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How to invest my money profitably
If you wonder how to invest money , and also profitably, This is your guide! Everything you need to know about investment, profitability and strategies.
That means so much not lose as win more.
We will see in this article guidelines that can help you get it. Not only that, but we will study a number of principles and concepts that will help your financial training.
We started with somewhat basic and obvious issues, but we must not ignore.
previous considerations when investing money
Study what you can win and you can lose
Any investment greater or lesser extent, is risky, so you should make estimates or calculations of probabilities of what you can win or lose.
If if you win you get it is little, but instead if you lose losses can be substantial, obviously not something that interests you.
An example: when stock investing some people sell immediately when they get some profit, however little it is, and instead they lose wait and wait until the stock recovers. The latter, of course, does not have to happen, and losses can be substantial.
Lower yields products with low inflation
There are financial products whose returns, although positive, are minimal and do not exceed the inflation . Many people feel calm thinking, at least, do not have the moneystopped, but in practice it is quite absurd comfort. The difference between investing in the product and not doing so is minimal.
An example of this at the present time are the time deposits of banks.
People trust only solvent
If you are going to entrust your investments to third parties ideally know them, investigate his career and, above all, the numbers of operations. Flee boiler rooms and high returns in strange circumstances.
Fórmate investment
Although ideal, as elsewhere, it is that you formes, you gain a solid financial culture , and gradually you learn concepts, strategies and key and you become your own counselor. So you will not have to depend on anyone. You will be your own master, a real expert .
Does it affect personality when investing money?
Evidently. Like everything else, the personality influences . You can have a proactive, balanced, risky mood ... There are many types of characters as people in the world.
This when investing your money determines you have aversion to risk, ie if you tolerate better or worse, and on that basis can be one of the following types of investors:
conservative investor
It is avoiding any possible loss. You get low but safe returns. Invests primarily in fixed income and equity of large companies and a strong track record.
moderate investor
Is assuming a greater risk than the conservative but up to a certain limit. We could say that supports a calculated risk. Your investment is usually fixed and variable equal parts.
aggressive investor
It is known as risky. It has for example (although sometimes only believed to have) great knowledge on the equity market. Most of its investments are therefore in this type of product. He likes to speculate and seeks big payoffs in the short term .
Aside from the typical equity bag also invests in foreign exchange, CFD, sy startups .
But in general, how many types of investors are there?
There are many types of investors and many ways to classify them .
Not to extend, we will meet two criteria:
Depending on the investor subject
That is, depending on who invests.
Particular
It is the most common course, which will surely find (or you decide to find when you read this post 
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It is the investor natural or legal person who makes small capital contributions .
Their patterns of investment are difficult to predict because it depends on the personality, as seen above.
Institutional
These are private entities formed by individuals or companies associated for that purpose: to invest .
Handle large amounts of money , they diversify their investments and seek good returns at moderate risk.
Depending on the stage of the project
We can also classify investors according to the stage where the project you will be investing your money . In this sense there would be four types of investors.
Las 3F (Familiy, Friends & Fools)
Literally, "family, friends and fools (or crazy)".
It is the nearest source of funding. They are those who bet on your project in the beginning, not because they believe you will succeed (basically give them a little sorry), but affinity and affection .
You must be careful here because there are many personal implications. It is advisable to ask a lot of money and it 's good to treat these "investors" rather touch so that the relationship does not deteriorate.
Business Angels
They are fashionable a while now . They are people who invest their assets in generally innovative companies startups . They are often moved by his passion. If you believe in a project, they bet on it though is risky.
These investors like to be involved in the development of the company and, if you can, bring more than money : knowledge, experience, contacts ... can intervene both in early stages (seed phase) and posterior (financing rounds).
venture capital
Intervenes when the company is already established and needs to continue with a major expansion phase, that is, requiring large amounts of capital.
Invest in companies with high growth potential in exchange for participation in them, usually through actions, although there are some who combine participation loan repayment.
There are venture capital funds involved in the seed phase, but typically do so in subsequent periods. In any case, what is necessary is that the company has great growth potential and need significant amounts of funding.
And seen and the types of investors that there is (or the type of investor you can be), let's delve into the matter, for example talking about ...
How much capital to invest?
A very typical mistake of novice investor is to invest "what you have left" without thinking if they will need in the medium term.
Clearly, if you left it is because I do not need, but that is "now". Can you need it in 6, 12 or 18 months?
If you invest a fixed term to 5 years and within a year need the money, what do you do? Do I take it out and be penalized for it? In addition to the wonder that you have to be paying ... .
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I determined to invest capital based on the following parameters:
- On the one hand, what we currently have available.
- On the other, what you will receive periodically. For example, if each month you receive 500 € rent a property, maybe you can spend 100 or 200 € to investment.
- On the other hand, you would need in the medium or long term. Will you have to change the car, the girl will go to college, you need to change to a larger house ...?
And a tip for sure and you have given many is the desirability of a safety cushion for contingencies.
Ways to invest money
When asked how to invest my money , there are three major strategies that explain step.
There are three ways to make money with money , ie three types or ways to get returns.
passive or residual income
The first strategy is to get regular and recurring returns ( as well as automated). It is what is called passive or residual income, and what you need for a good economic independence and to have freedom, both personal and financial .
Is to invest your money in certain sites or products , you go providing small amounts usually in return for that investment.
Examples: When you invest in the stock market to receive dividends from the shares when you buy treasury bills or notes when you participate in platforms crowdfunding lending to individuals or companies, etc.
Capital Gains
This course is to acquire something (an action, a property, a well ...) to resell and get a capital gain, ie obtain a greater amount than you paid at startup.
It is also called by some speculation or, more vulgar language, stick the pitch .
It is a strategy that is not that it is neither good nor evil, it's just different from the previous one.
Now, do not play dumb. If you buy 50, sell for 70 in win result 20 (broadly, we must remove taxes and others), and 70 received back to buy 70 and sell for 90, winning another 20, you're not winning anything, you're just moving the money, because the last 20 cattle are the same 20 won at first, which you increase risk (of not being able to sell more), without necessarily earn more.
A good investor would drop the first 20 cattle and invest in something else, or would keep, and would do the same initial operation 50. Stay with this figure because it is quite important.
continuous reinvestment to take advantage of compound interest
This assumption can be the smartest, yet quiet to wear.
If you want to know what is compound interest, I will refer here .
The strategy is to invest an initial capital of something (fund, financial product ...) and to accumulate the returns earned in the same place, so that by the former capital will produce new (and old) returns, which will become to unite the former capital, and so on.
If this're adding extra periodic amounts you perceive the other concept (X per month or per year), profits multiply even more.
In this case what you do is deposit money you do not need on a site without having to bother much as everything is practically automatic. Give the necessary orders and reinvests the money with interest.
Where to invest your money
Finally, if you want to know concretely tools you can use to invest your money , ie if you want to know exactly the facilities you have at your disposal, you refer to my article Where to invest money .
Broadly speaking we talked about:
- Estate
- Markets
- Financial products
- Startups
- Crowlending and analogues
And I can not conclude whether to refer to what some @ s can be thinking: I do not have any money to invest , so this article is not for me.
Well, that just tells us that if you do not have economic availability should start to make money somehow, and the best way to achieve this , without any cost or investment , businesses are online. Put up your talent , your knowledge , creates information products and offers. You begin to get money easily.
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