If you haven’t the first clue how to start investing, there’s never been a better time to learn than right now! Whether you’re looking to stockpile some cash for a rainy day or have a specific financial goal you’re saving for, investing is definitely a worthwhile option. Although, a very daunting one, especially if you don’t know the first thing about how to start investing. Fortunately, there are some great investment options for people that don’t really know what they’re doing yet.
This is seriously a huge relief since many amateur investors have found themselves in situations where they’re looking at investing the same way they would say, gambling. Many newbie investors have rushed into an opportunity because they saw it as “fast or easy money”. But investing requires patience, research and can last a lifetime, as it’s considered more of the “long game”. Investing and gambling both involve risk and choice, but that’s pretty much where the comparison ends.
In fact, ideally, you should be in a fairly strong financial position when you begin investing and you should always consider whether you are truly ready. What I mean by that, and I cannot stress this enough, is that you should only ever invest what you can afford to lose. Now, assuming you relate to the person I just described, the following are the best options for those of you who are completely clueless about how to start investing!
How To Start Investing When You Are Completely Clueless
Start Investing With Robo-Advisors
Wouldn’t it be great if you could just hand someone the money you want to invest and have them do all the thinking and hard work for you? Well, that fantasy is actually a completely legit reality since it’s basically the job description of a Financial Advisor.
Unfortunately, they’re not really the best option for someone just starting out, as they tend to be expensive! However, modern technology has developed a genius solution in the form of Robo-advisors. You read that right… “robot” advisors (the future IS here!).
Robo-advisors are financial advisors that provide investment management online with little to no human intervention whatsoever. They provide digital financial advice based on mathematical rules or algorithms that build your portfolio and make trades for you. The idea is that you don’t need to be hands-on or know too much while learning how to make sensible investing decisions.
Learn About Forex Trading
Forex (foreign exchange) trading simply stands for ‘trading currency’. Currencies are always quoted in pairs so that one values against the other. They’re like this so that one currency pair never trades independently from other pairs.
Forex trading is a great option for beginners because it’s simple, quite flexible, and you can start with a relatively small amount of money.
You can trade Forex online and, as long as you’re willing to do the research, you can make some good money. You can also trade 24/7, which makes it easy to get your money out if things aren’t going your way.
Try Out Some Investment Apps
There are some great investment apps that work similarly to Robo-advisors, doing all of the hard work for you. Wombat is a brilliant app for beginners that allows users to connect their bank account, then round up their spare change from purchases to invest!
This is the perfect way to learn about investing while literally, only risking spare change! You don’t want to dip into your savings account, not as a newbie. It’s only natural to be concerned about investing if you don’t have a clue as to what you are doing.
Once you are a bit more confident, you can start depositing larger sums and making bigger investments. Just make sure that you’re never risking too much money! You’ll still be able to watch your portfolio grow as you become more knowledgeable about investing.
Jessica Rose Adams
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