Investing

Investing Tricks Useful for Beginner Investors

Looking for investing tricks? Here are some of the tips and tricks for beginner investors to make their investing endeavors become more successful and profitable. We all know that if you want to accumulate money fast, you should invest and reinvest. The clue is don’t just invest and wait for the return, make sure you are making use of compound interest on your advantage. Another thing you should use is “leveraging”.

Leveraging is risky but more profitable. There are many successful and rich investors who just started using other people’s money. They borrowed money in the bank or to any other financial institutions and use the money as their investment capital. Maybe you will asked, how does leveraging works in investing?

Here is the flow;

The investor will apply for a loan. It might be a business loan that earns interest. The investor will then invest the money and make sure he will get return on investment that surpassed the interest rate of the borrowed money. Example,  he apply for a 9% per year interest rate loan. If he will invest his borrowed money that earns 15% per year, that means the investor is making 6% of the borrowed money.

Investing Tricks Useful for Beginner Investors

A beginner investor might asked investing tricks and tips for those who are already started investing. How can I make more money in stocks, mutual funds, real estate or even in business.

Stock Market Tricks

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To make more money in stocks, buy stocks at a low price and sell them when the stock prices increase. Also, follow what many stock investors are doing, they love to invest in a stocks that pays high dividends.

Mutual Fund Tricks

In investing in mutual funds, you need to know which mutual fund type is the bets for you and find the best mutual fund company that actually offers that fund type. We have equity fund, balance fund, bond fund, etc. Search for the best performing mutual funds and find out which companies is managing that fund.

Real Estate Investing Tricks

Every investment deals can use a trick. But it doesn’t mean, you’re just guessing. In real estate, leveraging will be very useful. Many real estate investors will just borrow money for the property down payment and then they sell or turn the property into a rental property. That way, if the property is sold, the investor will pay the full amount of his loan and the profit is huge.

investing tricks useful for beginners
Image Credit: Duncan Odds via Flickr CC 2.0

Most Popular Investing Tricks

The most popular investing tricks in my opinion is “leveraging”. I tried it once and I got a good results. Leveraging will only be very risky if you don’t know what you’re doing. To make leverage investing more helpful, analyze the interest rate of your loan and analyze the possible return of your investment.

Now is your time to say something about these investing tricks of InvestmentTotal.com? Share your ideas and thoughts about this topic. Share this page with other beginner investors so that they will gain extra knowledge in investing money.

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