There are
several different types of investments, and there are many factors in
determining where you should invest your funds.
Of course,
determining where you will invest begins with researching the various available
types of investments, determining your risk tolerance, and determining your
investment style � along with your financial goals.
If you
were going to purchase a new car, you would do quite a bit of research before
making a final decision and a purchase. You would never consider purchasing a
car that you had not fully looked over and taken for a test drive. Investing
works much the same way.
You will of course learn as much about the investment as possible, and you would want to see how past investors have done as well. It�s common sense!
Learning
about the stock market and investments takes a lot of time� but it is time well
spent. There are numerous books and websites on the topic, and you can even
take college level courses on the topic � which is what stock brokers do. With
access to the Internet, you can actually play the stock market � with fake
money � to get a feel for how it works.
You can
make pretend investments, and see how they do. Do a search with any search
engine for �Stock Market Games� or �Stock Market Simulations.� This is a great
way to start learning about investing in the stock market.
Other
types of investments � outside of the stock market � do not have simulators.
You must learn about those types of investments the hard way � by reading.
As a
potential investor, you should read anything you can get your hands on about
investing�but start with the beginning investment books and websites first.
Otherwise, you will quickly find that you are lost.
Finally,
speak with a financial planner. Tell them your goals, and ask them for their
suggestions � this is what they do! A good financial planner can easily help
you determine where to invest your funds, and help you set up a 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!
Article by: Clem C. Benton, Jr.
http://www.12path.com/1/80/