Let’s be honest here. Investing is one of the best things that one can do with their money. Why? Because they are leveraging their own money to make more money. Instead of trading their time and energy for money, they are trading their money. Agora Financial can help out with this. They help individuals invest who can’t actively invest on their own. However, there are some basics to investing that everyone getting into the markets must know about. We are going to be going over these in today’s article.
- Know your investment
If you are investing your hard earned money, why would you want to invest it in something you don’t know and understand fully? This is why it is a must to get educated in the market that you are going to be investing in. If you can’t learn, the people at Agora Financial can help you. Also, when it comes to investing, you must set both long-term and short-term goals. You must find out how much you are going to invest every month, what you are going to invest in, and how you are going to invest that money.
- Short-term investments
By short-term investments, I do not mean “get rich quick” investments. However, I do mean an investment that is going to provide you greater returns on average than your long-term strategy. For this, I’d recommend learning how to swing trade stocks. This is a great way for beginners to grow their money in the short term. A good goal to shoot for would be 5% a week. In the end, have an understanding of the investment, know the risk/reward ratio, and know that stock’s pattern and previous history. This way, you’ll be better informed.
- Long-term options
These options are best for the passive investor. Two main investment vehicles that I’d personally recommend are a Roth IRA and a 401k if your company has one. With an IRA, you’ll be able to grow your money tax-free and have it compound over time. With a 401k, your company will match the amount you put in. All in all, these are great options for stable investments and guaranteed retirement.