Wednesday, 28 December 2011

What Is Investing All About?

By Donald Scott


Investment is an expansive word that encompasses a wide variety of things, but on tracing the word back to its roots, it is funny that this word finds its origins in the Latin word 'vestis', meaning garment. Digging in a little deeper, we find that the word was used in reference to putting things (money or other claims to resources) into others' pockets, which though simple, is the most effective way of defining this word. By investing our money, or resources, or time for that matter, we are making a definitive contribution to an activity or the acquisition of an asset that is capable of producing a recurring profit. But the flip side to this two sided coin is the use of the misnomer profit, which is not necessarily what the investor ends up with. Investment in financial circles, is of two types -

The first is a Real investment, which deals the acquisition of tangible property, such as an automobile or a house. The other type of investment is the acquisition of Financial assets, such as money in a bank, or stock market shares, that one can trade or sell at will.

When it comes to the investor's point of view, the thing you really need to pay attention to is the 'recovery' of your investment. This makes the difference between making money, or going broke.

So how do you find balance in the investment world? What's the secret between success and failure? Well, practice makes perfect. The trick is to be able to invest in assets that have the best chance of success. We say "practice makes perfect" because sometimes things don't always go our way to do circumstances beyond out control. Developing your skills to analyze the situation at hand and make all the proper movements is what separates the winners from the losers.

You can poke around the internet and see testimonies about investments that can guarantee desirable and near immediate results. Like I said before, the key to investing is knowing the right moves to make, and patience and persistence are a huge part of that. You can't expect your investments to give you immediate results.

As I was writing this article and doing some poking around of my own on the internet, my research brought me to several sites that gave tips on how to increase your success rate in investing. Isn't it odd? With all this "great" information available, wouldn't you expect to be seeing more headlines in the newspaper about small town investors becoming the next Donald Trump? The truth is you'll never become a successful investor by simply reading ways to become one, the best way is by getting out there and developing your intuitive feel to the workings of investment. Today, technology is so readily available and it's growing in leaps and bounds. This only makes it easier to keep track and manage your investments. The question is, will you use it to keep up with your competition? Or use it to blow them away?




About the Author:



No comments:

Post a Comment