For many individuals, the thought of investing their money in stocks, securities and bonds can be a scary proposition. For some, images of Bernard Madoff coupled with the recession makes for a very risky market indeed. You have probably heard of too many banks, insurance companies and investment houses folding under the pressure of the recession as well as the domino effect of fraudulent Ponzi schemes.
For others, you probably think that the investment world is so complicated and complex that it is confusing to all but the likes of Warren Buffett. In many ways, it can be, especially with akjargon.� However, with proper education and training, you can actually make money investing on your own. Here is how to do it.
Begin Your Education
Education empowers individuals to take on and succeed at challenges that previously seemed insurmountable.� You will learn to understand the technical lingo – bid, ask, spread, annual percentage yield, annual percentage rate, to name a few – that goes with each type of investment whether it is a certificate of deposit or a crude oil future.�
You must apply what you learn. Just reading on and on without applying your new knowledge is pointless. You will only learn by taking action, figuring out what works and doing more of the same.
Be Familiar With Tools
You have many online resources that will help you understand the concepts but also assist you in making smarter decisions. Just to name a few of these investment tools, you have stock screeners and filters, visual maps, e-mail alerts, comparison tools for ETF, market and stocks, market tools like ETF tracker as well as various� worksheets and calculators.
Investment Strategies
As mentioned earlier, education and tools alone do not make a wise investor. You still have to apply your intelligence of them so that you can make informed decisions. Some of the lessons that we’ve learned along the years are as follows:
* Always limit your exposure to risk.� Although taking big risks is a given in investments, you have to take calculated risks.� This means that you have to avoid “slippery places” like commodities and short sales.� Instead, stick to safe investments like CDs and proven stocks.� You may not make big money but at least you will not lose big money either.
* Stay in the investment market.� You may experience large blips in your investments due to economic conditions but, by and large, you will still have good returns on your investments when you continue to do your due diligence.
With your education and tools put to the right use, you can and will make money investing on your own. Visit http://www.stock-trading-made-ez.com/ to learn more.
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