This is a guest post from Bill Achola he is a financial publisher who owns a fast-growing, dynamic and innovative investment blog that empowers investors to make the right decision. To see action on how you can invest in your future, follow him at his Google Plus Page. (and maybe learn to earn some profit from your investment while you’re at it). Please let me know if you would like to guest post on MMYW!
What would you do if you suddenly came into a lot of money? According to most young adults, they would use it to pay down their debts. But what about you? What would you do? Well, you don’t have to wonder any longer. You don’t need to always be looking for side hustle ideas to make more money. I will tell you about my $10,000 investment plan and how you can use it to avoid the worst mistakes when trying to make more money.
What You Need to Be Concerned With
When I decided to take control of my finances by investing $10,000, I kept thinking over some ideas and I came up with one that I liked. I was obsessed with it and I decided that the best way to implement it was to start caring about what the market wants. After all, market demand is what moves everything.
Once I decided to implement my plan, the first step I took was researching it to determine how profitable it could be. I used customer research techniques to determine demand and validate my idea. Only after my research had validated it did I decide to put my plan into action.
Why Stock Picking is Almost a Losing Game
There are many stock pickers who are always bragging about their choices and how they were able to double their investments in just a few months. Or they are talking about something called “dividend growth investing”. Unfortunately, behind the hype, these so-called stock picking gurus cannot confirm the results they are getting.
Why does stock picking not work? In short: the Internet and the spread of information technology. Since all of your competitors have access to the same information that you have, and at the same time, you have no edge over the millions of other market participants who are trying to pick the same winning stocks that you are.
Also, part of the way stock picking works is to find “undervalued” stocks. But all the information that is available about a stock is already factored into its market price. So what is the best way to invest your $10,000?
My Plan to Invest in Gold and Silver
What are the benefits of investing in precious metals such as gold and silver? Basically, these precious metals hold their value better over time than virtually any other investment asset. They are immune to the loss of value due to inflation because these are scarce assets and thus, will always enjoy high prices in the market when you decide to liquidate your holdings. Gold and silver also have a lot of practical uses in the industrial sector so there will always be demand for it.
In addition, they do well when the stock market goes down, as it periodically does. The reason for this is that when the prices of stocks go down, investors sell and then put their money into safer assets such as gold and silver. Of course, this does not mean that you should put all your money into gold and silver but investing in precious metals is an important part of any investment portfolio.
Over To You
Thank you for reading my story, and I hope that it was useful to you. Let me know what you think. How about you? Do you have investment ideas and plans? If you think that someone could use the tips here, feel free to share my story with your friends. I urge you to do so. This story just might help someone make the right investment decision, or avoid making a huge financial mistake.