New Investors - Strategies and Pitfalls
Investments can also sour, with recent notable examples being the dot.com bubble and the dramatic drop in real estate prices after the sub-prime mortgage crisis.
Keeping that possibility in mind, a new investor would usually benefit from watching for interesting developing technologies, growing industries and new inventions as an excellent starting point.
The Stock Market - The Traditional Way People InvestHow does a new investor take advantage of knowledge of a new technology or the next big thing that will sell like hot cakes? People have traditionally invested in the stock market, primarily because investments in stocks have a long history of outperforming many other types of investments over a period of time.
A large segment of the population now uses stock market investments to maximize the return on their money and to protect their assets from inflation.
Commodities and currencies can make excellent speculative trading vehicles. Nevertheless, buying and holding a well selected portfolio of stocks has managed to perform better than most other investments over time.
Stocks and DiversificationOne of the main pitfalls that a new investor should avoid consists of
By Jay Hawk