How many times have you heard the word ‘Diversify’? We listen to the very smart people on Wall Street that tell us to not to invest in any one thing only. What you don’t hear a lot of, is how to grow your finances by investing. Growing finances for those that come from meager beginnings starts the talk of life changing events. So, then how do you want to invest to grow your account? Long Term investing or Short Term Investing.
Long Term investing speaks to people who have portfolios. When we place our money into IRAs or Retirement Savings Accounts that bundle funds from the Stock Market and leave them there to grow, that is Long Term Investing. In many cases, companies will invest in Stock Market indices to help provide a little bit of a buffer. Companies provide these funds that already have some of the best companies invested. For example, you get hired on and given a 401K, that 401K is made up of the Apple, IBM, Amazon, etc. You know these companies and they are doing very well. However, on the stock market they usually only go up by 15-20% a year at best. They have a lot of companies invested in them so it would take a huge amount of volume to move the stock.
Short Term investing is more day trading. A statistic out there says 90% of all day traders lose money. However, there are also a lot of successful day traders giving lessons! This is definitely more risky and more hands on than long term investing. You will start a brokerage account and put money in only for the time that the stock goes up and then take your money back out again. Attempting to predict stocks or even putting your money where the odds are better that your money will grow is risky. However, the rates of return are high. The day traders giving lessons quote themselves a rat of return 500% in a year. You could also lose 500% in one year.
In growing accounts, know your options. There are infinite number of stocks, bonds, ETFs on the Stock Market, but only you can know what is better for you. Are you the type of person that likes to put the money away and forget it? Or can you see yourself researching stocks and actively working your money? No matter what, you will be investing for a better future.
Growing Your Account – Finance Commentary
How many times have you heard the word ‘Diversify’? We listen to the very smart people on Wall Street that tell us to not to invest in any one thing only. What you don’t hear a lot of, is how to grow your finances by investing. Growing finances for those that come from meager beginnings starts the talk of life changing events. So, then how do you want to invest to grow your account? Long Term investing or Short Term Investing.
Long Term investing speaks to people who have portfolios. When we place our money into IRAs or Retirement Savings Accounts that bundle funds from the Stock Market and leave them there to grow, that is Long Term Investing. In many cases, companies will invest in Stock Market indices to help provide a little bit of a buffer. Companies provide these funds that already have some of the best companies invested. For example, you get hired on and given a 401K, that 401K is made up of the Apple, IBM, Amazon, etc. You know these companies and they are doing very well. However, on the stock market they usually only go up by 15-20% a year at best. They have a lot of companies invested in them so it would take a huge amount of volume to move the stock.
Short Term investing is more day trading. A statistic out there says 90% of all day traders lose money. However, there are also a lot of successful day traders giving lessons! This is definitely more risky and more hands on than long term investing. You will start a brokerage account and put money in only for the time that the stock goes up and then take your money back out again. Attempting to predict stocks or even putting your money where the odds are better that your money will grow is risky. However, the rates of return are high. The day traders giving lessons quote themselves a rat of return 500% in a year. You could also lose 500% in one year.
In growing accounts, know your options. There are infinite number of stocks, bonds, ETFs on the Stock Market, but only you can know what is better for you. Are you the type of person that likes to put the money away and forget it? Or can you see yourself researching stocks and actively working your money? No matter what, you will be investing for a better future.
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