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Today’s guest post comes to us from Stella Workman. Stella is a freelance writer who normally provides savings accounts reviews.
Best Ways to Get Started With Investing Online
The best ways to get started investing online often begin with identifying those investments that carry lower risk and understanding those investments thoroughly. Learning the basics of any market is essential to successful investing.
The stock market is now more accessible than ever and is also one of the best ways to get started with investing online if you have studied the market and how it works. Stocks are generally considered a higher risk investment than some other markets but also can have nice returns if you are successful with the investment.
You can now invest in most stocks online with less than $100. The key to making a sound investment in the stock market is studying the history of the company that you are interested. Most companies with a steady increase over the past several years are a good stock investment.
Unlike traditional investments, such as stocks and bonds, affiliate marketing is quickly becoming a popular way to invest online. Large companies often offer customers a chance to advertise their products on a personal or business website in exchange for a small amount of profits that come from sales through those advertisements. If you already have a website then affiliate marketing may be one of the best ways to get started with investing online.
Affiliate marketing isn’t for everyone, however. You do need a space to advertise for other companies and will usually make much smaller profits through this type of investment than with traditional stocks. If you are looking for one of the best ways to get started with investing online and prefer a much less risky type of investment, then you may want to consider a 401k or other type of diversified account.
A 401K account is a diversified investment that is typically a long-term investment. One of the best ways to get started investing online is to find an account that allows you to invest on a regular basis over the span of time. Each time you add money to the account the company will invest small percentages in several different types of investments.
With a diversified account you have a great chance of seeing returns on the investment and successfully lower the risk of losing your entire investment. This is a type of investment that generally lasts for ten years or more, however. There are other types of diversified accounts that you can invest in, as well.
The Bottom Line
When searching for the best ways to get started investing online, your knowledge is the best tool you have for making the decision. Since there are so many options, it is usually best to choose one type of account and stick with it until you have a good working knowledge of how to make sound investments.
How about you all? Where do you invest online? Do you worry about the security of sharing your information online, or are the protection measures taken these days enough to give you peace of mind?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- @ Investing in stocks – Personally, I don’t partake in investing in individual stocks, nor do a recommend it for normal individuals. Why is this? The evidence (70% of investment professionals fail to beat the market indices) simply doesn’t support the idea that us regular “Joe’s” can pick stocks well.
- Instead, I personally follow and recommend a passive investing strategy, which involves buying and consistent reallocation of index ETFs or mutual funds.
- However, if you are interested in investing online in individual stocks, I would recommend using a deep discount brokerage. The cheapest and easiest to use one that I have found is Sogotrade.com.
- @ Affiliate Marketing – For me, I don’t really consider this to be a form of investing. It is more of a type of business opportunity. There are some great affiliate programs available out there (FlexOffers, LinkJunction, etc). However, my favorite simply has to be the Amazon Affiliate Program. Why is this? Simple. You need to buy items on Amazon any way. Why not give some “love” to the site that steered you there in the first place.
- Caution – Affiliate marketing is not to be confused with multi-level marketing / business opportunities, which involve selling product while at the same time trying to add people “under you” in your network. I have participated in several of these home business opportunities and was very sorry that I did in every instance. Live and learn right!?
- @ Investing in diversified accounts – Another great option for investing in this type of account is opening up a Traditional or Roth IRA. My favorite place to do this is Vanguard, since they offer the lowest expense ratio mutual funds.
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