There are some adages of investment which have become common knowledge. Advice like “buy low, sell high” are familiar to all. So are some investment strategies. Though there are as many ways to invest as there are individual portfolios, there are a few strategies which have become “mainstream”.
These strategies are mainstream in the sense that if you didn’t know better, you’d think that they are the only logical way to approach investment. Because these strategies don’t appeal to everyone, some people never invest at all, thinking that this is the only way and it’s simply not for them. This is a shame. Investment has room for all sorts of strategies, and while there are some strategies which are inadvisable, there are many uncommon ones which work very well.
Here are three the most popular strategies:
- Forex. Forex is a way to see big investment returns in the short term. So many financial advisors recommend only investments which mature over decades. The reason for this is that these investments have limited risk. While it’s never possible to invest with complete certainty, long term investments like ETFs and Mutual Funds can provide a lot of growth over decades. But they’re no solution for those who want to start investing for the here and now. Forex accomplishes this by creating short investment opportunities: from minutes to weeks in duration. During this time, investors will wait to see if their own value predictions about linked currency pairs will come to pass. If the currencies gain or lose money according to plan, dividends will be issued in proportion to how much was invested and the amount of change that occurred.
- Real Estate. One great way for renters to start building wealth is to buy a home. Houses gain value at about 3-5% per year. By also helping their owners build wealth in the form of equity, houses are a great purchase, since no monthly payment is ever “lost”. Renters sometimes fail to realize that in the convenience of paying someone else to use their home, they are using their hard earned money to build someone else’s wealth. While many people don’t consider houses to be true investments, no personal finance plan is convenient without this savings and wealth-gaining tool in place.
- Invest For Others. Time is the most powerful element in modern investment. If humans lived 150 years, everyone could be a millionaire with little effort. But when traditional investment funds only have 30-40 years to grow, it is very difficult for most people to achieve those sorts of returns. Many parents these days are starting to begin investing on behalf of their small children. This gives these kids a couple of decades’ growth to enjoy before they’re even able to manage these funds themselves. It may not ultimately benefit those who start these funds, but it’s a great way to build wealth for others.
Methods like these are ways of breaking out of the typical investment paradigm and getting excited about investment again. There are other ways to do so. If you don’t enjoy investment, try one of these out. It may help you to become a great investor.