What is Investing? Investing Basics For Getting Started
Investing refers to a number of different things. Some people may simply refer to it as investing in stocks and bonds, while others would go on to define it more specifically as stock and bond investing, real estate investing, futures investing, commodity investing, etc. A third type of investor would also consider investing in commodities like gold, silver, oil, etc. The general idea behind all three types of investing is that you are investing in something that has a potential for growth in the future, and the possible appreciation for the current asset may well be far greater than the initial cost.
How can a person begin this venture? Investing can begin with just anything: with money, shares, bonds, or whatever your particular investment needs may be. The key to investing in anything is research – doing the necessary research to ensure you are making sound investments that will, perhaps in time, pay off handsomely in profit. So how does someone get started with investing? For the most part, investing is done through what is called a buy and hold style – putting money into an investment and holding until the point where the investment grows enough to justify more funds being added to the investment.
There are many different ways to invest in order to grow your portfolio. One of the most popular methods of investing is buying and holding stocks and bonds. When you purchase a stock or issue of stock, this is typically done through a broker. Once you have purchased the stock, you wait for it to gain in price (it goes up and down) until it reaches a point at which you decide to sell the stock for a profit. Holding on to a stock will give you the opportunity to buy other stocks that have risen in value and add them to your portfolio.