How to invest to always come out on top

At first, it might seem that investments are only available to bankers, economists, and professional investors. Anyone who wants to increase their income can do this. Read on this page how you can start investing, even if you are a beginner.

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A lot of people dream about getting rich fast. There is no magic pill for poverty, but there is competent financial management, which is paying off. Improving financial condition depends on increasing income, and not at all on savings. Anyone who wants to increase their income needs to pay attention to investing. To invest, it is not necessary to be a millionaire or a specialist in the economy. The investment principle is simple: you invest any amount, even the smallest one, in a project that, with development over time, brings you higher returns than what you invested.

Risks while investing

Fear of losing money when investing stops many. Indeed, there are always risks. Nevertheless, there are more and less secure ways to invest money. The wisest advice to beginners: do not invest all the money at once and do not use the same way of investing. Simply put: don’t put all your eggs in one basket. Investing all at once is the biggest mistake you can make.

  • Legal and political risks: these are risks associated with the situation in the country and investments in unstable regions, as well as changes in the legal framework of the state. Therefore, the return on investment policy may change.
  • Issuer risk: these are the risks associated with the company in which you invest. For example, litigation, license, change of leadership, bankruptcy, the decline in demand for the company’s products.
  • Market risk: return on investment will decrease due to the cheapening of underlying assets.
  • Interest rate risk: this is the risk associated with adverse changes in the interest rate.
  • Currency risk: this is a risk depending on currency fluctuations in the market. Even a slight swing can bring good dividends or vice versa.
  • Liquidity risk: this risk is related to the value of company securities. At the same time, the purchase of shares of large, stable companies is more reliable than the trading of shares of small companies. The faster you can sell a company’s shares on the market, the more liquid they are.

Competent financial investments bring tangible benefits to the investor. But such an outcome is possible only if everything is done in the right way.

As usual, there are such types of investments:

  • Direct investments. They imply one major monetary contribution to a specific project (deposit, real estate, business).
  • Portfolio investment. Investments are made immediately in several areas, which allows you to create a portfolio (a selection of potentially profitable projects according to the investor).
  • Intellectual (venture) investments. Funds that are invested in the development and popularization of new technologies (for example, startups), the development of Internet resources, applications, and programs.
  • Non-financial investments. This is attending courses and seminars, advanced training, training in new types of demanded specialties, that is, a contribution to their education.

It’s possible to earn a lot of money on investments, especially if you love modern technology. In this case, it’s wise to invest in:

  • Drones
  • Artificial intelligence
  • Blockchain
  • Biotechnologies
  • Cybersport
  • VR/AR
  • Cybersecurity

Today it is safer to contact not with specific companies, but with ETFs funds that invest immediately in the industry or some set of companies. The best option is to open an account with Interactive Brokers and choosing funds for investments.

Set realistic goals while investing – remember that it takes a long time! Investing can bring you enrichment, but only in the long run. Be suspicious of promises of getting a huge amount of money quickly.

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