Investing for Dummies

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By kayse


You don't have to be a Genious to Start Investing Successfully

If you are looking for investing for dummies, I have good news for you.  Investing doesn't have to be complicated at all.  You can make it complicated, but if you are a beginner and just want to make money, you can start small and still do very well.

You first need to know what is available to you.  What can you invest in?  The most common investments done by ordinary people are investments you have probably heard of, even if you don't know a lot about them.  They include stocks, bonds, and mutual funds.  Exchanging currency is probably the most common investment because foreign currency is exchanged much more than stocks or bonds, but we will start simple.

If you want to make the most money, you should go with stocks.  They typically make more money than bonds.  You could invest in junk bonds and make a lot, but they are risky and can lose you a lot of money.  Bonds are safer than stocks, especially government bonds, but safe bonds don't usually make a lot of money.

If you want to invest in stocks, all you have to do is set up an account with a brokerage firm and tell them what stocks you want and how much.  Before you do any of that, you need to make sure you know all you about stocks and then you need to research companies to help you choose stocks.

Bonds can also be bought with a broker, or if you want to buy government bonds, you can buy them through your local bank or online at treasury.gov.  It's really simple and you can learn all you need to know about government bonds there.

If you really want to make investing easy, and this is truly investing for dummies, you should invest in mutual funds.  Mutual funds aren't entirely different from stocks and bonds.  In fact they include stocks, bonds, or a mix of both.  A mutual fund is when a whole bunch of people pool their money together and buy a whole bunch of stocks and/or bonds or other investments at once.

The benefits of mutual funds is that a fund manager chooses them for you and they are professionals.  Also, you are invested in a ton of different investments which means excellent diversification and reduced risk.  If you really want to make money investing but you don't feel like becoming an investment genious or putting a ton of time into it, invest in a mutual fund.

If you are worried about choosing a mutual fund, go with an index mutual funds.  Index mutual funds include all the stocks within an index such as the DOW (DJIA) or the S&P 500.  An index is a sample collection of companies in the whole stock market.  This means that whatever they do is usually about the average of what the markets are doing as a whole.  You get diversification and can at least earn the historical average return in the stock market which over the past 100 years or so has been approximately 10 to 13 percent.  Just so you novices know, that is a really good number!


Investing makes you money...
Investing makes you money...

Investing for Dummies can Make you Money

You're not a dummie. Just the fact that you are looking for a way to learn how to invest proves that you aren't. You are out to increase your wealth. You have some extra cash and have decided that you want to invest that money so that it grows all by itself. If that's not incredibly smart, I don't know what is!

Do some research and spend some time learning. In the long run, you will see the benefits. Your wealth will begin to grow and your financial worries will begin to dissipate. Just make sure you do the research. Whether your investing in a mutual fund or choosing your own stocks, you want to have at least a basic understanding of investing as a whole so that you know what's going on and you know if your money is doing what it's supposed to be doing.

Getting Started in the Beginning Investing for Dummies

Get Started

Above is a great video on investing for dummies, or a better term, investing for the beginner.  You can learn how to start even if you don't have much to start with.  You don't need a whole lot to start, but getting more to get started wouldn't hurt.

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Mitch King profile image

Mitch King  says:
6 months ago

great advice for those looking at jumping into things! One thing that is very important is to choose the right broker. Do your research!! You won't regret it.

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