Staring your investing journey to make more from your income, save up and learn more about investing? There is a lot of information about investing and not a lot of it is easy to understand, so here is a guide for beginners learn how to invest so you can get started.

 

To start, what is investing?

Investing is when you put money into something in hopes to gain a profit in the future. You have heard of the stock market, where you can buy a share in a company so you are a shareholder, the value of your share will increase when the company is succeeding earning you money. Likewise, if the company takes a decline then so will the value of your shares, potentially losing your money. This is why it is best to understand your risk tolerance as well as your financial status before beginning.

You can invest in multiple avenues, find out which type of investing is best for you to begin. Common forms for beginners cash investing or buying shares on the stock market.

 

Ways of Investing

There are different ways of investing, for when you begin you should decide which type will help you reach your goals as well as match your personal risk tolerance.

 

  • Exchange traded fund (ETF)

You get a bundle of assets you can buy and sell which diversifies your portfolio whilst keeping the risk factor to a minimum. Instead of having shares in individual stocks this is a way to invest in multiple companies in one pot in order to keep.

 

  • Individual stock

Investing in one business and putting more into it could offer you a bigger return. There is a bigger risk of losing money along with a bigger chance of increasing the value.

 

You can do it from your phone

You will need a trading platform to begin investing, many have an app so you can keep an eye on it whenever you like. For some you will have to pay a fee to use the platform, this a service fee for the platform to buy shares on your behalf.