A Simple Guide to Invest Your Money in 2020
Where Should I Invest My Money?
Given that the almighty dollar is a driving force in our fast-moving world, it’s no surprise that we all work hard to make a living. Some eager people even invest money in trading endeavours to increase their wealth.
If you are also willing to grow your fortune, then investing is the right move for you! Depending on your investment goals, there are different options you should consider. From forex trading to investing in real estate, now it’s the right time to start investing your money.
Here we should mention that forex trading is one of the most attractive ways to increase your wealth because forex is considered the largest and most liquid market in the whole world. Whether you are an experienced investor or a newbie in the world of finance, we are here to help you accomplish your investment goals. Simply sign up for our free forex trading course to get started!
Should I Invest My Money In Forex?
Investing in forex is one of the most dynamic investment endeavours you should consider. As stated earlier, forex is considered the largest and most liquid financial market in the world, which attracts investors from all over the globe. Forex trades are done online, 24/7, five days a week, with no physical location.
There are many reasons to invest your money in forex and start trading different currencies. One of the main reasons is that you can start trading with a small amount of money. All you need to do is open a brokerage account and decide on a trading account, a lot, and a currency pair.
In fact, there are various account sizes that traders can consider, including standard, mini, mirco, and nano accounts. You can start trading forex with only $100 and use leverage!
Before traders dive in the world of forex trading, though, they should invest a lot of time in forex trading education. Forex trading books, seminars, courses, videos, and demo accounts are also resources that can help you invest your money successfully. As exchange rates depend on different market expectations, employment shifts, and political events, you can conquer the market only with in-depth knowledge, analysis data, and patience.
With time, traders will be able to establish a profitable trading strategy and a consistent trading style. From day trading to hedging, there are different strategies investors can consider. Trading the news can be also profitable.
Here we should note that consistency is the key to forex trading success. Traders should also explore the complexities of forex trading psychology and their own emotions and attitudes towards investing.
In the end, today’s technological advancements make forex trading highly accessible and appealing. So, if you decide to invest your money in forex in 2020, we guarantee you can make a fortune over time.
Should I Invest My Money in Cryptocurrency Trading?
If you are wondering where to invest your money in 2020, then do not forget that cryptocurrency trading is another appealing investment option.
Cryptocurrency trading is the process of trading virtual currencies and speculating on their price movements. Though bitcoin is perhaps the most popular currency, traders should realise there is a wide range of cryptocurrencies in 2020 that should be considered.
Don’t forget that the crypto market is decentralised and supported by blockchain technology and mining. Interestingly, blockchain technology goes beyond the financial sector and can benefit numerous sectors, such as the gaming industry and medicine. In fact, due to the devastating impact of the ongoing pandemic on economies worldwide, more and more experts explore the opportunities that blockchain technology can offer.
To start investing your money in crypto trading, investors should create a digital wallet and invest in proper trading education. Here we should note that contract for differences (CFD) trading and trading via an exchange are two popular methods to trade cryptocurrencies.
Despite some notorious cryptocurrency scams and the high volatility of the market, investing in cryptocurrency trading is the right thing to do in 2020!
Should I Invest My Money In Online Stock Trading?
Though many people think that the stock market is reserved for the wolves of Wall Street, or people like Peter Lynch, the truth is that you can easily invest your money in online stock trading.
Stocks are defined as shares of a big company, which gives traders the so-called ownership equity, including voting rights and potential earnings.
Interestingly, stock exchanges started in the 16th century in big trading hubs around the globe, including London. It was in the 18th-century USA where facilitated equity shares trading began to flourish.
Today’s technology allows more and more traders to enter the market, based on fair transactions and market makers' moves.
Here we should note that stocks can be classified by two factors: 1) market capitalisation; 2) different sectors (e.g., energy, materials.). Apart from exploring the complexities of stock trading, investors should also familiarise themselves with the importance of stock indices. There’s no doubt that one of the most important indexes is the Dow Jones Industrial Average.
Although investing in the stock market can be risky, with proper education and practice you can master the art of trading. After all, investing your money in stocks is a reputable and profitable financial endeavour!
Should I Invest My Money In Bonds?
Investing your money in bonds or coupons is another great investment option in 2020. Before you invest in bonds, make sure you understand the basics of trading bonds. Bonds are defined as loans by investors or creditors to borrowers, which are often corporations and governments.
Investing in bonds is not as risky as other trading methods as there is a maturity date when borrowers pay back to investors. That being said, some bonds, such as high-yield bonds, can be risky, so always invest in education and market analysis data. If a company seems to become less profitable, traders can initiate the so-called defense trades and pull their money out.
Just like in other investment fields, there are also bond mutual funds where you can invest your money along with other traders. Even with a small investment capital, you can achieve portfolio diversification and make a profit by investing your money in bonds!
Should I Invest My Money In Funds?
Another option to invest your money in 2020 is to invest in funds. From hedge funds to exchange-traded funds (ETFs), investing in funds is a profitable investment method.
We should mention again that mutual funds, in particular, are highly popular. A mutual fund is defined as a financial entity with many investors, in which a manager invests the money in different assets (e.g., bonds, real estate, stocks, etc.).
As there is a variety of mutual funds available, investors can explore different strategic moves. For example, traders can invest in fixed-income securities, balanced funds, index funds, specialty funds, and others.
Do not forget that trading mutual funds is different from exchange-traded funds or stock trading. Why? Simply because funds are traded after the market closes and prices are determined by the net asset value at the end of the day.
Given their specifics, mutual funds are ideal for long-term investments. They are liquid and diversified, so do not hesitate to invest your money in mutual funds in 2020!
Should I Invest In Commodities and Real Estate Trading?
Exchanging commodities is the oldest form of trading. Now, commodity trading is still an important form of trading around the world. Commodities can include gas, gold, and so much more. In fact, they can be divided into four big groups: metal, energy, agriculture, livestock and meat.
Many traders choose to invest in commodities to tame the volatility of the trading world and diversify their portfolios beyond conventional securities. From future contracts and options to exchange-traded funds, there are different methods to invest in commodities.
That said, though now commodities trading is a popular form of investment, it can be risky. Simply because the principles of supply and demand can be affected by numerous unpredicted epidemics and conflicts! To provide an example, a fatal disease that impacts birds can lead to high demand.
When it comes to gold, we should note that gold has always been seen as a safe haven. Whether you decide to trade gold through ETFs or buy stocks in the gold mining sector, investing in gold can pay off and help you double your investment.
Another hard asset worth investing in is real estate. Given the housing crisis around the globe, owning and trading real estate can be lucrative. Note that you can buy real estate using leverage. Though real estate investment groups and trusts are interesting investment options, there are some other active ways to make a fortune. Becoming a landlord or a flipper (to buy and repair undervalued property) are amazing ways to invest your money in real estate.
To put it simply, do not hesitate to invest your money in commodities and real estate trading in 2020!
Should I Open A Savings Account to Invest My Money?
Though trading is a great way to invest your money in 2020, you can take a more hands-off approach and simply open a savings account. Note that these days the interest rates across the globe are extremely low, with banks paying pennies for deposits.
Yet, you should research compound interest rates, defined as interest on interest. Having a credit card account with the same bank holding your money can also lead to small benefits that can increase your savings.
Emergency and pension funds are also important investment options in order to help you lead a comfortable life.
Why & When Should I Invest My Money in 2020?
Even though many people work hard, not many can make ends meet. Therefore, do not hesitate to take an active approach to your money and start investing. As stated above, there are different ways to invest your money in 2020.
Whether you choose to trade forex or stocks, being an active investor has many perks. Trading can help you develop different skills and allow you to understand the world of finance. After all, we all know that learning is a life-long process.
Being a trader with a great portfolio can help you make a name for yourself. Start making connections and become your own boss!
Perhaps the most important motivator is to make money to lead a good life and provide for your family. Here we should note that depending on your strategy, trading can lead to returns in either the short- or the long-term.
Interestingly enough, though there are different stages in life when people decide to trade, there are three major groups that make investments: young people, families, and adults concerned about their retirement. Yet, they all have one thing in common - their active style and desire to succeed.
Even if one starts to trade part-time, with trading education and practice, they can become successful full-time traders. It’s never too late to invest your money and dive into the world of trading!
- Money doesn’t grow on trees, so investing in 2020 can help you make a profit.
- Our fast-moving world offers numerous investment options.
- Forex and cryptocurrency trading are among the most appealing investment options. After all, forex is considered the largest market in the world, while blockchain technology is increasing in popularity amid the coronavirus pandemic.
- Investing in stocks, bonds, and funds is also a profitable and prestigious endeavour.
- What’s more, traders can invest in commodities and real estate.
- When it comes to making money, consider opening a savings account, too.
- From EFTs to CFDs, there are different ways to invest and make money, either in the long- or the short-term.
- It’s never too late to start investing and become a full-time trader.
Investing is not a get-rich-quick scheme, but rather a way to consistently grow the money you already have. The good news is that even though investing is a way to grow your money, you don’t have to have a lot of capital to get started.
Start managing your own finances and remember that investing is not gambling. Investing money successfully requires a lot of learning, practice, and self-discipline!
Trading Courses for Beginners
Trading courses that are designed for beginner traders are able to teach you important things you need to know about the financial market, how to choose financial assets, when to buy and when to sell, and much more.
They are designed to walk you through the process of trading one step at a time, teaching you trading strategies and how to apply them in a much more efficient way.
We at Trading Education are here to help you become a better trader. Simply explore our website or sign up for one of our comprehensive trading courses.
This material should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors.