robo-advisors make investing as simple and accessible as possible. You don’t need any prior investing experience, as robo-advisors take all of the guesswork out of investing.
They are financial advisors that use algorithms to give you the very best advice about financial investments.
Robo-advisors are more affordable, and they have lower investment minimums than standard financial advisors.
3.Diversify and Reduce Risks
To reduce all risks it is highly important to diversify your assets. It is better to invest in one or two companies (at the most) to begin with. Experienced investments usually distribute their investments into different classes of assets. It is better to start with simple investments such us mutual funds or ETF's exchange-traded funds are a good first step, before moving on to individual stocks, real estate, and other alternative investments. If you have your question, please write it below, I would be glad to answer it or to introduce your project to my team at Astorts Group to be evaluated. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.