To improve your financial health and grow your money, there are many investment options that you can try. As a beginner, it’s best to focus on simple low-risk strategies. Once you’ve got into the swing of things, you can move onto some more advanced investment strategies. From trading stocks to high-interest accounts, let’s consider a few starting points.
Certificate Of Deposit Or Even Just A Basic Savings Account
A Certificate Of Deposit is a product offered by banks and credit unions. You can get an excellent interest rate if you leave a lump sum in the account, for a designated time frame. A Certificate Of Deposit is a low-risk investment, one of the reasons why it’s so perfect for beginners. There are many advantages to a CD, including:
- You’ll get higher returns than with savings deposits.
- You’ll benefit from predictable returns, within a set time frame.
- There are plenty of different CD accounts to choose from.
While this is absolutely the safest and most secure investment option, it is hardly a long term strategy because interest rates are so low that you might not even exceed inflation. Simply put, your money will be safe and secure but it isn't working for you.
Day Trading
Day trading means buying shares online and selling these shares that same day. It’s one of the best ways for beginners to get started in trading. The idea is that you can earn money when these shares fluctuate in price. In highly liquid currencies or stocks, you’ll usually see small movements in price. You can approach day-trading using many different strategies. A few examples include momentum trading, swing trading, or neutral market trading. Most shares are cheap to purchase, which is why day trading is great for newbies.
Once you’ve learnt the basics of trading, there are so many options available to you. It’s a good idea to use automated trading software for algorithmic trading. Using the right platforms you can use multiple strategies, within one portfolio.
Robo Advisors
Robo Advisors are online platforms that provide opportunities to invest, along with financial planning. Robo Advisors work using algorithms, instead of any human involvement. The platform collects your financial data, to assess your goals and situation. There are many benefits to using a robo advisor including security and portfolio management. Robo Advisors involve low start-up costs and provide helpful customer service. You’ll find that RAs don’t have strict monetary requirements, meaning you can start investing, even if you don’t have much money.
Long Terms Strategic Investing
When you’re getting started with investing it’s a good idea to hire a financial advisor. Investing with a professional advisor will give you peace of mind, supporting you to make good investments. Financial advisors can offer expert advice, and track how your investments are progressing. A financial advisor can also help you with general planning, to improve your financial health. With expert help, you’ll make the right investments for you. When choosing a company, be sure to check out the reviews and testimonials.
There are plenty more great investment options for beginners. Check out options such as balanced funds, peer-to-peer lending, or a 401(K) account. When you’re starting out it’s best to take your time and conduct plenty of research.
