“Investing” itself is not just stocks and shares. It’s also not just forex and its also not just investing in small businesses. There are 100s of types of investing you can use to create a positive ROI for yourself or your business. Take property for example, these are types of investments. Renting them out or doing them up and then selling straight away is a way to generate a positive ROI for your investment. But today we will be talking about the 3 primary types of investing when it comes to research, data driven, market investing strategies. These are 3 strategies and types I use on a daily basis to make the majority of my income I hope you enjoy the article and if you did remember to share and subscribe!
Type 1 – Stocks & Shares
Generally the most commonly known “type” of trading. Most people think of wall street, high buildings, shady characters like the wolf of wall street or Gordon Gekko when they think of stocks and shares. And although that could be the case, its very different nowadays. Some of the most successful traders I’ve ever meet are very shy, polite and more importantly patience individuals. It’s strange as you don’t assume stock traders with these characteristics but I think its essential nowadays. Remember you can trade stocks with $100 and an internet connection.
This is the type of trading I would recommend to anyone looking to get started in the broad field of finance and investing. It is very easy to understand and there is more good information online than the below 2 elements, which generally have miscommunication about how easy it is to make “all of the monies!” So if you are brand new, get started on shares and you can come back to the below 2 options when you have the time and capital.
Type 2 – Forex Trading (Current / Foreign Exchange)
Generally seen as the type of trading that you need a heck of a lot of capital to ever get into. The currency markets are amongst the most volatile in the world, with 5 trillion dollars traded on these markets every day. Yes that’s Trillion! With a T!
But the old misconceptions about currency trading should be forgotten. Now similar to stocks you can trade currencies if you have an internet connection and a few bucks to your name. Although saying this I would in fact recommend waiting until you have a few grand to invest as the margins are a lot slimmer and generally it is considered more difficult than share trading. You can find the basics about forex trading from sites like Babypips or elite forex trading.
Type 3 – Investing in Businesses Directly | Venture Capitalist
Finally we come to the venture capitalist option. This is generally later in your investment journey and when you are looking for the longer term 7/8 figure payday. For example the early investors in companies such as Apple, Microsoft, Uber, Airbnb etc have all received great ROI, even though they have technically not “cashed out” yet. When these companies do get sold off they will receive shares greater than $10,000,000 in most cases, all from a very low initial investment. These are the types of companies you are looking for, but at the end of the day you may also invest in a smaller tech firm that doesn’t go on to become the next Uber or Airbnb. These are the decisions that you have to make.
Being a VC is also generally seen as less time consuming but more time-taking. For example you might only review 3 businesses that you want to invest in and select 1 for a $200,000 investment. Once this is complete you have to essentially sit-back until the company grows and eventually floats on the markets or sells to someone else. It’s a longer process than making a forex trade or investing in the stock market. But the rewards are larger if you get your investment correct!
Hope that made some sense to newbie investors, below is a very good video, I personally really liked when I got started in trading and I hope you will like it too. That’s going to be all from me, thanks for reading and as always remember to subscribe in the sidebar if you haven’t already and share this post to help us attract new visitors and readers! Thanks, Hezbo.