Here’s a List of Different Investment Strategies For Beginning Investors:

Their Pros, Cons, And Why Forex Trading is One of The Best Investment Skills You Could Ever Learn

There are 4 different ways to make money in this world. And for thousands of years, it has virtually remained the same.

Now the methods, means, and mediums have changed, tech has changed, titles have changed and the whole world has changed, however these basic principles of making money have remained the same. So as a Forex Trader and investor, whether you’re new or have been in the game for a while you understand a couple of things.

You would rather make money through investing than working a job.

There Are ONLY 4 Ways to Make Money

Matter of fact, Investing still ranks the highest (or best) way to earn money and always has. According to Robert Kiyosaki’s “Cash Flow Quadrant”, The first (and worst way) to make money is working a job or being an “employee.” There’s nothing wrong with being an employee but it’s important to remember that employees earn the least amount of income in this quadrant unless of course, you’re jobless.

The next best option, which usually comes with better pay is being “self-employed.” This simply means you work for yourself and maybe even have a few employees or contractors to do some of your work for you. The income potential is better because you can charge what you’re worth but it also comes with more risk. You have to learn how to get clients or customers, you have to deal with financial stresses and uncertainty that being an employee doesn’t have to. More risk but better pay. People at this level “own a job.”

The 2nd best option for making money is owning a business. “Business Owners” have a major advantage in income potential to comparatively to the first two groups because they are more focused on growth and systems than “work.” In other words, as a business owner, you “own a system.” And this is important because systems are infinitely scalable whereas people are not.

Now we arrive at the very best way to earn money which is investing. “Investors” have the best opportunity to create an income because they make their “Money work for them.” Its the only way people get wealthy.

You don’t get wealthy working for money. You don’t get wealthy owning a business. Those things can make you rich but to become wealthy you need your money to work for you. Investing is defined as expending money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture.

Now, because investors have such great opportunities to earn massive amounts of money, it’s also important to note that this benefit also comes with its fair share of risk. The bigger the opportunity, the bigger the risk. This is typical of most investment opportunities, not always but mostly.

List of Different Investment Opportunities

As an investor, whether you’re starting with 100 dollars or 10,000+ dollars, you’re stepping into a new future. A future where eventually, as you continually add and increase your investment portfolio (list of things you invest in), you can become a very wealthy person. But, like relationships, you have a choice on where to invest your money. So where do you invest your money?

Here’s the shortlist of your most common investment opportunities, along with their Pro’s and Con’s.

Real Estate: Property consisting of land or buildings.

For most people, this one is usually synonymous with homeownership and closely related to the “white picket fence, American Dream.” For others this means, buying and flipping or buying and holding large amounts of property. Some folks (not all) become very wealthy from buying the right land. But others, for example, like T-Pain, make poor real estate investment choices and lose 40 million dollars within 3 years.

Pros:

• Typically a safer bet or “hedge” against long term losses
• Tax incentives
• Extremely
• Similar to a savings account. Instead of paying rent, over time, you pay yourself.
• Less volatile

Cons:

• Slow money growth unless you’re actively pursuing a career in buying and flipping real estate
• Interest rates on loans and mortgages.
• Requires maintenance and upkeeps
• It requires large sums of money upfront.
• A lot of work.

Stocks: Ownership or interest in a company usually divided into many parts called “shares.”

Everyone has heard of the Nasdaq and S&P 500 Indexes. Indexes are usually a large grouping of stocks, otherwise known as shares in companies. When you buy a stock, in essence, you’re buying a small piece of that company. The more shares you have, the more of that company you won.

Pros:

• Stocks, And in particular, American based stocks typically do really well over time. Over the last 100 years, stocks have only gone up (and the downtimes don’t outweigh the long term upside potential from an index.
• There are extremely low fees involved in purchasing stocks.
• Feeling of ownership and fun when companies you choose to do well.
• BIG returns over time and sometimes even in short amounts of time

Cons:

• One of the most volatile asset classes and easily one of the most unpredictable.
• A lot of variables can hurt our help the company you have shares in from, management, economic shifts, tariffs, costs, and luck.
• Risky
• Lots of ongoing work/research

Bonds: A certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time.

Here, you are basically buying a piece of paper or a loan to the government or a company. So, for example, you could buy 10k bonds. A company may issue 1000 of these 10k bonds because they need an extra 10 million dollars. In return you for owning their bond, they will pay you back the initial amount and interest of the bond.

Pros:

• Usually Stable Investments
• Lower Risk
• More likely an asset class to protect your money over time
• Ability to sell your bond to another investor for the remainder of its time (until maturity)

Cons:

• Low Returns
• It usually takes a long time to grow your money.
• Companies can default on bonds (meaning they go bankrupt and cannot pay you back)

Investment Funds: Usually an Account where you give a “fund manager” or “broker” access to pool your money together with other investors to make decisions about how to invest your money into many different things.

Many folks nationwide opt to put their money into funds, whether it’s a 401k from a job or a mutual fund with a personal friend. The options to put your money into a fund are endless. Essentially, you are taking a big chunk or retirement money or savings and entrusting it to someone to invest for you. The problem is, someone is investing for you. It’s a double edged sword because the majority of fund managers don’t beat the markets in a bad year (96% of investors lose your money in down times) and in good market years, everyone wins. A rising tide raises all ships. So it can be a bit misleading when a fund manager touts their returns during a good market year. ANYONE can make money in a good market. Always ask them how they did in a bad market year, that will be your best indicator of whether or not to trust them with your money.

Pros:

• Diversification. Most of the time, these funds will diversify (split your money up into multiple markets) which is good to protect money.
• Expert Management. Although a Great money manager is rare, they do exist, you just have to find one that does good in good markets and doesn’t lose your money in bad markets
• Convenience. You don’t need to spend all of your time managing your own money and researching. Someone else does that for a fee.
• Range. There are many different funds and options to invest in for people who are aggressive or conservative investors.

Cons:

• No Control over your portfolio or how your money is invested.
• Most brokers don’t even invest in their own funds because they fear losing their own money. They get paid to basically gamble with your money. Whether they make you money or lose you money, they still get paid. Glorified gambling.
• High fees. In comparison to most other situations where you invest for yourself, here you are paying the fee to someone to manage your money which is typically higher than other fees when trading for yourself.

Savings: An account that earns small amounts of interest that you store with a bank.

This is typically the “investment” that the majority of adults, children, and the working-class Americans have heard of. And although it’s better to save money than to spend it, very few people actually save. 60% of Americans don’t have more than 1,000 dollars to their name in case of any emergency. Saving is good, But saving for the sake of saving is bad. Save to invest and savings accounts have far more cons than pros. My recommendation, have a savings account and depending on your lifestyle, never keep more than 2,500 to 10,000 in there at a time.

Pros:

• Added security of knowing you have some cash.
• Rainy day fund.
• Essentially Zero risks of losing your money.

Cons:

• You earn virtually zero interest on your savings account.
• You’re paying the bank to loan out your money.
• Your money loses value at a rate of close to 2.8% per year because of inflation.
• Not a tool to create wealth.

Forex: A market where world currencies are traded and traders look to make a profit is on the difference or movement of a price.

This is by far the largest moving money market in the world. Close to 5.3 trillion dollars are traded between investors daily, making this market truly liquid or meaning money constantly moving and flowing. This provides many opportunities to make a lot of money, whether the market moves up or down. Almost like casting your line into a flowing river where 5 trillion fish are swimming at a time, you’re bound to catch your something or lose your bait, either way, its the best and fastest way (in my opinion) to invest and learn.

Pros:

• Liquidity: For every seller, there must also be a buyer. Here there are so many people that you almost ALWAYS sell and buy immediately.
• You can start with virtually nothing. How’s 100 sound?
• Low potential for price manipulation by BIG investors because this market is just too big for them to move the needle on any one trade.
• Potential fast returns if you follow a good mentor and strategy.
• accessibility. Unlike the stock markets here in the US, These markets are open 24/7, 5 days a week because its a worldwide market.
• There are many strategies to have Artificial Intelligence Trade for you and automated systems.
• you can make money when a price goes down or up (unlike stocks and real estate).

Cons:

• Because of its large scale, you must pick the right broker. If you pick the wrong broker in a country that has light regulations (laws to protect you and your money) they could run off with your hard-earned cash.
• Leverage. Although its a cool tool to help small accounts grow quickly, for most beginners, its a double-edged sword and creates for situations where amateurs lose all of their money quickly.
• Not typically “ongoing investments,” meaning you don’t typically sit on “buys” and wait for the value to go up. This market is more so meant for day traders and swing traders.

So there you have it. Our Complete list of major investment opportunities. Sure there are others such as futures, CDs, Options, Commodities, ETFs, Equities and more. But typically those are a bit more for a seasoned investor who really wants to diversity. The ones I have listed above are perfect for anyone starting out and after having tried them all (and holding positions in most) I would say the best and easiest for the beginner to get into is Forex Trading.

Now I may be a bit biased because I’ve spent the most time as a Foreign Currencies trader but I absolutely love the potential and returns I can see here. So, if you want to learn more about Forex Investment Strategies and maybe even dabble in trading for yourself, You can grab my newly released book by clicking here for a free download

In The Money: Million Dollar Forex Trading Secrets From a High School Dropout