Is committing money to earn a financial return the same as playing for money? It must have crossed your mind if you had committed some money every month to acquire shares of any major company during four or five years previous to filing its bankruptcy.

Having tried to take some business risks cost you an arm and a leg, but if you had given it a second thought you would have committed your money to a savings account earning a 1,3 or 2,3 annual percent during that time period. Still, during that lapse of time, the Dow Jones Industrial Average scale had raised 100% its price.

Middle class property house prices had raised between 6% and 8% in that same time. Certificates gained around 6% per year. Could your possibilities to succeed be higher if you were playing at some casino or race? You may either come out naked or you may triple your pension money.

Committing money in certificates, shares and/or properties is not similar to playing for money, even when shares, certificates and property prices fluctuate suddenly. Keeping money aside at home is not the same either.

Contrasting ideas come from the following: Putting money aside is to keep your money worth the same when not being used. On the other hand, committing money for profit has to do with risking. Depending on where you put your cash, that is to say what kind of business, you’ll get more or less turnovers.

To invest is to put money in the financial market or in real estate to increase its future value. Committing your money includes shares, collecting coin, bonds, real estate, options, and future contracts; savings is usually done through a bank savings account.

Speculating is putting money in a place in which opportunities to get a financial return in blue through a determined period of time are just minimum. With this investment probabilities of getting back some money over a long period of time are really high.

Therefore, we can assure that investing and speculating are not the same; moreover, speculating is more related to gambling in which odds are against the individual that decides to invest. The risk of loosing in future contract investments area extremely high.

For each dollar earned from commercializing future contracts you loose another one. Then, why are there who invest en speculative values? The answer is very simple. If investments work as one hopes or expects, the investors will count with a substantial turnover.

Having success in investments requires knowledge about values and stocks in which one is investing as well as the risks that those values carry. Investment opportunities are very broad and the abundant information that exists in the internet may help you get more knowledge about those investment opportunities that you feel you can carry on.

The negative part that comes along with the internet is that the use of such a simple and quick that you can make investing mistakes much more easily. Without having to talk about your investing ideas to your agent o financial broker, you could end investing in low return shares and bonds, but with a higher risk of loosing it all.

Advice about investments are spread freely and easily through internet. But you should take into account that no advice is free. If you had followed the advice of a research analyst having to do with which shares to buy or sell for the 2000-2002 period you would have lost most of the capital you invested.

Many analysts recommended the buying of shares and stocks with very little information about those values, and only because the prices had dropped to a very low level. For example, selling shares and stocks suggestions over: Enron, WorldCom, and Global Crossing came only when they were already near to file for bankruptcy.

By understanding how to build a investing portfolio you could keep safe against any potential loss such as those shares and stocks coming from the mentioned companies and corporations.

  • Put money aside, commit money to earn a financial return or take a business risk?
  • Motives for committing money to earn a financial return
  • Outlay of money process
  • Kinds of outlays of money for profit

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