It’s not that difficult to make money if you already have a lot of it. But it’s much harder to start from the ground up. Still, people do it every day. It’s like the old game “Bigger/Better” that you used to play in middle school. Players divide up into teams. Each team starts with a quarter, then starts knocking on doors. They ask the people that answer the door to trade something in their house for the quarter, just as long as the item is worth more than the quarter. The last time I played this in high school, my team ended up with a working golf cart in about two hours of play.
This illustrates a couple of things. One, you don’t have to start with much in order to end up with a lot. And two, it helps to be having fun when you get into the world of investment. Here’s how regular people like us can accomplish both of these things when trying to become successful investors.
Starting from Scratch
Successful investors have to start with a good foundation. This means canceling debt and starting to build savings. Because debt tends to accrue at anywhere from 11% to 25% (or more), you’ll be losing money a lot faster than you can make it, as long as your debt hangs around. So take a few months or a year, however long it takes, and get rid of your debt. Your ability to invest well will increase exponentially, the lower your credit balance gets.
From here, you just have to learn the fundamentals of investment. Fortunately, these aren’t much more complicated than the rules of Bigger/Better. Just don’t lose money. This means you’ll have to be careful with your trades, always watching for advantages. But if you pull it off successfully, you’ll be able to do really well.
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Having Fun With Investment
Enjoying yourself is the only way to stick to investment for the long term. Forex Brokers help me do this every single day, even as I manage more long-term (and boring) investments. Forex is a kind of day trading. It links up pairs of currencies, and the investor guesses which one will gain or lose value relative to the other one, within a specific timeframe. Web brokers like CMC markets make the process fast, easy, and safe. You can use free tutorials while you learn how it works. The fast-paced aspect of Forex trading reminds me of my days playing bigger/better, when you could work your way up from a minimal investment to something really great, within minutes and hours.
The speed of Forex trading was another big selling point for me. I’m able to make winning trades during a coffee break, or in the morning while I’m eating breakfast. Because it’s possible to gain or lose money fast this way, I keep my trades of a reasonable size. I also make sure to manage longer-term investments with more manageable risk. But if I limit myself to these conservative investment strategies, I lose my interest pretty quickly. Forex investment has been essential to keeping a sense of fun in my investment life, and it has paid off significantly for me.
A first investment that requires minimal capital, while still being fun, is essential for new investors. Forex performs for me on both counts, and I can recommend it for you as well.
I am at the stage of clearing off my debt and saving money prior to starting investing. Forex is really a good one, but I have to research more on this Adam. However, I have learned a lot from your post.