You have reached the end of this first path, the fundamental, the most important of all.
Having well understood what are the basics of the art of investing is the first step to begin the journey in the right direction. Besides avoiding bad surprises, you will benefit from significant time savings in achieving your objective. Those who begin without basis, in fact, wastes a lot of time in the beginning making the first attempts, and probably losing a lot of money.
Obviously, with a lot of intelligence and wisdom, using only his own experience, an investor could reach the same conclusions and principles buy himself, but it would take a long time and maybe even a lot of money before he get to the same goal. And moreover, if he’s not even wise, he can continue to repeat the same mistakes to infinity.
The art of investing: the salient topics
Let’s retrace the main points covered in this introductory course of the investing art:
- The methods for making money are only 2: people at work, and money at work;
- Pay yourself first, is the first step to capitalize your own work;
- Investing means let money work for you to create other money;
- Compound interest is the third weapon for effective investment;
- Time is your ally, the more you exploit it, the more it works in your favor;
- Knowing yourself is the foundation of any successful strategy;
- Diversifying your portfolio wisely reduces the overall risks;
- Study and deepen, but always be ready to admit the error;
Investing using concrete examples
In the next picture you can see the graphs representing all the instrument we have described in Lesson 3. Each of these instruments is considered according to three factors, calculated on a scale of 100 each: earning potential, inherent risk, and time, and assumes that each instrument is used in the right way, without exaggeration.
– For earning potential we mean the level of return that usually you can get from that kind of investment, putting things go in the right direction.
– For inherent risk we mean the possibility that your plan does not work as expected, and thus it materializes a loss or no gain at all.
– For time we mean the typical time horizon in which that particular instrument produces its effects.
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.
Moreover, such a view can help you in case you are thinking to combine several of these tools in a diversified portfolio, including among them Social Trading the way we are going to show you in the future courses.
We don’t want to suggest you that the best Social Trading in absolute terms. On the contrary, we hope you will become curios and deepen all these instruments, bonds, stocks, mutual funds, Forex, and maybe you will diversify your portfolio by including some or all of these instruments, together with Social Trading.
For sure, now you have the basics to tackle this route in the best way possible.