Investing for Dummies - UK, 4th UK Edition

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If you are like most people, as almost all of us are, you are an employee of an employer, either the state or a private individual, that every month pays you the hours of work that you have done for him . The explanations of what “ investing money” means can be many, more or less technical, more or less detailed. But the definition we like the most is only one. Owning shares in the company allows you to share in the profits of the company but does not allow you to make any day-to-day decisions based on the how the company is operated.

This is where you may have heard of a corporate bond, a municipal bond, or a treasury bond. Simply put, the type of entity that issued the bond usually gives away the name of that type of bond. Whether you're regularly contributing enough to your investments (chances are you'll be able to increase your contributions over time). It's therefore no surprise that large publishing houses such as Wiley and Pearson publish over 100 finance titles each year. A natural consequence of this high volume of financial transactions is that the UK also employs a lot of accountants to help record, monitor and analyse the activity. Auditors work to observe the output of accountants and provide assurance that financial figures are materially correct.You could also invest smaller amounts in other asset types, such as precious metals like gold and silver. It’s a relative and personal amount for each one of us, but almost always in our head takes the form of a value that will be very difficult to obtain and use for any investment purpose. Well, will your goal be closer 2 years from now if you don’t even begin?”. How to set a proper investment goal for you Geography, such as taking advantage of a booming American or Indian economy while European companies stagnate You will then learn how Social Trading works. It’s an innovative form of investment based on Forex, which will allow you to invest today without necessarily becoming an expert in this market.

From one point of view we can say that bonds are risk-free investment, although they are not. The companies can still fail and therefore no longer fulfill their debts, and never as in recent years we have had firsthand experience of the fact that states themselves may go bankrupt (see Argentina). Am I comfortable tying my money up in investments for at least five years? (if not, it might not be a good idea to invest) Moreover, such a view can help you in case you are thinking to combine several of these tools in a diversified portfolio, including among them Social Trading the way we are going to show you in the future courses. So, to those who think that we can invest just by having a large capital and managing to get a large percentage of return, you can now explain that there is another way, which does not require large capital or large percentages, but just a little patience to allow time to multiply your money. Why Investing in knowledge is the best investment Ignore soothsayers and prognosticators. In the world of investing, don’t trust anyone to have ESP! Predicting the future is nearly impossible. Select and hold good investments for the long term. Don’t try to time when to be in or out of a particular investment.Knowing yourself also means being aware of the condition or situation you find yourself in. A pensioner may have a different time horizon from a young worker just come of age. But not necessarily. With these InvestinGoal courses you have the chance to discover the fundamentals of the art of investing, and then specialize in the most innovative, called Social Trading. Once you have reasoned about how you want to invest, how much you want to invest, on who you want to invest, and you’ve done all the calculations, considering the reasonable expectations but especially the risk you want to take, at that point you have to let this strategy run with your money for at least one year. Study, set a strategy and follow it, both when it wins and when it loses if the initial conditions are still there.

The time factor is also the reason why many prefer to entrust their money to other investors, so that the latters will make the choices for them. They didn’t have the time, and maybe also the desire, to learn how to do it on their own. Taking bonds into consideration, there are different categories based on their level of safety and return, and to identify them we use the rating agencies (Standard & Poor’s, Moody’s and Fitch) and the so-called “Rate” (ie votes like AAA, AA+, BBB etc).

Major types of financial investment instruments

This scale means that a total of 1.1m workers (3.3% of the working population) have a job in finance.

It’s important to know all of them because one of the first rule of a good investment is to diversify risk by investing in different types of assets, what in technical jargon is knows ad diversifing the investment portfolio. From Investopedia “ A bond is a debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate.“ Obviously, with a lot of intelligence and wisdom, using only his own experience, an investor could reach the same conclusions and principles buy himself, but it would take a long time and maybe even a lot of money before he get to the same goal. And moreover, if he’s not even wise, he can continue to repeat the same mistakes to infinity. The art of investing: the salient topics As a shareholder in the company, you are investing your money into a company as capital without a guaranteed return. This is the risky part. Let’s start by making a clarification: when you invest there are no enemies, there are no good nor bad ones. When you invest, there are the goal you want to achieve, and the related risks. So, we can start by changing the Sun Tzu sentence in “If you know your goals and know yourself, even in a hundred investment you will NOT be in danger.” First investment goal: being master of your own money

Investing money: the two main roads you can use

How many times have we tried to learn something new, some new technique that could satisfy some of our desire or need, but then, since the results was not coming shortly, we gave up immediately by saying “it doesn’t work”. Investing is essentially buying something that you think you will be able to sell at a higher price later on.