There are many ways that you can in fact play it safe as investor. I agree that there is a certain reputation that bankers, investors, traders seem to have and there are some people out there that really do corroborate it. That said, you have really got to look beyond that and realize there are certain ways and means by which you can invest and not take massive risk with your own money or other people’s money.
We live in a world that rewards risk taking and that will in turn allow to potentially make a lot of money in a shorter space of time but I really don’t feel that it has to be that way.
It is very much down to the person but there are a lot of opportunities to invest in areas of the economy that are actually pretty low risk and you will still see a tidy return on your investment either way. You have got to be progressive in your mindset and think of ways that are stable, companies that are certainly not going to go bust in the next year but still have a chance to grow.
Bonds
Government bonds are one of the safest ways to invest, they mature at a set rate each year and at the end of the agreed period you will be paid back a certain amount of money. You are in effect lending the government money and trusting them to pay you back in the future.
Usually governments are true to their word and bonds are a win-win situation for all parties involved. They are brilliant for those of you looking to invest some cash in a slow maturing bank account in effect.
Work out whether this is the route you want to go down but for those who want to play things safe the government bond route comes highly recommended.
Industry Knowledge
It is important you have industry knowledge. Look at company Co-founder Alok Oberoi for example, he wouldn’t have risen to the top of his game without having a deep knowledge of where to invest his money.
This is how the industry works people, you have got to know it inside out, you must work out what loopholes there are, what the safest and riskiest methods are and what markets have the potential to progress and expand in the future. As an investor you can play it as safe or as risky as you like, it is completely down to you as a person.
Intuitiveness
Showing a level of intuitiveness is important when you are looking to take a more measured approach to investment. If you work in a stealthy way and are astute when you come across what you feel is a good deal then you can go far without drawing too much attention to yourself.
My advice is set your boundaries, work out what you want to spend your money on and highlight the target for your investment. It is a methodic industry and you have to be on top of your portfolio.
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Karl Reeve has been a writer since he left school. He has wide ranging industry experience and really enjoys writing about sport or the economy.