3 Reasons to Become an Unusual Investor

When we think about investments the usual suspects pop into our minds. We think of the stock market. We think of bank accounts of all kinds, not to mention any tax free options we can get our hands on.

We probably don’t think about wine, art and rare coins. And yet all these items can net you a tidy profit – if you know what you’re looking for and you are prepared to go look for it.

If you need some inspiration, here are three reasons why you might want to consider becoming an unusual investor.

1: it opens up plenty more investment opportunities

If you stick to financial investments such as stocks and bonds you’ll be limited to those specific areas. Once you open your mind to the idea of investing in other areas you will also open up the possibility of reaping rewards in these different areas.

Not all investment opportunities will suit everyone, but it is definitely worth looking into. If you have a passion for fine wine, why not invest in a few rarer bottles to benefit from in a financial sense?

2: if you invest in objects you can do so as a hobby

Few people will see investing as a hobby. However, when you start looking into unusual and quirky investments they can become just that. This is why it is usually better to pick an area you have some interest in. If you love a particular type of art, look for the possibilities to make money in that area. If you love wine, figure out how to start investing in older bottles. If you have a passion for rare coinage, start looking for sources of old coins that could make you a nice profit in years to come.

3: there is the potential to make huge gains on your investments

We’ve all heard of the people who spend a couple dollars on an unwanted picture at a sale, only to find later that it’s worth a couple million instead. These stories aren’t uncommon but they shouldn’t be viewed as par for the course either.

However there is still the possibility to make impressive gains on any unusual investment you make, whatever area it’s in. Knowledge is power here and the more you know and understand about your choice of investments the easier it will be to search for and find the items you want to invest in.

Clearly these types of investments are not your typical investments. You won’t get them from a bank. You’ve got to put in the legwork to find items to invest in and to research the particular items that are worth buying. For example many people buy brand new toys in pristine boxes and put them away with the hope they will appreciate in value in years to come. With knowledge and experience you stand a better chance of getting it right and reaping the rewards from your unusual investments. It’s certainly worth a try, don’t you think?

Starting From Zero: Investing for Newbies

If you’ve just left school or university, and you’re about to embark on your first full time position, congratulations are in order. This is a big time in your life – not just in terms of your career but in terms of your finances too. If you’ve attended college or university already you may have some student debts to pay off in the future, which makes it all the more important to focus on moving ahead with strong financial habits that will support you in the future.

Managing a larger income for the first time

Your first full time job won’t net you a huge income, but it is likely to be a lot more than you have ever received in the past. This opens the door to temptation, and the desire to spend it all as fast as you receive it. Don’t do this if you can help it.

Instead, take the time to sit down and focus on all the plans and goals you have for the future. Even if you have nothing in particular in mind at this stage, it still makes sense to start some good savings habits right from the start.

For example, make sure you figure out your outgoings each month and subtract them from the money you’ll earn. Even if all you do is get the best instant access savings account on the market today and put your money in there, you’ll be allowing it to build up while you decide what else you can do with it.

Is it too early to invest for your retirement?

It’s never too early for that. You don’t have to make it your first priority but it should be near the top of your list of financial things to do. The more you save and the earlier you do it, the more financially sound your retirement will be.

Take your time to make the decisions that will affect your future

You may start finding out more about the stock market and other investment opportunities that will come up. There is no need to focus on getting involved in these to begin with if it doesn’t suit you. Perhaps the most important thing at this stage is to learn more about various investments so you can figure out which ones will suit you best. No two people ever live the exact same lives, so you don’t need to follow the lives lived by others in order to find the results you want.

Whatever your initial monthly earnings are from your full time job, they will seem huge. However you will have deductions from your gross income before you get to see any of it, so you’ll have less to spend and invest anyway. This is one of the reasons why it makes sense to get things right from the very beginning. Learn about investing and saving now and you’ll be glad you took the time to do so. It will repay you long into the future.

Incoming search terms:

Investing Isn’t What It Used to Be

The Internet is certainly a disruptive force – it has change the way we communicate, it has change the way we do business, and guess what – it has changed the way we invest. A lot of people focus on the fact that we’re more connected than ever, that it’s easier than ever to listen and find music, books and movies but the truth is, the business world probably had the most to gain from this particular technology.

The buying and selling of products has reached a whole new level, and all sorts of methods that have made communication easier raised the stakes for local businesses to change the way they think about investments. “I believe in capitalism” said Ken Fisher, Fisher Investments, and with the Internet era, the investment world has seen the best of capitalism.

One interesting fact, an interview from 1992 in Money Magazine was focusing on how brokers were able to gain as much as %2.5 for each trade they did. That was an incredible gain, especially if we’re discussing about large shares. Trading itself is partially what it used to be – meaning that essentially it involves the same series of actions, but then again, the Internet managed to change the edge on that as well.

For example, trade information can easily be sent over secured internet connections. And then we touch the subject of high-frequency traders which in time, has gained a lot of controversy by bringing a feeling of instability to the stock market. By making the stock market more volatile, investing and trading has become a harder trick to pull – as investors would call it.

There’s also a good side of high frequency trading – reducing bid-ask spreads created a spread down to pennies – which is far different from the way it used to be in the past. Now, let’s go a bit through the benefits of the changes generated by the Internet in the investment world.

1.) Transparency – Since the Internet is a way of visualizing data from all over the world, one can easily imagine that investors anywhere can now analyze information and generate their own ideas in regards to price securities – and that obviously brings a lovely change for most. Full-service brokers used to charge their own prices for these types of services before the Internet era, because their customers just didn’t know better. Nowadays, with a little know-how and a little Internet, one can figure it out on their own.

2.) Disintermediation – One can imagine that this is a direct consequence of transparency. It’s not about the broker company’s way anymore – it’s about the investor’s way. Period. And with a complete lack of intermediates, the rate of success can be higher for professional investors. So let’s take the middle-man out of the picture for a change.

Should You Use the Internet to Explore Investment Ideas?

It’s amazing how quickly the internet has become such an integral part of our lives. Most of us are easily old enough to remember clearly a time when the internet didn’t exist and there was no such thing as email, let alone online shopping.

Of course many of us use the internet for research and exploration purposes just as much as we use it for other reasons. However not all internet sources are reliable. If you are using the internet to explore various investment ideas, it is important to ensure you verify your sources and only go to those you know you can trust.

Here are some tips on how to make sure you don’t go astray when you do your research in this way.

Start with well known sources

There are plenty of reliable sources you can use as a starting point. Websites belonging to banks and other financial organizations will provide you with lots of facts. Just remember they will usually only present the information as it pertains to their own business. For instance they’re not going to present their own investments as anything other than the best ones on the market. They’re certainly not going to mention the competition!

Bear this in mind as you explore the vast array of information the internet has to offer.

Use blogs as another source of information and opinions

Blogs tend to focus more on opinions than regular web articles do. They are often written in first person from a single viewpoint, so they can provide further insight into a particular investment opportunity.

However you should make sure you seek out opinions from both sides of the fence. For example you might come across a blog written by someone who has made a lot of money on the stock market. They would understandably be enthusiastic about the possibilities the stock market offers to those who are willing to dip their toes into this area. However they may not make any mention of the potential downside of this area.

To this end you need to find a blogger who is perhaps against the stock market or hasn’t had a lot of success with it. This way you can find both sides of the equation and evaluate them both in your own time.

Bottom line – you must come to your own conclusions when doing research online

Finding investment advice online is much the same as deciding whether or not to buy a book. You read about the book, you read a selection of positive and negative reviews, you think about them and then make the decision on whether to get it or not. Also, make sure that you have money to invest. Don’t add to your debt by taking a payday loan online just because you learnt about a stock thats a sure thing.

Of course choosing a book isn’t as important as choosing investment advice. However you may still go to the same place to get the information you need to make that decision – namely the internet. So by all means enjoy researching investment topics online, but just make sure you edit and censor the information you receive before acting on it in any way.

Incoming search terms:

Penny Stocks Could Cost You a Pretty Penny

Okay so the title is designed to catch your eye. But if you are thinking about investing in penny stocks it is worth realizing you could lose a lot of money in doing so.

This is not meant as a scare story, merely as a way of reminding you that investing in penny shares doesn’t make them any less volatile or safe than regular shares. Indeed, they are generally even more volatile, which is the reason why they are available so cheaply anyway.

Think about the value of a company before you invest

Let’s say Company A has shares valued at one cent each. Company B has shares valued at $6.78 each. Clearly there is a lot more value in the shares of Company B than those of Company A. This is because penny shares are made available by those companies who show promise for the future. They are created largely to generate funds to put back into the company so it can expand and develop.

Of course we all know lots of companies and businesses fail in their early days. So your task is to invest in penny shares released by companies that have the biggest potential for a great future. Lots of people wish they’d invested in IBM or Microsoft when their shares first came out. They’d be worth a lot of money by now. And when you think about the idea behind penny shares it is easy to see how such an investment can seem extremely tempting.

The reality behind penny stocks and shares

Let’s take a look at the reality of the situation now. The truth is penny shares are affordable for many people looking at getting into the stock market. But they are the riskiest shares of all. You may be able to afford more shares from Company A than you ever could from Company B, but that doesn’t mean it is a wise investment.

The bottom line here is to consider how much you can afford to invest – and also to lose. There is a bigger chance of penny shares nosediving in value and becoming worthless than there is of shares in any other company doing the same thing. There are exceptions of course, which is why you should never invest in any types of stocks or shares unless you know what you are doing and what to expect.

Many people say you should only invest money you wouldn’t miss when it comes to penny shares. There is a lot of truth in this. You should never really invest in it to gain a particular amount of money in return. It is far more speculative than other shares, which is why they are not for everybody.

This doesn’t mean you should avoid them at all costs of course. It just means you should be aware of the pros and cons and of what you are investing in. The more you understand about penny shares, the better your chances are of getting it right.

Incoming search terms: