Over 60 percent of people don't invest because they find it scary and intimidating.
Many of these people are women--women are significantly less likely to invest in the stock market than men. However, research shows that when women do spend on investments, they are better investors than men. .That's why it's vital that the number of women investors increases.
But before diving in headfirst, it's important to know the basics of investing. Keep reading for our beginner's guide to becoming an investor.
1. What is Investing?
Let's start with the basics: what is investing?
In contrast to putting your money aside in a bank account for interest, investing involves risk.
You can never be sure that you'll receive any returns. You could make a lot of money. Or you could lose everything you invest.
There are many different kinds of investments from stocks, bonds, and funds to the less obvious examples of wine, antiques, and property.
If you buy in something because you believe it will increase in value over time, it's an investment!
2. What's the Stock Market?
But to make things simple, let's concentrate on the stock market.
The stock market is where shares of companies are traded to make a profit. Simply put, a share of stock a slice of the company. Every share is displayed on the exchange, such as the New York Stock Exchange.
Companies use the stock market to grow, while the investor is looking for opportunities to make money off the back of the financial growth of a company.
By investing in a company's shares, you become a shareholder. After you buy a share, you can sell it to anyone who wishes to buy it.
The price of the share is influenced by different factors from the health of the national economy to the financial profits made by the company last quarter. Due to various factors, the price of the shares will fall and rise over time.
3. How to Become an Investor
Now that you know the basics, it's time to find out how to become an investor.
You can buy shares (or funds and bonds) in a variety of ways. But most investors operate on a platform.
There are two main stages to becoming an investor:
- Choose a platform
- Select your investments
There are several different platforms to look into before you select into which investments you want to put your money.
Think of it as going to a supermarket to buy some bread. The supermarket is the platform. You can choose from several different stores. The bread is the investments. Once you're at the supermarket, you can select from several different brands and bread types.
Becoming an Investor
Now you know the basics of becoming an investor, it's time to get started with your investment strategy.
But diving into the world of investing on your own can be scary. That's why we're there to help you.
Do you want to find out more about Everyday Angel Investors? Check out our website for more information on investing.