Investing In Bonds | Are You An Investor Or Trader?

Some of your money should be invested in bonds, while your balance money should be invested in stocks. The younger you are, the more you should opt for stock market investing, investing more in bonds as you get older. When investing in the stock market you should invest in shares of companies with a potential for growth and a good track record.

There are different sizes and categories of stocks. There are: large, mid and small caps, and penny stocks. As a beginner, you should invest in large and mid cap companies. Once you gained enough experience, you should consider investing a small portion of your money in small caps and hot penny stocks. This is a risky kind of investing but if handled properly it can give large returns. Note that it needs expertise and nerves of steel.

You should not jump in something stock market investing; it needs a lot of time to learn the basics of stock market investing. You can start investing once you have gained some experience. It is suggested to invest small amounts of your money over a period of time rather than investing all the money at once.

Bond investing is quite easy as compared to stocks. You can get a list of high rated companies and government bonds from your banker or broker easily. Bonds will give you a good return only if you hold them for a long time period. On the other side people wanting returns in short period can look for investing in stocks and at the same time stocks can be held for long time too.

Ignore tips from others on which share to buy. This applies especially to hot penny stocks as these are considered the riskiest investments. They are to be considered only after you do thorough research on the company concerned and all other related factors. Happy investing!