Measure Twice, Cut Once with Investment

Measure Twice, Cut Once with Investment


The idea of investment isn’t difficult to convey. Basically, you just buy stuff low prices, then sell it for more once the value has raised. Sounds easy right? Wrong. Because the basics of investment are easy to understand, we’ve got a whole globefull of people who are trying to do the same thing. Some of them are good at it. Most aren’t. But it’s all of these tricky people trying to make a buck that makes the investment landscape somewhat…picked over.

This isn’t to say that there aren’t lots of great investments to be had at all times. It’s simply more difficult to find them, since there are so many people looking. It requires new investors to get a lot better at their chosen profession before they hope to become full time investors. This is a major problem in the industry. Would-be investors get in over their heads and lose a lot of money before they’re prepared. What I want to convince you is not to count yourself among them: in essence: measure twice, cut once.

This is because new investors are easy to take advantage of. New investors don’t have years or decades of knowledge and experience to rely upon. That’s why there are a thousand different companies which exist only to prey upon the impressionable minds and wallets of fresh investors. That why, in investment, preparation is one of the best allocations of resources that you’ll ever make.

How do you prepare? By learning as much as you can about your chosen form of investment, and practicing it with play money. Investment education with CMC Markets is a method that I personally value very highly. They have a bunch of short term investments made available to investors like you: FX trading, CFD, etc. But in all cases, they make it possible to try these new investment forms without actually risking any money.

Investments like these go by fast and furious. Because they are all forms of day trading: investments which resolve in minutes or hours, you’d risk losing a lot of money very quickly if you simply tried these investments without first learning how they worked. That’s why you spend a lot of time reading and educating yourself before you set up a real financial account. Once you’ve learned, however, go to town and see huge dividends.

I focused on FX trading because it’s a simple, short term investment which beginners can understand. But the rule of research (a lot) before starting a new investment form is true for investors of all stripes. No matter what investment you’re trying to initiate, make sure you know everything there is to know about it before you start risking your money. Don’t get wrapped up in the fear of missing a once-in-a-lifetime opportunity. Don’t let financial worries of the moment get in your head. Invest only when you know that you know what the risks are, as well as how they are avoided. When you’re mastered the theory of a new investment, you’ll be ready to dominate that investment and let it start bringing cash into your life.