Do you want to start investing but maybe you are unsure about whether to just jump in feet-first or whether to buy some books or training courses or go to some seminars first? In which case this article is for you. It's one of a series of investing articles. This one looks at the different learning preferences that we all have and it answers the question: "What is the best way to learn to invest?"
Now of course you could just go out and "do it yourself". You could buy an investment property or buy some shares and just learn how to invest as you go along. The disadvantage with that is that they calculate that it takes about ten thousand hours to become an expert in something. And, as it is your money, wouldn't you rather have an "expert" looking after it? By learning from other people you can save a considerable number of those 10,000 hours.
By learning from others you will also be able to minimise your errors. And of course with investing what we are talking about with "errors" is losing money so you should be able to stop a considerable number of losses and save a considerable amount of money by learning from the experts. A good friend of mine did teach himself how to become an investor. He says it cost him about $100,000 in errors along the way. He's a good investor now but it was a very expensive process. So, find someone to learn from!
The other thing you will achieve by listening to other people is you will learn some really good ideas. When you learn different ideas from people who are looking at things in a different way to you, they will help you to come up with your own ideas about new or improved strategies that might really work for you with your investing. After all, the compound effect of a small financial improvement in your results each month can make a huge difference to your bank account over time.
In terms of learning, there are three different "preferences" that we each have when learning things: visual, kinaesthetic, or auditory. We all have a little of the three but we each have a preference in one particular area.
So, for instance if you have a visual preference (which just over a third of people have) then you will prefer to learn through pictures and images. People with a visual preference will often say things like they want to know how something "looks". Sounds and feelings are not so important to visual learners. So somebody who is a strong visual learner won't be easily distracted by sound.
People who have a preference towards kinaesthetic learning prefer to learn by doing and touching and feeling. So they will learn by doing things and by "working things through" and they will want to know if things "feel" right. And again, just over a third of people have that preference.
The third preference is auditory which applies to a smaller group of people. Less than a third of people are auditory learners. They learn by listening to things and they memorise things by going through the steps and sequences. They will want to hear about how things "are".
When you understand your own particular preference, then you can look for the learning methods will work better for you. So for instance, videos and DVDs are great for people who have a visual learning preference. Workshops work well for people with a kinaesthetic learning preference. And written (or spoken) instruction manuals work well for people with an auditory preference.
Now of course good training will usually include a mixture of visual, kinaesthetic and auditory training. Take a seminar for example. You might watch the presenter and do the exercises he/she sets and listen to the instructions that he/she puts up. In this way, the training can work for all of us ... and it also stops us becoming bored with one method of delivery!
When learning, the environment is also important. Again we all have different preferences. So for instance, a kinaesthetic learner would be more focused on temperature whereas other people would not mind so much what the temperature was. So make sure that the environment is right for you. For some people learning at home is really great because they can make the environment pretty much what they want. You can lock yourself away in a room and have everything exactly the way you want it to be. So homestudy training courses that combine DVDs and books are often a great way of learning.
And then there is who to learn from? After all, there are hundreds of people out there offering training and there are thousands of investing books. In my experience, the best people to learn from are the ones who actually have the results that you want to achieve. So start off by finding out what that person has actually achieved. And only listen to the people that have achieved things that you also want to achieve.
The third component in effective learning is through a commitment to continuing improvement. By committing to continuing improvement you will become a better and better investor, even if all you can commit to is an hour a week. That is a more effective way of learning than, for instance, taking a week out to become an expert in XYZ strategy. Over time you will forget much of what you learn that way but with continual improvement you will find yourself applying the things that you learn as you learn them and they will become good habits.
So, go out and investigate the experts, find the ones those have already achieved the results that you want to achieve and then start applying what you are learning. The sooner you start learning (and applying what you have learnt), the sooner you'll achieve the results you want from your investing.
By the way, you might be able to spot the learning preference that I have from the way that I write ... care to take a guess?
About the author:
Investor and wealth educator Ian Thomson specialises in helping people learn how to become financially free, quickly and easily, through the strategic use of advanced investment strategies.
For more wealth-building ideas and for a free, 3-hour, wealth-education video visit: http://www.InvestmentSuccessNow.com
You may freely distribute this article in its entirety providing the copyright notice remains intact.
Contact me: Ian Thomson
Copyright 2009: All Rights Reserved
Article Source: http://EzineArticles.com/?expert=Ian_Thomson
пʼятниця, 23 жовтня 2009 р.
All About Hedge Funds For Beginners
Many people within the business industry would have thought about making better use of their money and have come up with ideas of the future of their money. A good businessman would spend much of their time researching and studying the financial market, as well as work on developing their business management skills. A relatively new businessman will come across terminology and phrases that are both unfamiliar and confusing, making it vital that they take some time out researching.
An important investment move that business people will hear of is hedge funds. This is an investment fund for a limited range of investors made eligible by a range of regulators who undertake a wider range of investment and trading ventures. A hedge fund has its own investment strategy which helps to identify the type of investments and methods used for the investment. This kind of investment uses shares, commodities and debt, and keeps some of the risks inherent in these kinds of investment at bay through short selling and derivatives.
The reason why hedge funds are only offered to a limited range of professionals and investors is because of their previous investing portfolio and income. The opportunity for hedge fund investment provides them with exemptions in regulations that govern short selling, leverage, derivatives, fee structures and liquidity of interests on the funds. Hedge funds can see many of these investors return a net asset value into billions of pounds. This investment is certainly the top most sought after investment opportunity, dominating most specialty market like trading within derivatives and debt.
The first recorded hedge fund investment was created in 1949 by Alfred W Jones, whose background lay in financial journalism. His belief lay in the theory that with individual assets where there is a price movement is similar component due to the market overall and due to the performance of that asset. He put his theory to the test and expanded on his portfolio buying assets that would accrue stronger prices and short selling assets that would have weaker prices. The end result was that the price movements would be cancelled out in that the loss on shares that have been short sold would be cancelled out by the extra gains made on the assets that had stronger prices.
Hedge funding was coined from the idea of hedging the risks involved in this kind of investment and allows for the investment manager the freedom to decide upon the investments on a purely commercial basis.
Gino Hitshopi is an expert on hedge funds having researched this kind of investment when studying financial journalism. For more information visit http://www.preqin.com/
Article Source: http://EzineArticles.com/?expert=Gino_Hitshopi
An important investment move that business people will hear of is hedge funds. This is an investment fund for a limited range of investors made eligible by a range of regulators who undertake a wider range of investment and trading ventures. A hedge fund has its own investment strategy which helps to identify the type of investments and methods used for the investment. This kind of investment uses shares, commodities and debt, and keeps some of the risks inherent in these kinds of investment at bay through short selling and derivatives.
The reason why hedge funds are only offered to a limited range of professionals and investors is because of their previous investing portfolio and income. The opportunity for hedge fund investment provides them with exemptions in regulations that govern short selling, leverage, derivatives, fee structures and liquidity of interests on the funds. Hedge funds can see many of these investors return a net asset value into billions of pounds. This investment is certainly the top most sought after investment opportunity, dominating most specialty market like trading within derivatives and debt.
The first recorded hedge fund investment was created in 1949 by Alfred W Jones, whose background lay in financial journalism. His belief lay in the theory that with individual assets where there is a price movement is similar component due to the market overall and due to the performance of that asset. He put his theory to the test and expanded on his portfolio buying assets that would accrue stronger prices and short selling assets that would have weaker prices. The end result was that the price movements would be cancelled out in that the loss on shares that have been short sold would be cancelled out by the extra gains made on the assets that had stronger prices.
Hedge funding was coined from the idea of hedging the risks involved in this kind of investment and allows for the investment manager the freedom to decide upon the investments on a purely commercial basis.
Gino Hitshopi is an expert on hedge funds having researched this kind of investment when studying financial journalism. For more information visit http://www.preqin.com/
Article Source: http://EzineArticles.com/?expert=Gino_Hitshopi
How to invest money in gold
There are a number of ways to invest in gold and make money when its price rises. Some are more suitable to the average investor than others. You don't need to own the stuff physically to make money in gold. If you are interested in investing in gold, here are some investment options for you.
The least attractive of the investment options, in my opinion, is to buy gold in a physical form. For example, coins. You pay a premium when you buy gold in this way, plus you get clipped when you sell. If you want to liquidate quickly and easily and get what your investment is really worth this is not your best alternative.
If you want to speculate with high financial leverage futures contracts are an option. This is not so much investing in gold; it's speculation. If prices move in your direction you can make a lot of money quickly. If prices go against you loses can be quick and big as well.
Gold stocks are an attractive way for average investors to invest in gold. You can buy and sell shares quickly and easily for as little as $10 a trade or less. When the price of this precious metal goes up, gold stocks follow suit. Why? Because profits for the mining companies soar. In fact, gold stocks often gain considerably more on a percentage basis than the increase in the price of the commodity itself.
If you don't want to pick your own gold stocks you can invest in a portfolio of them two different popular ways. The first way is by buying and selling ETFs (exchange traded funds). They trade just like any other stock.
For most inexperienced investors I suggest the other option: gold funds (mutual funds) that invest in mining stocks. When you invest money in a fund you own a small part of a large portfolio of securities, in this case precious metals stocks. You can invest money or liquidate shares on any business day.
Gold funds are a sensible way for most people to invest money to make money in gold. I do not recommend betting the farm that the price of this precious metal will go up; but having a small portion of your investment assets in gold funds makes sense for most investors.
Historically, what happens in times of financial and economic turmoil? Stocks in general take a beating and precious metals prices go up. What's the most popular precious metal in the world? You know the answer to that question.
As a final note, most investors should invest money in general diversified stock funds, bond funds and money market funds as well. If you decide to cut your investment in any of your funds you can simply switch money to another fund in the same family or investment company. By investing your money in mutual funds you can keep your investment assets under one roof and have the flexibility to make changes when you see fit.
A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.
Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.
Article Source: http://EzineArticles.com/?expert=James_Leitz
The least attractive of the investment options, in my opinion, is to buy gold in a physical form. For example, coins. You pay a premium when you buy gold in this way, plus you get clipped when you sell. If you want to liquidate quickly and easily and get what your investment is really worth this is not your best alternative.
If you want to speculate with high financial leverage futures contracts are an option. This is not so much investing in gold; it's speculation. If prices move in your direction you can make a lot of money quickly. If prices go against you loses can be quick and big as well.
Gold stocks are an attractive way for average investors to invest in gold. You can buy and sell shares quickly and easily for as little as $10 a trade or less. When the price of this precious metal goes up, gold stocks follow suit. Why? Because profits for the mining companies soar. In fact, gold stocks often gain considerably more on a percentage basis than the increase in the price of the commodity itself.
If you don't want to pick your own gold stocks you can invest in a portfolio of them two different popular ways. The first way is by buying and selling ETFs (exchange traded funds). They trade just like any other stock.
For most inexperienced investors I suggest the other option: gold funds (mutual funds) that invest in mining stocks. When you invest money in a fund you own a small part of a large portfolio of securities, in this case precious metals stocks. You can invest money or liquidate shares on any business day.
Gold funds are a sensible way for most people to invest money to make money in gold. I do not recommend betting the farm that the price of this precious metal will go up; but having a small portion of your investment assets in gold funds makes sense for most investors.
Historically, what happens in times of financial and economic turmoil? Stocks in general take a beating and precious metals prices go up. What's the most popular precious metal in the world? You know the answer to that question.
As a final note, most investors should invest money in general diversified stock funds, bond funds and money market funds as well. If you decide to cut your investment in any of your funds you can simply switch money to another fund in the same family or investment company. By investing your money in mutual funds you can keep your investment assets under one roof and have the flexibility to make changes when you see fit.
A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.
Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.
Article Source: http://EzineArticles.com/?expert=James_Leitz
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