Market Information

Market Information

Buying the Right Securities to Fit Your Investment Needs

Tuesday, September 25, 2018

Ready to take the lead and enter into the world of investing? The first steps can seem overwhelming due to the complexity of the field and how much information there is out there. To turn your lead of faith into a lead of confidence, the wary investor will read up on a few aspects of the securities business before handing over their hard-earned dollars. Here are a few things to keep in mind that could help you turn a profit down the road when looking into buying your first securities.

Find the right investment style

Not everyone has the time or inclination to wade into exchanges and markets on their own. Learning the ropes takes time, and finding the right path toward successful investments is different for every potential investor. The two traditional methods of investing are finding a stockbroker to manage your assets or going it alone and parsing through the best investing tactics with your own knowledge and intuition. Stockbrokers are expert investors but their fees can be high for those who are planning to get into buying securities as casual investors. If you go with a stockbroker, then it’s important to make sure that you are investing enough money to offset their fees and make it worth your time. Independent investing comes with its own risks, and if you want to go this route, be ready to spend a lot of time reading up on the markets. Fortunately, the last decade has seen the rise of a third option.

Automation Offers New Method of Investing

As technology improves and people become more confortable with using algorithms in their daily lives, artificial intelligence has culminated in the robo-advisor. These new investing services are catching on around the world, and they offer investors a new opportunity: the ability to leverage artificial intelligence to help you make informed decisions on buying securities. Robo-advisors offer services that usually cost a fraction of what it would take to employ a human stockbroker. Two of the most popular services in this developing industry are Wealthfront and Betterment.

Accessing Your Level of Risk

Before buying securities, it’s important to be very intentional and honest as to what your financial goals are in the short- and long-term. As one would imagine, investment opportunities that pay the most are also the ones with the most financial risk. Investing with a longer perspective in mind is often the safest way for new investors to enter into markets without losing their shirt. Luckily, options for investing are almost endless, and investors of all shapes and sizes have plenty to choose from. Make sure to familiarize yourself with the different levels of risk that are attached to each investment before committing.

Understanding Mutual Funds

Mutual funds can be a tricky beast. Chances are you’ve heard the term “diversifying your investments” and that’s exactly what mutual funds can help you do. A mutual fund is a package of securities that are bundled together and sold as a single financial asset. That means when you buy into a mutual fund, you are buying into a diverse portfolio of securities that help to spread the investing risk out over many companies and industries. Mutual funds are a great option because the risk is mitigated in such a way that if some of the securities in the mutual fund lose their value, there are still other assets that provide value to the fund, and in turn, to the investor.

These points will help to acclimate new investors to the world of investing. In Australia, the main stock exchange is the Australian Stock Exchange, but there are other options for investing that could lead to bigger profits like opportunities in markets specializing in unlisted securities.

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