What you need to start investing

What you need to start investing and how to become an investor from scratch. A beginner investor’s guide with examples.
how to start investing correctly

The main purpose of investing is to invest money in an asset that will become a source of stable passive income. Potential profitability depends on where the investor invests money. When working with real estate, the average yield is 10% per annum. Investments in financial instruments, such as stocks or options, can bring the owner up to 100-200% per annum. For example, AMD (Advanced Micro Devices) shares alone brought 131% in one year.

Working and reasonable ways to start investing for a beginner are to use ready-made solutions, while a novice investor is little familiar with the specifics and peculiarities of the work of stock markets and financial instruments.

The common misconception that investing is difficult is dispelled by successful investors. As Peter Lynch (one of the most successful traders of our time, under whose management Magellan Fund became the largest in the world) said:

“All the math you need in the stock market is taught in fourth grade.”

Below you will find various ways to start investing for a newbie from scratch and ways that are available to everyone.

Contents Show
What you need to know about investing
Investing in a general sense is investing money in various assets or financial instruments to obtain passive income.

Common and proven options where everyone can start investing are:

Real estate objects (the most profitable option is investment in commercial real estate: parking, retail and office premises or apartments);
Shares of the largest companies;
Bonds of corporations or federal loan (OFZ);
Precious metals;
Buying a ready-made business for a franchise;
Venture or hedge funds;
Business and equipment.
The subject of investment is any asset or phenomenon that can be expressed in a financial assessment and is capable of increasing the initial value in the future.

Simple investment classification:

Real investment. Acquisition of real objects: real estate, buildings, land participants, equipment.
Financial. Purchase of financial assets by an investor: shares, shares in a company, provision of loans or borrowings, investments in a start-up business project with subsequent participation in the distribution of the company’s profits.
Over 10 years (2010-2020), the value of 1 share of Nvidia Corporation increased from $ 17 to $ 540, increasing the initial investment by 3076%. If then the investor bought 10 shares and sold them in November 2020, then the starting $ 170 would turn into $ 5400 – a great example of how to start investing with a small amount.

Every day, new technological, medical innovative, and other breakthrough companies enter the market where you can invest money.

It is interesting to look at the successful experience of other countries. For example, in the United States, 52% of families invest an average of $ 40,000 in the stock market. Families with an annual income of less than 35 thousand (19%) invest an average of $ 8400, and families with an annual income of more than one hundred thousand have an average investment of $ 138,700.

What you need to start investing and how to become an investor from scratch. A beginner investor’s guide with examples.
how to start investing correctly

The main purpose of investing is to invest money in an asset that will become a source of stable passive income. Potential profitability depends on where the investor invests money. When working with real estate, the average yield is 10% per annum. Investments in financial instruments, such as stocks or options, can bring the owner up to 100-200% per annum. For example, AMD (Advanced Micro Devices) shares alone brought 131% in one year.

Working and reasonable ways to start investing for a beginner are to use ready-made solutions, while a novice investor is little familiar with the specifics and peculiarities of the work of stock markets and financial instruments.

The common misconception that investing is difficult is dispelled by successful investors. As Peter Lynch (one of the most successful traders of our time, under whose management Magellan Fund became the largest in the world) said:

“All the math you need in the stock market is taught in fourth grade.”

Below you will find various ways to start investing for a newbie from scratch and ways that are available to everyone.

Contents Show
What you need to know about investing
Investing in a general sense is investing money in various assets or financial instruments to obtain passive income.

Common and proven options, where on