(Continued from Determining Where To Invest Your Money, Part 1)
PRACTICE INVESTING ON THE STOCK MARKET
With access to the Internet, you can actually play the stock market with fake money to start with at some sites, in order to get a feel for how it works. Then when you feel confident, you can move on to the real thing.
To start with make-believe investments, do a search with any search engine for Stock Market Games or Stock Market Simulations, and start studying.
Other types of investments outside of the stock market, such as foreign exchange, also known as FOREX, also have make-believe accounts and simulations.
The great thing about FOREX is you don’t have to worry about which stocks to buy. Currency is traded in pairs, and the main pairs you really want to look at all have to do with the American Dollar.
So for example, the American Dollar trading against the Canadian, or against the Euro, or the British pound. You can look at only 6 pairs every day, day after day, and make money, IF you are patient and learn how to spot and ride a trend.
And unlike the stockmarket, you can also make money in FOREX whether your pairs are going up or down. ll you have to do is predict the trend.
As a potential investor, you should read anything you can get your hands on about investing, but start with the beginning investment websites first, and go through them methodically so you don’t get lost or confused. It can certainly be a maze, so if you want to keep it simple, but have some moderate risk tolerance, go for FOREX.
CONSULT A FINANCIAL PLANNER?
Finally, you might want to speak with a financial planner. Tell them your goals, and ask them for their suggestions–this is what they get paid for!
A good financial planner can easily help you determine where to invest your money, and help you set up a workable plan to reach all of your financial goals.
Many will even teach you about investing along the way–make sure you pay attention to what they are telling you, rather than thinking you know best. Resist the temptation to try to get rich quick as well. And always make sure you are not risking more than you can afford.
Knowing your investment goals, and where you want to invest, are two of the cornerstones to successful investing.