As a wise man once said, “the trick to money is having some” and this is the basis of investment. Financial assets fall into different classes and each of these are associated with different levels of liquidity, risk and return. Though many types of investment have the potential to grow into something marvellous, none of them guarantee success.
Some chief investment types are:-
(i) Bonds
(ii) Shares, particularly penny stock
(iii) Property
(iv) Forex
We’re sorry to say it, but there is not any real ‘trick’ to making Easy Damn Money (EDM). Besides having money to make money, you need a fat envelope of information and a knack for risk management. Luck plays a significant role in the whole process but hopefully you’ll be good enough at managing the art of investment without praying for any of it. If you’re not confident enough to take the DIY approach, a managed fund would be a good choice, where so-called experts pool your money together with that of other investors and make all the decisions themselves. Insurance companies are a form of fund management. All you need besides the starting money is to devote some time to research. Look at the track record of different investors, the methods they practice (are they high-risk or low-risk? And which do you prefer?) and administration fees. Compare different products and ‘invest’ if you will, in consulting a financial advisor. It could make a big difference to the end result.
The most common way of getting hold of some EDM is by saving it all in a bank account for a fixed term while interest slowly gathers on the deposited sum. With 100% liquidity and negligible risk, this seems a pretty good choice were it not for the fact that we as a race can be inherently greedy and the returns of the banking system are just too low to excite anyone. Also, fixed deposits aren’t too great for medium or long term goals.
Bonds are quite straightforward. They are very official ‘IOUs’ issued by banks, governments and companies with interest attached. You buy a bond for a nominal/principal amount and are thus an investor and creditor. Then you just wait a pre-defined term until the bond ‘matures’ and the issuer pays the money back with interest. The minimum bond price is about USD$5000 and government bonds are auctioned off rather than sold. As stated before, there is just the issue of having plenty of information at your disposal. Keep an eye out for callable bonds. These are bonds which can be repaid before the maturity date and they are associated with high returns. There are different varieties of callable bonds, some with stricter rules than others. An American callable for instance, can be repaid at any date before maturity whereas a European callable has just one fixed date.
A share is also bought, but unlike a bond it has no maturity date. You could lose everything as well as gain some EDM. When you the shares of a public company listed on a stock exchange you are buying the right to share in the future of that company because you’ve just invested in it. Returns may come through annual dividends paid out to shareholders or by selling your shares at a higher price. It’s crucial to watch risk management when you play with the stock market. Don’t spend money you can’t afford to lose because shares are just as volatile as a vat of sulphuric acid. The cheapest shares out there are Penny Stocks, which cost below USD$5 and seduce investors by the promise of magnificent returns. It’s not all fable; Microsoft shares were once penny stock. It simply comes down to betting on the right horse and avoiding scams.
The property market works on a concept similar to the stock market, with the exception of annual dividends. It has a lot to do with obtaining prior information, making a smart choice and watching trends before resale. Developing rural areas can rise quickly in value especially in places with a high retirement rate where people enjoy building second homes. Newspapers don’t publish articles of massive losses on property value so don’t dive in too quickly. Like the stock market, this is a long-term investment where losses do frequently occur. Read publications on the real estate market and go to important seminars on property.
Home rental is another investment where you can go for a DIY solution to make some of that EDM or utilize the services of a property management company.
Finally we come to foreign exchange which is commonly known as Forex System, where the ‘big boys’ such as central banks and massive corporations like to play. Unless you have sound knowledge of the global economy and plenty of starting money, stay away from the Forex market. A small scale private broker is not going to make returns that large, at least initially because starting small is the only way to start and it involves a lot of practice. Liquidity is extremely high and returns (or losses) are almost instant.
Easy Damn Money is a fact of life. You can get it if you play the cards right and this website alone cannot tutor you in that art. If you’ve never set foot in a business school or the office of a good financial advisor, making amazing returns using the above investments is going to be grim and gruelling. If you cannot spare the time to build up competency, the chances are that you will lose all the money you invest. Consider economic investment as opposed to the financial sort, where instead you will deal with real goods and not concepts wound around ever-fluctuating dimensions.
(i) Bonds
(ii) Shares, particularly penny stock
(iii) Property
(iv) Forex
We’re sorry to say it, but there is not any real ‘trick’ to making Easy Damn Money (EDM). Besides having money to make money, you need a fat envelope of information and a knack for risk management. Luck plays a significant role in the whole process but hopefully you’ll be good enough at managing the art of investment without praying for any of it. If you’re not confident enough to take the DIY approach, a managed fund would be a good choice, where so-called experts pool your money together with that of other investors and make all the decisions themselves. Insurance companies are a form of fund management. All you need besides the starting money is to devote some time to research. Look at the track record of different investors, the methods they practice (are they high-risk or low-risk? And which do you prefer?) and administration fees. Compare different products and ‘invest’ if you will, in consulting a financial advisor. It could make a big difference to the end result.
The most common way of getting hold of some EDM is by saving it all in a bank account for a fixed term while interest slowly gathers on the deposited sum. With 100% liquidity and negligible risk, this seems a pretty good choice were it not for the fact that we as a race can be inherently greedy and the returns of the banking system are just too low to excite anyone. Also, fixed deposits aren’t too great for medium or long term goals.
Bonds are quite straightforward. They are very official ‘IOUs’ issued by banks, governments and companies with interest attached. You buy a bond for a nominal/principal amount and are thus an investor and creditor. Then you just wait a pre-defined term until the bond ‘matures’ and the issuer pays the money back with interest. The minimum bond price is about USD$5000 and government bonds are auctioned off rather than sold. As stated before, there is just the issue of having plenty of information at your disposal. Keep an eye out for callable bonds. These are bonds which can be repaid before the maturity date and they are associated with high returns. There are different varieties of callable bonds, some with stricter rules than others. An American callable for instance, can be repaid at any date before maturity whereas a European callable has just one fixed date.
A share is also bought, but unlike a bond it has no maturity date. You could lose everything as well as gain some EDM. When you the shares of a public company listed on a stock exchange you are buying the right to share in the future of that company because you’ve just invested in it. Returns may come through annual dividends paid out to shareholders or by selling your shares at a higher price. It’s crucial to watch risk management when you play with the stock market. Don’t spend money you can’t afford to lose because shares are just as volatile as a vat of sulphuric acid. The cheapest shares out there are Penny Stocks, which cost below USD$5 and seduce investors by the promise of magnificent returns. It’s not all fable; Microsoft shares were once penny stock. It simply comes down to betting on the right horse and avoiding scams.
The property market works on a concept similar to the stock market, with the exception of annual dividends. It has a lot to do with obtaining prior information, making a smart choice and watching trends before resale. Developing rural areas can rise quickly in value especially in places with a high retirement rate where people enjoy building second homes. Newspapers don’t publish articles of massive losses on property value so don’t dive in too quickly. Like the stock market, this is a long-term investment where losses do frequently occur. Read publications on the real estate market and go to important seminars on property.
Home rental is another investment where you can go for a DIY solution to make some of that EDM or utilize the services of a property management company.
Finally we come to foreign exchange which is commonly known as Forex System, where the ‘big boys’ such as central banks and massive corporations like to play. Unless you have sound knowledge of the global economy and plenty of starting money, stay away from the Forex market. A small scale private broker is not going to make returns that large, at least initially because starting small is the only way to start and it involves a lot of practice. Liquidity is extremely high and returns (or losses) are almost instant.
Easy Damn Money is a fact of life. You can get it if you play the cards right and this website alone cannot tutor you in that art. If you’ve never set foot in a business school or the office of a good financial advisor, making amazing returns using the above investments is going to be grim and gruelling. If you cannot spare the time to build up competency, the chances are that you will lose all the money you invest. Consider economic investment as opposed to the financial sort, where instead you will deal with real goods and not concepts wound around ever-fluctuating dimensions.