Published On: Thu, Oct 15th, 2015

Getting Involved With Investment Markets

When you are first starting out, getting involved with an investment market can seem like a daunting task. There are many different markets, and a lot to know about each of them. To try and make things a little easier, below is a short guide that should supply you with the basics. Once you have read the information on this page, and in the resources we have provided, you should have a better idea on how to get started.

Main Types of Investment Markets

First, we will go over the 3 main types of markets. Chances are, this is where you will do most of your investing, especially when you are first starting out.

Stock Market – When people think of investing, often the first thing that comes to mind is the stock market. This is where you buy stocks in publicly traded companies, and make a profit based on how that company performs. To learn more about investing and trading in stocks, you can use this guide.

Forex Market – Rather than investing in companies, with the Forex market you can invest in currencies. Since currencies all over the world are constantly changing in value, investors can try to use this to their advantage to earn a profit. By exchanging for a currency when the value is low, then getting rid of it when the value goes back up, smart investors can make money off of the shifting economic climate. To learn more, we recommend this tool by Alvexo’s Pinterest account.

Debt (or Bond) Market – The third major market is investing in debt. In this scenario you are essentially acting as a bank, buying up debt, and earning interest on the payments made towards it. Investing in bonds or debt can be risky, depending on who’s debt you are purchasing, but the benefits may be worth it. If you would like to learn more about investing in bonds, you can use this resource.

Other Types Of Investments

While the three markets mentioned above are the most popular investment markets, they are not the only ones. If you want to try other investment opportunities, consider one of these options:

Physical Assets – Rather than investing in stocks, bonds, or currencies, you can invest in a physical asset. Common assets include real estate, diamonds, gold, etc. There is a lot to know about each type, and we highly recommend that you research the specifics of a certain asset, rather than just investing in physical assets generally.

Derivatives – Lastly we have derivatives, which is probably the most complex market for beginner investors. When you invest in derivatives, you are investing in the underlying value of something, such as stocks, currencies, interest rates, or a physical asset. As the value of the underlying asset changes, the value of the derivative changes. For more in depth details, visit this link.

Getting Started

We hope this short guide shed some light on the different types of investment markets. If any of these interested you, from here we recommend researching that particular market more in depth. You don’t want to jump into any investment too quickly, so the more research you do the better. There are plenty of free resources online available to you for each market – all you have to do is look for them.