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The Publisher has strived to be as accurate and complete as possible in the creation of this report, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet.
While all attempts have been made to verify information provided in this publication, the Publisher assumes no responsibility for errors, omissions, or contrary interpretation of the subject Matter herein. Any perceived slights of specific persons, peoples, or organizations are unintentional.
In practical advice books, like anything else in life, there are no guarantees of income made. Readers are cautioned to reply on their own judgment about their individual circumstances to act accordingly.
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Foreword Before investing please understand, the stock market will not magically make you or lose you money. You should also understand that every investment comes with a certain level of risk, and the ideology “more risk, more return” comes into play with every single investment on earth. Finally, you should not invest without having an emergency fund of at least 6 months of expenses in a savings account.
Learn to invest
“Just because you buy a stock and it goes up does not mean you are right.
Just because you buy a stock and it goes down does not mean you are wrong.” So you want to learn how to invest properly, but don’t know where to start. Well luckily you’ve came to the right place!
The Internet can be an amazing place when it comes to learning about investments but it can also be a plethora of bad information or just way to complicated for some who is new to the whole investing world. So below I’ve outlined some basic information that will hopefully get you on the right track to successfully growing your portfolio.
At the very basis of modern investing is an online brokerage account, these accounts provide very similar services but vary when it comes to the fees and commission structure of their services. I personally use Scottrade, its 7 dollars for all regular trades unlike fidelity, which is 9.99, and they have an amazing research and learning center built into the interface. The other popular ones are etrade and tdameritrade, all which are also perfectly acceptable.
After you’ve found a broker you like you simply connect your bank account and wire funds to your online account, the whole process takes about a day or two and is relatively painless.
OK now you’ve got money in your account now what… Well this depends on your risk level and your goals for your future. There are bonds, stocks, mutual funds, options, commodities etc. all in which provide a valuable investment for the right person.
For the newbie we should stick to only 4 types of investments mutual funds, bonds, etfs, and stocks.
A bond is a debt based security like a loan that corporations and the federal, state, and municipal governments issue out. An easy way to understand bonds is that you are the bank and the issuing body is taking a loan from you. The issuing body will pay you a given interest rate for the amount just like a loan and when the maturity period is up you will get your initial investment back as well. For example company xyz issues a 10 year 9% interest rate or “coupon” bond with semi annual payments with a par value of 1000 dollars. This means you will receive 45$ twice a year for ten years from xyz and when the 10 years is up you will receive your 1000, leaving with you 1900 total or a 900 gain. There are many types of bonds that are rated by the credit of the company or how risky the bond is. The basic principle of investing comes into play here…