An investor is a person who puts his or her money on different places (e.g. stock exchange, real estate, or precious metals) in order to make a return. Becoming an investor makes it possible to use these returns to create a significant income , and even eventually, to live without working anymore through dividends and rents collected. However, becoming a good investor is definitely not an easy thing to do. You have to be knowledgeable of the economy and above all, to know and seize opportunities when they come forward. In this article we will give some key explaining about how to become a good investor.
What you will learn here:
- The difference between an investor and a speculator
- 5 good reasons to become an investor
- 6 tips to become a successful investor
What is an investor and what differs from a speculator?
An investor is someone who places capital in the hope of getting a return. Everyone can by definition become an investor, but there are differences in size between an amateur and a professional. A good investor is someone who takes a minimal risk in the hope of getting a maximum return. He knows how to recognize good opportunities and seize them.
Two main factors differ the investor from the speculator: the time horizon and the level of risk. An investor typically has a longer time horizon than the speculator. It seeks to place its money in the long run in solid projects and companies, and to limit its risk. A speculator generally seeks to make a quick profit by taking high risks. ...CONTINUE READING