Most People Have No Idea What Investment Is, Do You?
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So you want to know the answer to what is an investment?
Investment seems like a concept everyone should know all about but what is an investment? Looking at this world and how poorly people do at utilising their resources, it seems that the concept needs a lot more clarification. Let’s provide that and put it in the context of a free forex course.
What is investment in general? well, it may just be mankind’s best discovery.
Animals drink because they are thirsty, hunt when they feel hunger and only react to the environment.
Humans overcame that process by predicting the future and knowing how to spread out their time, efforts, and resources in advance. That’s what investing is all about – knowing your needs and generating the value to fulfil them in advance.
That’s why we have crops to harvest, cars to move around, medicine surplus, healthcare, and so on.
The value (and price) of all of these things increases over time. Compound interest is one of the most powerful concepts every beginner trader must get to grips with. As your money develops, it's interest percentage stays the same.
That way you make more money with each year. Learn more about compound interest in our article on the topic.
What is an investment in terms of money?
You must start looking at money from a different angle. Your cash is constantly losing it’s worth as increasing expenses take their toll on your life. You may get a salary, perhaps even a good one, but it’s often not enough to thrive in this economy.
The value of money drops constantly due to inflation. And while a loss of 2% every year may not seem like much of a big deal to many, those small sums add up to a lot in the long run.
Remember how we answered the question what is an investment? It’s about growing your resources by planning. Well, the simple math is that investing has the chance to gain you more money and not investing has the absolute guarantee of your finances losing value in the long run.
All huge sums are created from small units. Don’t treat a million dollars as anything other than a large collection of pennies.
That’s how fortunes are built – step by step until you’re on top.
What is an investment in relation to forex trading?
Forex is a market that moves trillions of dollars every single day. The idea is to take advantage of the values of currency and make money as they shift.
Exchanging currencies bought on a cheaper price is what forex trading is all about – the de-facto goal of the market.
As you probably know by now, these values shift constantly depending on world events. A political speech made by the President of the United States may have a drastic effect on the markets, thus shifting the worldwide currency market.
As currencies are all part of the world economy, one event has a domino effect. All dominoes are affected and you need to know where they’ll fall. That’s the essence of successful forex trading.
Becoming a proficient forex trader could not only help you preserve and grow your wealth but also make it apparent that the world economy is a living, breathing beast. You have to be on its good side if you are to thrive.
You might also like: What Are the Top 5 Tips to Learn Currency Trading?
What is an investment in education?
Education will always be among the best possible investments. In the current climate, it may seem like we get many stories of people who are locked into crippling debts for useless degrees in irrelevant fields.
Does that make education a bad investment? No, not really, it only means that people are making the wrong choices, just like in forex trading. You need to spend money to make money and you’ll have to get some basic education to advance on the next level.
That’s why Trading Education’s beginners Forex course is completely free of charge.
We want you to invest your time so you can learn how to utilise your money. Our course is specifically designed to help traders start up and begin their journey in the world of forex trading.
Knowledge can get outdated, but the principles you learn will always remain in place, thus, there’s no inflation. There’s no lost value in learning how to analyse the market or how to work with numbers.
Trading Education’s course will give you just that – a methodology on how to approach the forex trading market and have the chance to generate another source of income.
A forex trader can work wherever there’s an internet connection – from an exotic beach to your backyard. Our free forex course is no different. You can take it from anywhere on the globe. Just like trading all you need is a good internet connection.
You should also bring an eagerness to learn and a plan to use your money wisely into the future. Start now and take the first step towards learning how to get financial growth in the forex market!