Why should I invest?
Investing money is a proven way of increasing your net wealth, the problem being it is highly unpredictable and thwart with potential risks. Investing is usually an aim for people in the know, those who have vast experience with a company or business that they know is ‘onto a winner’, though it is accesible to everyone. My advice would always be, only invest what you can afford to lose. Much the same as gambling, finding yourself in a situation where you do not have enough capital to keep your necesities coming in is a very bad place to be and something that you want to avoid.
Investing money in new or thriving companies is a great way of growing your capital, though usually for the longer game plan often you can get quick wins by moving money from company to company during a quick growth period. This is often where the professional brokers operate, making a fast buck and selling when the time is right, this is a large part of being good at investing, knowing when to sell. Making a 100% return rather than risking a 110% return is the way to think about it!
Where should I invest my savings?
This is largely dependant on your knowledge and experience, generally people tend to stick to what they know, this is usually the way to make the wins, staying within your comfort zone and investing in something you have knowledge of already. Investing in new and young business that may be on the verge of a takeover or bringing on a huge client will increase the value of your shares greatly within days.
Our advice would be to stick to your comfort zone, stick to markets that you already know something about will give you the edge.
Cashing in on investments
Cashing in on your investments is perhaps the mos important part, having shares worth 1000 times what you paid for them is all well and good but that money is not yours until you can sell the shares, get out when you can and maximise the guaranteed return rather than risking a slightly higher return.
It is as simple as maths and common sense, if you bought shares for £1 and a year later they are worth £1000 then sell them rather than risking it all to get £1100 in another years time, what is the point in gambling £1000 for a 10% return when you allready have 1000 times what you paid for it?!
