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Investing For Beginners: A Quick Beginners Investing Guide



Investing For Beginners

This guide will walk you through how you make your first investment as a complete beginner. Get an overview over investing here.

What is an Investment?

Investments or investing is a long-term plan to utilize and grow your money and let your capital work for you. An investment is taking risk and therefore a gamble: compared to the security of guaranteed return. You are risking your money in order to potentially gain more money in the future. Often the higher risk associated with the investment means higher potential returns.

You can invest in almost anything:

  • Bonds
  • Shares
  • Government bonds
  • US Property market
  • Gold
  • Crypto
  • Funds

… and much more.

For most investors investing is however putting money in the stock market.


Putting money in the stock market is what this guide will cover and will be a great guide for investering for begyndere. So how does a beginner start invest in the stock market?

Firstly, you need to open a brokerage account. There are many great brokers online we however prefer eToro for beginners due to them having no brokerage fees making it perfect for new investors investing smaller amount.

How Does the Stock Market Work?

Trying to keep is as simple and beginner friendly as possible for the purposes of this guide. The stock market is simply a place where sellers and buyers meet to exchange company shares. Each share being a tiny part of a large company listed on an exchange.

So what are shares and why do they exist? They help growing and potentially boost profits of a business providing them capital to further grow their business. You buy shares if you think this is a good business and more money would help them grow their profits even further.

So what do you get in return? Well if the company does well more investors will be interested in owning shares of that particular company and will buy shares. This results in your shares increasing and suddenly your investment starts to grow from your initial buy point.

What kind of growth is realistic from Stock Investing?

This is a common question for new investors, since they want to answer if it would be worth for them risking their hard-earned money in the stock market. Let’s be blunt: we can’t actually determine how much you will gain or lose buying stocks. But let’s give you a rough estimate…

With a savings account being at historical low levels around 1% – the incentive to get higher returns elsewhere has never been stronger.

You would of course rather prefer earning 5-8% yearly compared to a measly 1%, but this requires increased risk. As mentioned previously higher risk = higher reward. Investing is risky and therefore rewards you for taking this risk, only invest what you can afford to lose.

5 Golden Rules For Investing

  1. Don’t put all your eggs in one basket. Always diversify your risk as a beginner we always recommend starting with an index for example the S&P 500
  2. The higher return you want requires you to take on more risk.
  3. Don’t panic. Investments will move up and down throughout the day. Don’t be tempted to panic sell hold you investment and follow your strategy
  4. Review your portfolio. Quarterly or yearly go over your portfolio, maybe that oil company you bought isn’t as attractive anymore with energy moving towards greener alternatives.
  5. If you are saving short term, then don’t take on too much risk. You need to be invested at least 5 years in order to benefits from the risk exposure of the stock market.

Is Investing Right for you?

Over the long run, stocks and shares have outperformed saving cash in a savings account. This has been proven again and again.

Therefore it is very relevant to have some exposure to the stock market in order to get more out of your money. There is however no guarantee for this. Its all about personal circumstances. You might soon retire and would not want to take unnecessary risk with your money or you might be young and willing to take on more risk. It all depends on what you believe and what certain life situation you are in right now.

Evaluate your goals and form a strategy of where you will be in 10, 20 or 30 years and devise a investing strategy that fits your personal life.

Closing Thoughts

Closing Thoughts
Closing Thoughts

It doesn’t matter if you are a complete beginner or a seasoned investor, remember to don’t put on more risk than you are willing to lose, but investing can be very profitable if done right.

Investing is a fun hobby and a great way to build financial freedom by letting your capital and hard-earned money work for you while you do other things.

Also Read: Are Bitcoin Transactions Anonymous? Everything Explained

Jyothir Adithya is a Full-Time Mechanical Engineer who works and studies about Automobiles and their Technologies. He now Helps in writing about Automobile Technologies at The Tech Vamps.

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Twitter Considers paying its Employees in Bitcoin




While no changes have been made yet, Twitter is considering paying its staff in bitcoin. In a TV interview, Twitter CFO Ned Segal said that the tech giant is considering integrating bitcoin, including payment options, into its finances.

Twitter is actually watching and looking closely at what other businesses do to see what can be learned from them, Segal said.

“In an interview with CNBC, Segal said, “We have done a lot of upfront thought to understand how we could pay workers if they ask to be paid in bitcoin, how we might pay a vendor if they asked to be paid in bitcoin and if we need to have bitcoin on our balance sheet.

“We want to be thoughtful about it over time, but we haven’t made any changes yet,” he added.

Twitter CEO Jack Dorsey is a bitcoin supporter and his Twitter profile has a #bitcoin tag. Dorsey is also the CEO of Square payments firm, which reportedly bought bitcoin worth $50 million in October last year. He also set up a small team called Square Crypto, dedicated to encouraging the growth of bitcoin.

The news comes days after $1.5 billion was invested in the cryptocurrency by Elon Musk-backed Tesla. Tesla’s 10-K filing to the United States Securities and Exchange Commission (SEC) on Monday confirmed the investment news. Tesla also discussed the possibility, in the near future, of accepting bitcoin payments. The current value of Bitcoin is about $47,000.41, which exceeds Rs 34 lakh.

During the chat, Musk also shared his support for bitcoin, “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin. I think bitcoin is really on the verge of getting broad acceptance by conventional finance people,” he said during a discussion at the Clubhouse.

In the past, Musk has noted that cryptocurrencies, such as bitcoin, may be the foundation for the future Mars economy. In a reaction to a post, he also wrote “Mars Economy Will Run on Crypto.” Musk’s SpaceX company’s Mars program essentially aims to colonize the world.

The news comes days after $1.5 billion was invested in the cryptocurrency by Elon Musk-backed Tesla. Tesla’s 10-K filing to the United States Securities and Exchange Commission (SEC) on Monday confirmed the investment news. Tesla also discussed the possibility, in the near future, of accepting bitcoin payments. The current value of Bitcoin is about $47,000.41, which exceeds Rs 34 lakh.

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6 Rules for Being a Successful Trader




You are on the right page if you are new to options trading. We are going to share with you 6 tips in this article that will help you succeed as a trader. With these tips on your mind, in order to get closer to your success, you will prevent common errors and adopt the right strategies. Let’s find out some straightforward tips without further ado.

1.Do Not Invest Too Much

You do not want to put all your money at risk if you want to be profitable as a trader. You’re going to retire one day and you’ll need plenty of money to lead a decent life. Therefore, you may want to conservatively invest your cash.

While you can use the money you’ve saved from time to time for a day’s trade, always try to be on the safe side. In other words, the money you can’t afford to lose shouldn’t be wasted.

2. Have Patience

Another indication of a great trader is that, on a regular basis, they do not trade. So, what you need to do is take advantage of the resources that can fulfill your requirements.

Grabbing any chance you can find is not a good idea. Only because there is an option available, you do not want to go against your own decision. You must have a good plan in place and be vigilant at all times.

3. Be Under Control

You have to have a good trading strategy in place, and there’s nothing you can do against it. You don’t want to adopt impulsive actions if you’re selling on your own. You don’t want to be greedy, because a lot of money will cost you a lot.

If you think that in a single day you can get rich, you are making a grave mistake. You must be disciplined at all times.

4. Take Opportunities and Not Miss Them  

Often, in the beginning, new traders appear to be overwhelmed. They are too scared to exploit the opportunities that arise in their path. But as long as you are disciplined and have a good strategy to execute, you don’t need to worry.

So, there’s no need to be afraid to press the button. You will certainly achieve the success you want if you are patient and disciplined.

5. Do Not Take a Great Deal of Trouble

As I said earlier, spending too much money in one trade is not a good idea. Not only would this put you at greater risk, but it will cause you to miss a lot of opportunities down the road as well. You can, therefore, only invest 10% of the amount of money you have set aside for trading. This is going to allow you to be on the safe side.

6. Experience is your Best Bet

Owing to their grave failures, traders suffer from losses on a regular basis. So, all you need to do is study and follow a rule-based approach from others. You should always try to be yourself, apart from this, and never try to cross the line.

My Thoughts

Long story short, we recommend that you take these measures if you want to be profitable as an options trader. This will allow you to be on the safe side and to prevent the usual mistakes along this trip that can make you suffer a loss.

We recommend that you go to OptionsGeek today if you are searching for the best trading framework for options. They deliver wonderful services.

Also Read: Investing For Beginners: A Quick Beginners Investing Guide

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