BASIC'S OF INVESTING

 BASIC'S OF INVESTING:

The main consideration of any investment include the following,

1.The amount of RISK it holds.

2.How EASY TO UNDERSTAND.

3.The LIQUIDITY of the investment.

4.The expected RATE OF RETURN.

5.The BROKERAGE CHAREGS for BUY&SELL.

6.The ongoing EXPENSES FEES.

There are 4 major types of investing:

1.Stocks.

2.Bonds.

3.Mutual finds.

4.Exchange traded fund's(ETF's).

1.STOCKS:

• Represents actual OWNERSHIP.
• Offers potential for DIVIDENDS AND GAINS.
• Investor may be BUY or SELL THE SHARES through BROKERAGE FIRM with a TRADING FEE and ongoing EXPENSE FEES.
• Advantage of stocks include POTENTIAL FOR GAINS, DIVIDEND INCOME.
• Disadvantage of stocks include VOLATILITY, FAVOURABLE TAX TREATMENT, CHARGES.

TYPES OF TRADING STYLE:

Here I mentioned types of trading style including TIME FRAME, TIME PERIOD.

1. SCALPING--------SHORT-TERM-------SECONDS OR MINUTES.
2. DAY TRADING------SHORT-TERM-----1 DAY MAX-DO NOT HOLD.
3. SWING TRADING----SHORT/MEDIUM TERM-----SEVERAL DAYS OR WEEKS.
4. POSITION TRADING----LONG-TERM----WEEKS, MONTHS, YEARS.

2.BONDS:

1. Bonds are issued by the governments or corporate companies for RAISE THE FUNDS to the company.
2. Incase you will be buying a bond you are the issue loan for the company moreover the company promises they agree to pay the loan to specific maturity date and interest.
3. Here the buyer of stock in the company, they have rights to lead or ownership of the company, but bonds holder they don't have any rights for ownership .

EXAMPLES OF BONDS INVESTMENT AND RETURN:

TYPES OF BONDS:

1. TREASURY BILLS(<1 YEAR).
2. TREASURY NOTES(2-10 YEARS).
3. TREASURY BONDS(10-30 YEARS).

3.MUTUAL FUNDS:

1. Mutual fund is a type of financial, A POOL OF MONEY collected from DIFFERENT INVESTORS to invest in the STOCKS, BONDS&OTHER ASSETS.
2. Mutual fund is giving a decent return based on CAPITAL.
3. The mutual fund companies maintain a HIGH VOLATILITY PORTFOLIO.
4. If you are invest in the mutual funds must research the background of companies and return statement.

TYPES OF MUTUAL FUNDS:

1. Money Market Funds.
2. Bonds Funds.
3. Stock Funds.
4. Target Date Funds.

4.EXCHANGE TRADED FUNDS(ETF's):

ETF's is allow to TRADING GLOBALLY to BUY and SELL THE COMMODITY, CURRENCY.

For example if any investor is willing to invest in FORIEGN COMPANIES through ETF'S.

TYPES OF ETF's:

1. Stock ETF's.
2. Bond ETF's.
3. Industry ETF's.
4. Commodity ETF's.
5. Currency ETF's.
6. Inverse ETF's.