For many of us, the world of investing has always been a tightly-kept secret. We may even have some investments but still do not understand the basic underlying concepts of playing the market. Placing money on something that is not a sure bet can be scary, especially for someone who is not knowledgeable about the consequences.
People should learn about investing before, rather than after, they enter the market. This holds true whether they want to buy gold coins for their portfolio or invest in stocks or bonds. Every investment adds different value and has different positive and negative aspects. Investments should always be compatible with the financial goals of the individual.
The Internet is filled with sites offering basic investment tutorials. The Motley Fool and Investopedia are two very popular sites. Reading the Motley Fool Investing 101 articles tells us why to invest, how to do it, what to invest in, and when is the proper time to make an investment. In addition to articles, Investopedia features definitions and examples regarding investment concepts ranging from simple to complex.
Financial and investment magazines like Money, Forbes, and Kiplinger are easy reads and keep individuals abreast of goings-on in the investment marketplace. Investing for Dummies and Stock Investing for Dummies are two great books designed for people who have no investment experience. These Wall Street Journal bestsellers pack everything you need to know about investing into a concise manual and even provide assistance with developing an investment strategy.
One of the best ways to learn is by doing and some financial advisory firms allow customers to establish mock accounts. Individuals can track stock performance and learn how to use online investing software before making a real investment. Sites like ING Direct allow investors to learn to trade stock for just a few dollars.