Are you ready to throw your hat in the investing ring?

As a rookie investor, you certainly have an idea of how unforgiving the world of investing can be. Make bad moves and you stand to lose more than you invested. Yes, in some investment markets losses can exceed deposits.

But the same world is also full of promise. Think of any of the richest persons and you’ll quickly realize they’ve made their wealth through investing.

So, you’re primed to get started, but where and how do you start? The following investment ideas for beginners can help you start on solid footing.

Read on!

Invest in Your Knowledge

The most important thing you can do before you even start investing in real assets is invest in your knowledge.

If you’re a driver, take back your memory to the days you didn’t know how to drive. If someone puts you in the driver’s seat, you wouldn’t know how to drive. The best you could do is fiddle with the steering and the gear. Or if you attempted to start and drive the car, you’d likely crash.

It’s a similar situation when you start investing without having adequate investment knowledge. Take time to learn about various investment markets, the economy, and everything in-between.

You want to step into the investing ring feeling well-prepared; otherwise, a knockout will be imminent. You can even seek the advice of a professional, like those at rvwwealth.com.

Invest in High-Yield Savings Accounts and Certificate of Deposits

A typical rookie mistake is shooting for the stars right from the start.

You’ve probably heard stories of beginners who made a ton of money by riding a stock market swing. That’s not investing, really. That’s luck – or more precisely, gambling.

Investing requires tact, strategy, and patience. There’s no better way to develop your patience as an investor than investing in savings accounts that pay interest.

A Certificate of Deposit (CD) is a fixed deposit account that pays out interest after a specified period of time. For example, you put $1,000 in a CD that pays 5 percent per annum. At the end of the year, you’ll pocket $50 interest. The principal amount can be rolled over to another year.

$50 sounds like some change, especially when you have to wait for an entire year. Enter high-yield savings accounts. These are CDs that pay a lot more interest within a shorter span.

Either way, you have to wait for the term to lapse so that you can pocket your interest. Patience pays!

The Stock Market

The stock market has all kinds of players, from big-time investors to rookies like you. It’s a democratic market in many ways, but as a beginner you’re disadvantaged.

Nonetheless, it’s an ideal market to invest in, especially after you’ve learned how to be patient. Pick a stock carefully, put your money, and wait for it to gain value.

Use These Investment Ideas for Rookies

There’s no doubt that investing is a good strategy to increase your income and build wealth. However, as a beginner, you need to know your way around various markets. Use these pro investment ideas to your advantage.

Explore our blog for more investment advice.