Investment FAQs

By on November 22, 2012

Investment FAQs
Investments are a tricky thing when you aren’t sure where to begin. That said, it is a great way to make a lot of money quickly. Many people who are wealthy struck it rich with investments. The truth is there’s no one secret to doing well in the market. It’s always a risk, but the goal is to minimize your risks.

You want to diversify your portfolio, which allows you take a hit here and there if the market goes downhill. The worst investment move you can make is piling all of your money in one place in hopes of making it big in that single investment.

Investment FAQs for Beginners

Q: How do I know what I should invest in?
A: This is a loaded question, but far and wide the idea is you don’t want to invest in anything you don’t understand.  A broker or website may throw around financial lingo that is above your head. Let it stay there for the time being or you risk losing your money. You never want to make a commitment or invest in something that you don’t understand. We aren’t saying you need to be an expert in the realm in which you financially dabble, but you should understand the company’s objectives and how they are relevant to the current market.

Q: How much should I pay for investing my money?
A: Local brokers are in for a rude awakening because the Internet is allowing people to do their own research and broker their own deals. Right now, there’s no real purpose in having a middleman that gets a percentage of your initial investments. If the local broker is saying he gets 5%, he is taking you for a ride. You should spend about 1-2% on any investing firm, including those online who are professionals at managing your money wisely. For new investors, working with an online investing firm allows you to see trends in the market and gauge how your investments are doing without feeling directly responsible. These firms also provide you with guidance and advice that are invaluable to the green investor.

Q: How long is it before I see profitable return on my investments?
A: The first thing to understand when entering the stock market is that it’s a marathon, not a sprint. Yes, there are get-rich-quick stories, but the vast majority of investors have their money invested for a very long time. They may see the highs and lows of the market, but the overall purpose is to make plenty of money that can further be invested, thus doubling or tripling your profits. Be prepared to see the market fluctuate and never invest money that you can’t afford to lose. The stock market works much like a gambling table, and while you can make informed decisions based on your financial situation, you are always putting your money out there with the risk that it won’t come back.

Beginners to the stock market should be prepared for a long term commitment and expect to see profitable shares within a few years when working with the right financial services team.

This article was contributed by the experts at Orbis Global. Orbis Global MRM delivers everything you need with one solution to efficiently manage your global marketing operations.

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