Investing for Dummies 101-The Basics of Investing

The investing world can be a big bad world.  When just starting out it can seem like you fit into the investing for dummies category.  There is so much involved in investing that it is hard to know where to start and who to listen to.  From investing into businesses in your hometown to investing in the worlds currencies, a person or entity can invest in almost anything.  There is really no limit to a persons investing.  However, without the proper understanding and knowledge of what an investor is putting their money into, they can loose a lot of money very quickly.  This is why financial education is so important and a major reason the US is in the pickle that we are in today.  ‘Investing for Dummies‘ the book and this article is really about starting that financial education.   There is a secret, when looking at the whole picture, when you understand how the entire system works, that is when investing becomes easy.  We will cover the basics of investing.  Know that this does not even scratch the surface of the investing world.

Businesses become large enough to issue Initial Public Offering (IPO’s).  Meaning that the public can invest in a business speculating their growth

The largest and most liquid market in the world, you can actually invest in another countries currency.  When you invest you are speculating that one currency will increase in value and another country’s currency will decrease in value.

This is investing in rental properties, commercial property, and land.  This is any estate that is actually real.  This also includes tax lien investing.  Investing in liens is paying someone’s taxes and holding a lien against someone’s property.  

Commodities include corn, cotton, oil, natural gas, gold, silver, and copper. Physical metals or any commodity an investor speculates will increase in value.  

Business is somewhat different and somewhat similar to investing in stocks.  You are investing in a business hoping that the business will grow and produce profits however, a lot of times the investor is putting up the money for a business to grow.  This loan is then paid back over a period of time or many times an investor will get a percentage of the company.

It does take years of knowledge to master investing. Even when a person has mastered one category of investing then the next category can also take years. This is why it is very important to work with a trustworthy team as we mention in the next paragraph. Also understanding the economy and how money flows can help you master all areas of investing without truly knowing everything about one or another category of investing. Learning how people and governments handle money in certain economic situations can help investors ‘see the future’. This then helps them position their money in the best place for an amazing return.

One of the best and most supportive strategies you can do to position yourself correctly is to build a team.  Surround yourself with people that are more successful and more qualified in areas that you are not.  Find attorneys that you can trust find bankers, accountants, business people, investors and financial advisors and pick their minds.  Most people are very flattered if you ask them about themselves.  This is usually a huge compliment and it is no different with very successful people.  They are usually very open to share their knowledge and help another.  

‘Investing for Dummies’ is a book and also the title of this article.