So you've decided to secure your future by investing your hard-earned money in something you're not exactly sure of yet. Investment is a wise move if you want to guarantee the financial success of your future. It may be a little challenging at present, since majority of your money will go some place where you have no access to for a long time.
Investment involves risks and what makes it different from gambling or speculation is that investment involves a long-term outlook. Gambling is just sort term. Sure, you could earn hundreds of thousands in a matter of minutes but if you lose, you'll easily lose the same amount, if not bigger, faster. With investment, you have many avenues to explore and choosing the right one is such big of a risk that it needs weeks or even months of studying and preparation.
One concept you need to familiarize yourself with is implied volatility. Basically, implied volatility is the assumption of a stock's future unpredictability based on the price of its stock options. Volatility means instability and the higher the stock prices, the more unstable it becomes. As stock prices decrease, the less unstable it will be. Implied volatility is an indicator of what traders expect in stock prices. Low volatility translates to stock prices remaining stable and unchanged in the next few days and vice versa.
While implied volatility is one of the criteria to consider in choosing investment ideas, it shouldn't be the only factor to think about. Financial experts constantly predict money-making investment ideas and if you are planning to invest thousands of dollars, you should definitely try to catch up before you end up wasting your life savings on stocks that will be worthless in just a year or two. For instance, top experts expect this year to be a good idea to invest in high quality companies, meaning corporations backed with strong finances and visible growth in earnings.
Investing in China as an emerging market seems to be a wise move too and if you want to invest in gold, don't let anyone stop you. Merrill Lynch predicts that gold will rise around 20% higher before the year ends, being priced at around $2400/ounce by the end of next year. Also explore other precious metals such as silver and platinum as these are also expected to increase in value in the upcoming months. Real estate, on the other hand, is nothing to be worried about anymore. It seems that the industry has become more stable and mortgage rates are said to be at historic lows. Consumers are starting to invest in real estate more and houses no longer takes months or years to get sold. Finally, technology is always an area where investment is most likely to produce positive results.
If you are still unsure, you can always test financial strategies prior to executing your investment plans. It's your money and you've worked years to save that amount for yourself. Doing proper research is the least you can do to really secure your future and make sure that those dollars will be invested in stable industries or markets.
Written by Samory Borry
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