Wide diversification is only required when investors do not understand what they are doing”. Investing Course: Summary and Conclusions

That’s why taking the time to learn how to invest, and leave your money the right time to bear its fruit, are certainly two of the most important factors for the success in this discipline. As we have already said, this is absolutely not true. And also, investing a sum each month, even if small, can lead to great advantages over those who invest all at once. Let’s make an example to better explain.

Investing money: the two main roads you can use

Instead of choosing your own individual shares, you can put your money into a mutual fund. This is effectively a group of shares, though managers can invest in other types of assets like bonds. Let’s start by giving a definition of what compound interest is. Compound interest is the interest that, instead of being withdrawn, it’s added to the initial capital that generated it. Lastly, fund platforms serve up opportunities including investing in various indices along with Exchange Traded Funds (ETF’s) and Mutual Funds too. One should take into account factors such as competing firms present within the industry sector along with any emerging trends which may affect potential risks of invested funds. Can I hold my nerve and avoid selling if my investments drop? (you should consider waiting for markets to rise again to avoid crystallising losses)

You are what you read and listen to. Don’t pollute your mind with bad investing strategies and philosophies. The quality of what you read and listen to is far more important than the quantity. Find out how to evaluate the quality of what you read and hear. Choose an investment account – From general investment accounts (GIAs) to ISAs, there is a range of different accounts available. Search for the most appropriate account for you based on your investing needs. Investing for dummies can feel overwhelming at first. We all know we need to, but don’t know how too. Thankfully, it’s easier to invest than you think. Maybe you want to invest for retirement? Or, maybe you’ve started making extra money and want to invest it? However, no one should buy shares or invest in property without first obtaining a solid level of knowledge about the risks and rewards of these investments. This could be sought through;

When we think about the different investment instruments and the investment practice in general, one of the factor that very often discourages most people is undoubtedly time. Nowadays we are so used to the concept of “all at once” that we have lost the precious value of time. The most famous bonds are the governments bonds, like the USA Bond, the German Bund, or the Italian Bot. Owning shares in the company allows you to share in the profits of the company but does not allow you to make any day-to-day decisions based on the how the company is operated. A private company, the government, or a local municipality may need to raise money and they can do so by issuing a bond. Now, let’s say you get an average monthly return of 5%. Leaving them on the account, at some point you’ll be able to increase the weight of the operations that will be replicated, because your capital, increased due to interest, will allow a greater “firepower”.

To conclude, there is only a risk when it comes to building an investment portfolio and diversifying, and it’s to exaggerate. As with all things, you need the right balance. Warren Buffet said that The market is based on people and their decisions, not on mathematical laws, and, as we know, people very often tend to take irrational decisions. Fear and greed are the two emotions that drive any market.We will see in detail the potential of this new form of investment in the dedicated course. But for now, do not rush, and first terminates this course, because here you will find the most important concepts for the success in any investment, including, of course, with Social Trading. The Time Factor in an investment Look at how Social Trading seems to be the most interesting of all the options. Clearly, these graphs are our own personal interpretation, but we are sure that if you will deepen a bit these topics, you will find that these images are very explanatory.