Currency investing is one way to make money from dollars, euros and the like. What does it involve and how does it work? Finally, is there a better alternative?
What Is Investing?
Many people these days, especially those not involved in the financial industry, use the term ?investing? to mean many things. Generally, it is used to refer to putting some money, time or other resource down and then waiting for an unquantifiable return at some point in the future.
When it comes to financial specifics, investing is the act of putting money into something with the aim of achieving long term returns. Generally speaking, there is no intention to access the invested money quickly. It is not unusual for a person?s money to be ?locked up? for a period of ten, twenty or thirty years.
Although anyone can invest at any time, over any time horizon and in any amount (and are often given tax incentives to do so), most investments are those made by pension funds. Pension funds invest billions of dollars each and look to achieve better than (stock) market returns.
One of the most important themes with investing is to minimise risks as much as possible. This is because people?s pensions are at stake and nobody wants to work for 35 years or more and end up with nothing. This is why returns such as 5% per year might sound paltry but you must think of higher returns having been given up in return for much lower risks.
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Scott Harris -
About the Author:
Fed up of the miniscule returns on your investments?. Discover how anyone can reliably and profitably make money trading currencies without trying to get one of the rare How To Trade Currencies.
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