The right investment - Getting started
Investment - it's a word that covers a multitude of sins.
Whether its investing in stocks and shares, property or even gold, the principles of investment are more or less the same.
There are some very basic questions you should ask yourself that will help you decide what sort of investor you are and what you actually want from your particular investment.
Are you a speculator, or simply a person who wants to augment their savings by share trading? Risk is key.
Ask yourself honestly whether you should be trading if you are an inveterate gambler?
Equally, is the stock market the right environment if you go weak at the knees just putting a fiver on the Grand National?
You must also consider whether as a first time investor you can afford to lose a good proportion of your cash on a series of bum deals.
And saying that is the stock market the best place to start?
One form of investment you might consider is pooled funds that helps spread the risk.
Your cash is also looked after by skilled investment professionals with years of experience investing in the stock market.
If you do decide to go it alone, then we have given some gentle investment pointers about simple things such as charges and reinvesting dividends.
In this chapter we provide you with:
- Some simple investment rules
- Alternative investment
- Helpful links