A smart investment for the beginner: To understand the very Basic Fundamentals rules about the Market for beginner and about How they place their Smart investment in the market foundation.






There is a lack of people who choose the way of investment but it will be hard if someone decides to invest. A common question always araising in all beginner's minds those are How to invest and where to invest and what is the safe way to invest? and a lot more questions. If the same ghost killing you inside your mind so don't worry and gonna discuss all the above topics briefly and a lot more details regarding your first investment.


Basic investments For beginners. 

To understand the Smart investment one has to about a basic investment which is discussed earlier post please take a look at What is an investment?

I hope that you will have some basic knowledge of investment. If no don't worry we will discuss shortly.

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There are two types of the market sector are available for Smart investment and to become a smart investor are 

  1. Trading 
  2. Investing 


Trading:

In the Trading platform, there is a graph of buying and selling of stocks, commodities, shares, and currencies. Basically, these are the platform where buyers and sellers are struggling against the 2 axes of price level and time. 



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The Graph will go up when there are more buyers so that the asset price value goes on buyer's demand and hence to graph goes up for a certain time period. 

The Graph will go down when buyers are lost and the seller comes in and there are more sellers in the market, therefore, the price demand for such asset breakdown and the graph go down with the market.

The investor forecasts the market chooses the price level point and a certain time period for the graph whether it will go up or down and enter the investment. The investment return depends upon the accuracy of the investor's forecast. if the forecast goes wrong the investment amount blows up completely and no single pip will be on hand.

The golden moment is for certain time periods the graph remains up and down along with the market and turns to change most of the trader place their invest with such types of turnings. if you cant getting no need to worry we will discuss it in the previous blog shortly.


Investing:

in the investing platform, there also a graph like the trading platform but there also struggle between buyers and sellers.


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But, in this case, investments are being placed by buying stock, shares, and indices. The investors study the market from the graph and entry the investment by completing some formalities. The investors get returned when the asset values go up. 

If the asset price value is on-demand then the investors sell it market demand price and get paid

If unfortunately, the market goes down due to some eventual problems the investors lose some extent of his capital. Because there always exits a stop-loss to protect investor's invested amount.

But as we promised INVESTORSGAME always with the beginner to protect them from losing ghosts and design their investment career.






So here we discuss the basic foundation of Market investment by Distinguishing between TRADING vs INVESTING.



 TRADING:
  1. The action of buying or selling for short-term profit gain.
  2. It can make money in an upward and downward moving market.
  3. We use Technical analysis for forecasting the market movement.
  4. Relies on volatility to move price over short periods of time.
  5. It does not have own instrument to trade it. 
  6. Sensitive to market noise.



 INVESTING:
  1. The action of buying for long term gain
  2. Based on future value.
  3. Fundamental analysis is needed.
  4. Needs long term growth.
  5. Must be won instrument to trade it.
  6. Sensitive to News.  



So it's all about the basic market knowledge to Smart investment for Beginners and If you looking for an investment this is the Basic knowledge that every beginner should know. This foundation introduces how the market works and how risks are performing and how to manage it.

In the coming session, we will go deep in the market and discuss a lot more detail about Market basic. Don't try to be advance quickly in a market huge amount of Basic and patience are needed. so go deeper and deeper in basic as much you can. Because more you go basic stronger your strength in Investment and more the strength in Investment more you become smarter.


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