If you've saved enough money to last you for at least six months, now is probably the best time to consider investing in real financial assets or derivatives. They will allow you to make better use of your money.
Once you understand the most serious reasons to make an investment, you will be better prepared to determine your investment strategy .
Your investment strategy will determine what percentage of your funds to direct to high-yield investments such as stocks, commodities and CFDs . As well as the share that will be exposed to very little market risk or to a trust fund. These options can represent your investment portfolio.
You also need to choose whether to focus on short-term or long-term investments. You need to know how much energy you would spend on investing in real assets and derivatives. If you invest to earn extra income while still having a steady job, you may prefer longer-term strategies.
In case you are investing full time, short-term investment strategies could be beneficial. Investment strategies such as day trading or scalping may be appropriate in this case.
Your risk tolerance will be affected by the remaining time to achieve your financial goals. If you have a few years before you need the funds, you could bet on a high-return, higher-risk investment.
* The younger generations, who have decades before reaching retirement age, are likely to be able to afford to take more risks. A high-risk, high-return investment strategy will involve a portfolio of more stocks or even trading profitable CFDs on cryptocurrencies . Younger investors often choose shorter-term investments.
* As you get older, your strategy may acquire a lower risk profile, with a lower return. Foreign exchange and commodity markets are highly liquid and are a good investment environment for traders and investors between the ages of 30 and 60. This is also a time when you may decide to reduce your shares. You must not forget that there is no exact formula for 2020 investments. It all depends on your finances, your long-term financial goals and risk tolerance.