When you’re new to investing, it’s only natural that you’re going to be a bit intimidated. Up until now, you may have played it relatively safe with your money and savings. Maybe you like to see your money and keep it in cash, or you like to have your money in instant access savings so you can get to it? Either way, you probably also know that you’re not going to be getting the best return for your money, particularly when you compare those methods to investing. So it’s often exciting to be able to consider making an investment that will give you a great return. From traditional financial investing in stock and bonds, to things like property, cars, or art, you do have the potential to make some great money when you invest. But before you do, here’s how you need to approach it.
1. The Type Of Investment
Before you get ahead of yourself, you’re going to want to work out what kind of investment you want to make. For this, you can research online to see what kind of options you have, or you can choose to work with a specialist broker that can advise you. In short, you’ll want to know whether you prefer to invest your money in stocks and bonds, or whether you want to go with something different and specialist, such as commodities.
2. The Amount You Invest
The next step is working out how much you want to invest. While this decision is up to you, the type of investment that you choose may also have a say in the amount you will need to invest – especially when it comes to minimum amounts that may be accepted, or that would even get you that investment in the first place. Again, your research in step one should help you to come up with a figure that you’re comfortable with.
3. Any Tactics You Want To Use
From here, you may also want to think about your investing tactics. If you are investing in the stock market, then this is going to be particularly important. Deciding on your approaches, such as bear put spread and other tactics, will often determine how the investment goes. Whether you play to play it safe or be aggressive, having a plan of action can help you here.
4. The Term You Want To Invest For
Another key point to decide on before you invest, is the term. Some investments may come with a minimum term, meaning that you may not make any money until the market changes. So you’ll want to be comfortable with the term that you’re tying your money up for.
5. The Risk
If you’re a little weary of making your first investment, measuring risk is going to be a good thing for you. Working out the risk, and getting to know exactly what you’re facing will not only give you peace of mind, but it will help you to decide whether or not you want to make the investment in the first place.