Investments are opportunities to use your money with the intention of making profitable returns. This is a popular alternative to money just ‘sitting’ in a bank account earning very little in interest in the current climate. There are various sources of potential income open to investors, such as property, bonds or company shares on a market. Investments are long term earners. In contrast, the activity of trading sees financial assets bought and sold in much quicker succession, typically over a matter of months. Trading is based on an analysis of short term trends that can be taken advantage of.
Investments into financial markets should be based upon an evaluation of expected gains and long term trends. Such investments should offer reasonable assurance for the return of the invested amount and for the receipt of projected gains, within a specified period of time. This is arguably different to speculation, when money is handed over after researching the markets but without a high degree of certainty of being able to gain back the originally invested sum of money or any profit on top of it. In other words, it is usually higher risk.
The success of all investments is at the mercy of the markets. Extensive analysis is therefore crucial to identify investments that will offer stability. You can do this research yourself, but many people find it useful to opt for a ‘middle man’ with expertise. This is where banks or investment advisors can help you by investing your money for you.
How to Buy Shares guide offers detailed information on how and when to buy, how and when to sell, what type of investments you could choose to make and how to leverage your investments.
The popularity of investments is particularly relevant in our economy today, where money can no longer earn big interest rates in bank accounts and many government pension schemes no longer seem so rosy. Clever investments can make your money work for you. However, no investments are a safe bet; the possibility of loss always exists in a financial market. Therefore, when you commit your funds to buying shares, it should be a calculated investment rather than a gamble. Making use of the services we provide can help you make intelligent decisions with your investments.
Risk warning: Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.