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Investing
Explained in 5 Minutes |
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by Grant
Bynum� 1� 2� 3�
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Are
you hearing all those stories from the stock market
about 100% annual returns?� Are you ready to start
getting in on that?� Before
you do, make sure that you understand some common-sense
basics about investing.� Let us give you a few
simple steps to get started� with investing.
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| Pay
attention if: |
You
are a beginning investor. |
| The
Plain� Summary
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Build
an investment foundation with many types of investments
that have varying levels of risk. |
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FIRST
Minute:� Figure Out Your Goal & Risk Sounds
pretty simple, doesn't it?��But many novice
investors don't do it.� Here's what we mean -
anyone can say that they want to "retire
early",� "fund their children's
education", etc.�But, you must assign a
timeline to your goal...because it will determine a lot
of other things about your investment
decisions.�� |
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You
must realize that higher investment equals higher risk.�
It's would be great if each
of us could make 50% on our money each year, especially
in the stock market.� But, let's get real.�
The higher % of return that you are trying to make, the
more risk is going to be associated with that
return.� Translate "risk" to be:�
the risk of making less than a certain %, making no
money at all, or even losing some or all of your
money.�
So, this is not to say that you can't
make a 50% annual return on your money...but it means
that this investment will be much
"riskier"...meaning that the chances of you
not making 50%, making nothing, or even losing all of
your money...is much greater.� So, remember,
the higher the risk, the higher your chances of losing
money as well...don't be fooled.
| SECOND
Minute: Understand the "Investment Ladder"!
You
use ladders for getting higher...to scale
heights.� With each ladder step that you
take, you get higher, but it's more dangerous
("riskier").� Well, think of
investing in the same way... So, let's proceed! |
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Understand
the Investment Ladder��� |
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