Everybody wants to make money– A universal truth we cannot deny. The biggest question is how? It seems like everyone is promising something or another and, well.. they don’t ever work out. So how does one determine the best way to invest? The truth lies somewhere in between the following 3 areas:
How much do you have to invest?
This is probably the most important question here. The amount you have to invest will determine the degree of risk and the type of investment you can dabble with. Investing can happen with as little as $100 but your goals have to be realistic accordingly. Contact us to get a realistic idea of how much you should invest.
What degree of risk are you willing to take?
This is the second most important factor to consider. There are folks with over 100K to invest, but their appetite for loss is very small. Panicking, emotional investing & trying to replicate someone else’s path to success are the most common errors people make when they decide to invest. Understand that long term investing and short investing require 2 very different mindsets and the active participation level also differs drastically. Bear in mind, how you handle being down 15-25% of your investment will largely dictate how successful you are.
How much time & patience to you have to learn the craft?
Nothing comes for free. Especially not in 2020, and not in this world called Earth. Everyone is trying to create the next social media platform, while others are desperately trying to find a way to get rich quick. The reality of everything successful is that it requires sweat equity. If you cannot put in time to master your craft each week, this is probably not for you.
Once you’ve answered these questions, you can confidently choose from several safe ways of investing ranging from trading stocks to generating monthly income via Real Estate. I will break down the multiple streams of residual income and the degree of effort and time each take.
Stocks – The stock market is a market place where the common shares of companies are actively traded between the retail public. For the purpose of this conversation, we are the common public and therefore we set the price of a stock, collectively at least. The goal of the stock market is to buy shares of a company at “X” price and sell it at a higher price, “Y”. You can also do the opposite by predicting the price of a stock’s decline and profit off that, a phenomenon better known as shorting. For the sake of simplicity, enhanced equity requirements and in some cases religious restrictions, we will go over only profiting off a company’s common stock gain. The totality of this process can be successfully achieved after understanding a company’s in depth financial status. This includes reading quarterly earnings statements, evaluating leadership, determining demand & analyzing the stock’s performance via technical analysis. For an in depth review of the stock market and how to invest in it, please visit our Stocks & Forex section.
Forex – Forex is the largest trading market in the world. Over 6 trillion dollars are exchanged on a daily basis with the goal of profiting of the rise or fall in currency pairs. Your job is to determine whether a currency will rise against another based off economic and technical conditions. Unlike the stock market, the foreign exchange market remains open 24 hours a day, 5 days a week. You are also given 50x the leverage so your profits can be astronomical in a short period of time. Please review the Stocks & Forex section to get an in-depth understanding of forex.
Options – Options trading relates to the stock market in a way that is far less conventional and has the opportunity for exponential profit and losses accordingly. The goal of options trading is to predict future price movement down to the exact cent. The closer you are in predicting the rise or demise of a stock within a given period of time determines how successful you are. Due to the volatility and religious restrictions for some, many individuals steer clear of this option. (pun intended) If this rollercoaster of a ride entices you, please visit ILMTraders.com for their full gamut of options trading services.
ETF’s – An exchange traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies. ETFs are in many ways similar to mutual funds; however, they are listed on exchanges and ETF shares trade throughout the day just like ordinary stock. The S&P is an example of an ETF. In an ETF, you are investing in a collective body of stocks, bonds and commodities. So if there are stocks, or commodities you dont wish to invest in for personal or ethical reasons, you don’t really have the choice to withdraw your investment. It is a collective investment that grows or shrinks based on the market’s performance.
Real Estate – Real Estate investing is one of the sure secured methods of attaining long term financial independence. While a hefty investment is usually what people have in mind, utilizing small downpayment loans can help you make a nice profit that can jumpstart your career in real estate. View the Real Estate section to learn more information on real estate investing.
Blogging Adsense – When you think of blogging nowadays, you think of large followers who dedicate a ton of time to their craft. Think again. Running a running a website that costs $48 for the entire year while google puts ads on your page for others to view. The more visits you have, the more money you make off impressions and/or clicks from those ads. Having a solid friend base can also help this endeavor get off the ground as the name of the game is strength in numbers. Please review Adsense 101 Blogging to get started.
Business & Brand Building – Do you have a product/service or enough information that you find to be incredibly valuable? If your service/product solves a problem that you think is in dire need of discovery, then this avenue of income is right for you. This is for all the true entrepreneurs who love sweat equity in hopes of breaking those 7 digit sales figures at the risk of making nothing. We help you learn branding, product acceleration, pricing, customer acquisition and so much more. Build & grow your business from the brightest minds from Columbia, Princeton & Harvard.