Investment Basics: About Investing in financial instruments

Investment basics

Investment basics - it will help to reconsider your current attitude to money and will change your life for the better. I suggest reading a short article on investing.

Investing is investing in work to launch or expand a business project — or to buy an asset or share — where these funds are then directed to work with the goal of generating income and increasing value over time. The term "investment" may refer to any method used to generate future income.

So what is investing? Everyone probably heard this word, but only a few tried to delve into and figure out what it really is. Most people identify the word investment with very rich people, and if so, then it makes no sense to delve into. "That's when there will be a lot of money, then maybe I'll do it," - approximately such thoughts revolve in the head of an ordinary person.

Yes, it's true, all rich people really do invest. But the idea that to delve into and possibly engage in investing should only begin when a lot of money appears, is fundamentally untrue.

Have you ever wondered why rich people are rich, and every year their wealth only increases? And here comes the biggest secret of the rich. Yes, because they are always and everywhere engaged in investing. They are financially educated, and pass on the practical nuances of financial literacy from generation to generation. And why do you think that schools and institutes do not teach financial literacy? And what they teach is a general theory that is far from the realities of life. Is it an accident or a whim of the rich? And do not teach around the world. Yes, because it is beneficial for the rich that the population would be financially illiterate and work all their lives for their meager salaries, and buy goods (liabilities) produced at their plants and factories on credit. And they own factories, factories, real estate, securities, profitably invest in promising businesses, in valuable metals, in stocks, in a word - in assets.

So, let's analyze the meaning of these two words from the financial vocabulary: liabilities and assets. In simple words, liabilities are mainly goods that people buy, and the price of which after purchase only decreases over time (for example: a new refrigerator, TV, phone, new car for personal use).

Assets are something that over time can be sold for a great price or, with the help of which you can make money. For example: the same car, only not for personal use, but for working in a taxi; real estate in some promising area; precious metals (better after a wave of fall); and of course, the most invaluable asset is knowledge that you can apply to make good money.

As you can see, the same thing can be both a liability and an asset. It all depends on how the person plans to use it. In short, once again, liabilities are those that fall in price over time (takes money), and assets are those that rise in price (add money).

Therefore, investing is the process of choosing and investing money (buying an asset) in the place where it is expected to rise in price in the future, or where you can make good money. For example: in securities (shares of enterprises, certificates, bonds), Forex trading, options, in real estate, in precious metals (gold, silver), cryptocurrency (bitcoin, etc), in stocks, in business. Where you can invest and earn money.

Most people think that to invest in listed and not listed assets you need to have a lot of money. I want to dispel this myth, and I will say that you can start investing even with $10. And it is true! To start investing in some assets, you need very small amounts, in others - larger amounts. Some assets can make a small profit, but with less risk, while others can make a big one, but with more risk. For some assets, the waiting time for profits is relatively short, while for others it takes years to wait. In this case, you must always remember and be prepared that you can lose an asset.

But the rich are doing it. So it's profitable. The only difficulty is the choice of an investment object (instrument), which over time will rise in price and give a profit to the investor, as well as the moment of sale of the asset. For these purposes, the rich, of course, additionally use the services of experts who are paid decent remuneration.

But do not worry. The main desire is to take action. I give information where, and why exactly there, I invest. You can invest there, and at the same time gain experience. For this you need very small amounts and in time 10-15 minutes for monitoring once a week.

And now to summarize the above, which will be at the same time a wish. I wish you to create assets so that the money works for you, and not you for money. And the sooner you realize this, the better. After all, time is our main asset.

Important information: Trading in derivative financial instruments brings a high level of investment income, but is also associated with the possibility of losing your investment. Before bidding, it is recommended that you log in and familiarize yourself with the terms of trade presented on the olymptrade.com website.

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Tags: investment basics, about investing