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Investing Tips: So you’d like to start investing?

Money can be made through hard work and a lot of sacrifice. That is the lane most of us take and usually never make any big money. But there are completely legal ways of earning more money than your salary brings on an annual basis. What you need is an entrepreneurial spirit and some pre-saved cash.

Investing Tips: Opt for bonds or stocks?

The basic difference between bonds and stocks is that investing in stocks means that you get a part of an ownership when you buy stocks of a certain company. If the company whose stocks you own earns money over a period of time, the surplus is then distributed to its stock holders in the form of dividends. However, if a company does not conduct business in a successful manner for a period of time, stocks lose their value and the holders lose money.

Bonds, on the other hand, represent a long-term investment. They are issued by companies and corporations that are bound to pay the agreed amount at a specific date. Over a longer period of time, bonds can be a pretty attractive choice. Also, bondholders earn money from interests.

What stocks matter?

If you are already a major investor with a lot of assets, it is not highly probable that you are reading this. But stock rookies will find some interesting information. For instance, if you want to invest only a little money for starters, to see what it looks like, penny stocks should be the right financial decision for a beginner. Their prices are usually low (up to $5 a piece), since they belong to smaller businesses and companies and are often exposed to risky ventures. They are also perceived as being prone to different frauds. It might be a case if you are at the same time gullible and greedy. But if you wish to win on penny stocks, you first need to learn some basics of the stock market.

Mastering Additional Skills

Once you have learned about the basics of stock market in general and penny stocks in particular; it is time for you to start thinking about whether you have the computer and IT skills to be as successful as you can be. Namely, penny stock trading is done exclusively online and once you start being very serious about it, you will realize that there are all kinds of tools to use, analyses to do and more. If you are not that great with computers, it might be time for you to consider some IT training programs and brush up on those skills. Also, you might want to learn a few things about risk evaluation and other tangential skills that you might find useful when trading in penny stocks.

How to play safe and stay sound

Financial shortcuts, i.e. earning money in ways different from a regular 9-5 job often carry a certain amount of hazard. On the other hand, riding on a public bus to work can also turn out to be dangerous, especially if you decide to stick your head out of the window. The same goes with stock trading. If you do not play hazardous moves, this kind of investment can bring a substantial amount of money over a period of time.

First of all, you have to follow the market and analyze trends. When do other holders sell their stocks? At the peaks or before the price hits the peak? How does the market react to that?

After that, decide what stock advisor to turn to. Internet forums and financial newspapers can help you make up your mind.

In addition, avoid concentrating money in one place. Invest in stocks of several companies to see the outcome. Then you could invest more money in some steady stocks and start working with stocks in a more determined way.

Dealing with stocks will demand some time for learning tricks and gaining experience, as in every other job. If you stay patient and modest about expectations and invest as we have suggested, you could really make it a great business option.

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