Think of investing, and one of the first things to come to mind will probably be the stock market.
Trading in the stock market is a career for some people and a mere hobby for others, but it is a popular choice for many people who are looking to invest their hard-earned cash. We are all aware of the hectic nature of the stock market thanks to movies like The Wolf Of Wall Street – and while, of course, this is an exaggeration of sorts, there is still no denying that trading in stocks and shares can be competitive, stressful and extremely fast-paced. For some of us, this is precisely what attracts us to trading, and we thrive in this demanding environment. But it’s also safe to say that this type of work isn’t for everyone. If the idea of trading a deal under pressure terrifies you, you may be better off looking into other, less crazy ways to invest your cash. Here are just a few options.
Trading CFDs
Still want to be involved in the stock market in some way but don’t fancy actually buying a physical share or asset? In that case, trading a contract for difference (a CFD) could be perfect for you.
So, what exactly IS a CFD? In layman’s terms, it is a contract between you and a broker that allows you to capitalise when the underlying asset moves about the position taken. Before you jump in headfirst, however, it can be worth familiarising yourself with some cfd trading tips. The key difference between trading a CFD and trading on the stock market in the traditional way is that you never own the asset, which leaves you more freedom when trading (as you don’t have to put up the full value of the shares you are trading). There’s also a risk that you could lose more money than you initially invested so it’s really an advanced trading strategy that needs to be fully understood before putting money on the line.
Gold
We so rarely come across real, solid gold in our lives that for many of us, it seems like something that only really exists in movies or on television. However, gold is still a relevant and valuable asset today just as it was many centuries ago. It is commonly used as an asset to cover any shortfalls that may occur in other asset classes, such as the stock market. It can also come in useful in the event of a decline in the value of currency, where it protects against the resulting inflation. Many investors purchased gold during the financial crash of 2008, using it as a safeguarding means.
Real estate
Even if you don’t buy property with the intention of making an investment, you have inadvertently made one whenever you beco
me a homeowner. This is why it can be something to look into regarding investing, especially if you enjoy being involved in the property market. Of course, being a landlord doesn’t come easy, and you will need to be prepared to put a certain amount of time and effort into your role. Think carefully about the kind of property you want to invest in – do you see an apartment, a family home or commercial property being the most viable for you? You may also want to invest with like-minded individuals, especially if you are relatively new to real estate, as they can help to guide you along.
And Finally…
This article has been about alternatives to stocks and shares investing, but there are ways to invest in stocks and shares that do not rely on high pressure trading. By investing in a simple index fund or managed fund you can take advantage of the overall growth in value over time without needing to worry about the right time to buy and sell in the short term.
For more information on investing read other investing articles here on Magical Penny.
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