How and where to invest today? Practical advice

How and where to invest today? What are the best opportunities that the market offers you? How many risks do you have to take? How much can you earn?

When we try to get closer to the world of investments on the stock exchange, it is more than fair to ask questions of this kind. After all, we are investing our hard-earned savings and we certainly don’t want to squander them with wrong strategies.

What you are about to read is a complete investment guide, a guide designed for those who are taking their first steps in the world of savings, both for those who already have some experience in the world of trading.

If you want to know what it is worth investing in today, read on. You will discover all the latest news and you will also learn to know yourself as an investor, to have the opportunity to choose independently which is the best way to operate.

What will this guide do?

As we have anticipated, the one you are about to read is a 100% complete guide on how and where to invest today. Therefore we will not only deal with the best stocks and assets but also with other issues that are very closely related to the investment world. Specifically we will deal with:

  • Risk profiles: understanding how much you are willing to risk means making the right choice regarding the investments to be made. This is not a simple matter and it is precisely for this reason that we will deal with it in our guide;
  • Market trends: because things in the world of finance change very quickly and for this reason it becomes necessary to constantly update. All the information you will find in this guide is recent and updated;
  • Types of investments: today thanks to online trading we can operate on practically every type of financial market. This means that we have plenty of choices for our capital;
  • Capital to invest: because not all investments are suitable for all types of capital;
  • Strategies and techniques for the composition of the portfolio: because we need to invest with strategy and articulating our positions and not at random. Not having a good plan means having a plan to fail.

Read on, because now we will finally get to the heart of our guide.

How and where to invest today: better to start with who

We all think we know each other, especially if we have a certain age and we have perhaps also learned to identify the particularities of our character.

However, a completely different matter is to get to know each other as investors: not all investors are the same and many times we get to the market by listening to others’ advice, which however does not correspond to our personality and our propensities.

Guide on how and where to invest today

The first step in getting to know yourself as an investor is to analyze in detail how much you are willing to risk:

  1. What part of your sum are you willing to lose? The investment world is not all a bed of roses and you shouldn’t believe those who promise you incredible profits without taking risks. Determine immediately the nature of the amount you invest. Are you really willing to lose it looking for more money?
  2. How do you want to articulate your capital? What amount do you want to be sure of recovering? And with what time horizon?

Without knowing what you want to do with your capital yourself and what part of it can be destined for venture capital, it doesn’t even make sense to start investing.

The difference between guaranteed and low-return investments and investments that are very risky and with potentially very high returns is abysmal. Without starting from this point, it is impossible to go on.

The golden rule of investments: the more risks, the more you can earn

At this juncture we will also have to emphasize what is the basic rule of the investment world: to greater risks there are potentially greater gains.

Who does not risk, in the words of a famous Italian proverb, does not make a name. This means that what you need to modulate is always a compromise between risk and potential gain .

Markets are organized in such a way as to reward risk and reward safety much less.

After all, this is common sense: what is the point of investing in something more risky if it is paid like safe investments?

In the guide you are reading you will find, shortly, a list of the possible investments you can make today in order of risk and earning potential.

We will start from the less risky (and therefore from those that also have a decidedly low return), to end up on more risky markets, but which could reward more your investment.

What do you need to start investing?

There are different types of tools you could use to make investments. We will now start from the channels, or from those who are able to guarantee access to the markets:

  1. Bank: each bank offers a securities deposit that allows you to invest in this or that market. The bank, however, as will be clear in a few paragraphs, is in no way able to offer you the best in terms of instruments and commissions for your investments;
  2. Online trading platforms: who does it by himself, makes for three. And this is also true for the investment world. The best platforms for online investing guarantee you greater freedom, as well as the possibility of having professional tools for your investments.

Below you will also discover with us which are the best online brokers for your investments, regardless of your investment objectives.

What to invest today? The list of assets by type

What should be invested today? As should now be clear at this point in the discussion, giving a single answer to this question is practically impossible.

To play the role of the king in this decision is certainly the risk that you will want to run, always bearing in mind that to a greater risk correspond higher potential gains.

What to do then? Simple. Just read the guide to the assets we are going to present to you and above all take into account the fact that they are organized for risk and potential profitability.

Invest today in government bonds

Government bonds are very simple securities, which have always been used by Italian investors, precisely to protect their capital, keep it away from any risks and above all earn a little something.

But we must certainly take into account the fact that government bonds, especially if they are safe, today are not able to render what they made just a couple of decades ago.

If our grandparents had significant nominal earnings (nominal because at the time inflation also galloped in double figures), today we must be content instead of very low returns, sometimes even negative for the securities that have a very high security.

How to judge a state bond?

  • Issuer security: it is generally evaluated with a rating assigned by an external agency. The higher the rating, the more secure the title is. To understand, the states that have a very low rating have been that they could be close to bankruptcy and that therefore they could not repay the loan;
  • Deadline: this is a rule that applies to all types of investments: at a later date, there are generally greater risks, and therefore, as we will see very soon, higher yields;
  • Yield: government bonds offer a “certain profit”, in the sense that it is established in advance as a certain security offers in terms of interest. Higher yields always correspond to higher risk securities.

This is the reason why Italian bonds have higher yields than German bonds: for markets (and therefore for investors) it is more likely that Italy will not repay its debt than Germany.

The same can be said of states that have an even more staggering economic situation in the Bel Paese, to name a few, Greece and Venezuela.

Is it worth investing in government bonds today? Maybe yes maybe no. Not all of them are very sure (ask who had invested in Argentine bonds) and the race to find safe assets has pushed the returns of those TRIPLE A to the negative.

Choosing government bonds today is often a favor for banks and intermediaries, rather than for our portfolio.

Secure up to 100,000 euros, the deposit account

The deposit account is a special account that allows you to deposit a certain amount and periodically collect pre-established interest. We are actually lending money to a bank, with all that it entails.

Banks are often solid, but not always very solid and one might wonder why such an instrument ends up offering such low returns.

The trick is in the Interbank Guarantee Fund, a fund in which all European banks participate and which covers all accounts and all account holders up to € 1,000,000 each.

This means that any sum below 100,000 euros is completely guaranteed. The only risk is to see a chain default of the entire European banking sector.

In that case the catastrophe would be such as to make it useless to worry about one’s own money!

Is it worth investing in the deposit account? If you have a very low risk profile and want to get returns just above inflation, this could be the investment tool that today could be for you.

But if you don’t want to settle for crumbs, there are other types of tools that can do more for you. For this reason we advise you to continue reading.

Invest today in postal savings bonds and other postal products

Decades of lazy investments at the Post Office have created confusion for almost all small investors and small investors. It is believed that by investing in postal products, among all the interest-bearing bonds, it is possible to obtain good returns without risking practically nothing. After all, how can the Post Office fail?

In reality the question is very different, at least today, although even at the time of our grandparents it was not so convenient to invest in this type of products.

Postal savings bonds and other Poste Italiane products are safe to the extent that the Italian Republic is safe. If you find that Italian bonds are safe, you can of course also consider postal products to be safe.

Speech, however, different for convenience: the savings bonds today make less than a tenth of a percentage point (you understand correctly, less than 0.1%) and even when kept for very long periods I am unable to offer practically nothing to the saver.

Of course, it is a relatively safe product, but it would be equally safe to keep the money in the bank.

Even if you are not an investor who wants to take risks, you certainly have better solutions to invest your capital.

Stay away from the post office unless you want to see your capital depreciate without any advantage.

ETF: semi-automatic managed funds that can also be secure

ETFs are enjoying a moment of particular popularity. These are mutual funds that are managed by software, which generally replicates or the performance of a stock market index, or a basket of related securities by sector.

The ETFs are very interesting because they allow a good differentiation of the capital even if you had to choose only 1 stock to put in the portfolio. There are hundreds of ETFs listed on major global stock exchanges and even the best brokers in the world allow you to go and choose any of these securities and place it in your wallet.

Another positive note with respect to the investment instruments we have presented so far is that ETFs are products that can also be traded through CFDs, or contracts for difference, an instrument of which we will continue to talk about in the course of our guide.

CFDs – which are offered by all the best brokers in the sector – allow you to invest with leverage by multiplying trends and capital, as well as selling short and having a more optimized management of your investments.

There are excellent CFD brokers like eToro that allow you to invest through ETFs also with CFDs, choosing from very well-stocked lists and also allowing you to operate with financial leverage or with sales discovered.

Why invest in ETFs and avoid classic mutual funds

If you have entered the bank in the last 10 years and you have a – even small – nest egg aside, you will have certainly been offered this or that mutual fund, solid, secure and with very high returns.

This is a propensity of banks to sell a very lucrative product for themselves and unfortunately very inconvenient for our pockets.

Actively managed mutual funds, compared to ETFs, do indeed present several problems, which we will certainly have to take into account before making our investment choice.

The mutual funds in fact:

  1. They are enormously more expensive, which means that you will also have to pay 2% of fixed fees (plus up to 1% if the fund gains). With the returns of so-called secure stocks, it is easy to do the math. Funds are often at a loss even when their assets are gaining a little bit on the markets;
  2. They are often unclear: the law requires the creation of very detailed documents, which translate into a very precise analysis of the assets that comprise them. This does not mean that for many types of funds, unfortunately, the management company is often left free to move about;

These are therefore very unclear and very expensive tools that we advise you to avoid, regardless of what your actual investment needs may be.

How to choose the right ETF for us

There are ETFs of all kinds and they have as their underlying asset the most disparate indices or securities. Our advice is to choose taking into account not only our expectations on a given market, but also in relation to all synthetic risk indices, which must always be attached to the product.

Is it worth investing in shares today?

Let’s move on to another title that still allows you to invest with absolute freedom on practically any type of market and with returns that often exceed those of apparently more advanced instruments.

When you invest in stocks, you are actually buying a share of the company, trying to make a profit based on two directions:

  1. Dividends: part of the profits that the majority of listed companies distribute to shareholders every 3 months;
  2. Revaluation of the stock: for anyone investing in the stock market, the hope is to be able to sell the stock when it is worth more.

Brokerage platforms like 24option offer you a great deal of stocks on which to invest via CFDs. 24option is a reliable broker that respects all the conditions indicated by us.

Investing in stocks can be a good choice for different types of investors:

  1. For those with a long-term horizon: the statistics speak for themselves. Typically in a 7-year cycle the stock market tends to always grow, including crises and anti-cycles. Furthermore, choosing cassettista titles, or those that perform better over the long term, can also lower our risk profile;
  2. For those in search of short-term gains: by choosing the right actions, you can have volatility that allows you to achieve significant gains even in the short and very short period.

However, the world of equities is so vast that it allows us to accommodate all types of investors and needs.

Just remember that the gain is not guaranteed, but is rather related to what the market trends are.

Stocks through CFDs: because they could be convenient for your investment

The best brokers offer you the possibility to invest in shares also through CFD contracts. These are OTC derivative contracts which, in spite of the name, can be convenient especially for those with limited capital to invest.

Through CFDs on shares you can in fact:

  1. Spend less on commissions, especially compared to what you would spend with banks instead. Trading on foreign markets can cost up to 100 euros with a single trade. With CFDs you don’t spend instead a few cents;
  2. Investing even to the downside, which means that when the conditions are present, you can invest without problems even focusing on the fall in value of the shares;
  3. With the best brokers you have the best platforms available, which means that you will have all the tools to go and invest like professionals;
  4. You can multiply the trend thanks to financial leverage, or a tool that allows you to invest at the margin and therefore to have more capital available virtually.

Trade.com is also an excellent platform to invest in shares through CFDs. Trade.com offers you not only the possibility to choose between many titles, but also the opportunity to open a free demo account through which to test your operations.

Investing in raw materials: is it something suitable even for those taking their first steps?

Is it worth investing in raw materials today? What are the warnings for someone who is not an experienced investor and who may not have huge capital at his disposal?

There are actually a lot of opportunities in the raw materials sector even for those who are not exactly a multimillionaire, given that it is possible, through special brokers, to buy fractions of contracts, without having to pay tens of thousands of euros for a single trade.

Raw materials have always been sold with large contracts, which did not allow small savers to go and invest in this market.

Today, thanks to CFD brokers, you can just go and invest in a market that could give you really huge satisfactions.

What are the most important raw materials?

  1. Gold: it is the safe haven par excellence and the one used to protect itself from risks, especially during the countercyclical phases of the economy. Gold can also be purchased in the form of financial securities, which allows everyone to speculate on the price of metal;
  2. Silver: it is worth, even if in a minor relationship, the speech just made for gold. Silver is a metal required not only for its value as a safe haven, but also from the world of industry;
  3. Platinum, Copper and other metals: these are metals that are mainly used for industrial purposes and are in any case dealt with on the main financial markets. Also in this case the opportunities for investors are many, even in the short term;
  4. Energy: oil and gas mainly, which are the real principles of trading in commodities. You will find from the best brokers the possibility of going to invest short or long, or aiming at raising or lowering the raw materials in question;
  5. Food: food raw materials are cocoa, soy, wheat, coffee and some others of minor importance. Even in this case, speculation is possible and these raw materials can be included within each portfolio.

However, remember that raw materials are definitely not a matter for all investors. We are faced with relatively risky stocks, which can vary in price for large quantities even within the same trading day and therefore those who invest in them should necessarily prepare themselves for the so-called roller coaster, or the possibility of earning or losing big capital even in the internal of the same trading day.

Markets.com is a broker that offers you contracts for difference on all the main commodities, on which you can also invest through leverage or downwards.

Investing in Forex today: what are the opportunities?

Forex is historically the most liquid market in the world and the one that moves the most money. The market moves such large sums that no one, not even the biggest investors, can have a considerable impact on the market.

This means that those investing in Forex also invest on equal terms with millionaires, making this market the most suitable even for those who are taking their first steps.

The Forex is an average risky market, but that can offer, in relation, excellent prospects to those who decide to bet.

Investing in Forex means going to work in the currency market, or buying and selling foreign currency for speculative purposes.

Forex is not a magical market, however, as so many scams advertising would have you believe: it is a market to study carefully and that probably should not totally commit our capital.

The possibilities are many for those who want to prepare and for those who want to invest wisely.

Is it worth investing in Forex?

Yes. There are so many opportunities and as long as your risk profile is online, you can definitely conduct satisfactory operations on this specific market.

We are facing a liquid market, with good profitability and that rewards those who study. It can therefore definitely be part of your wallet and, if you wanted to risk more, you might think of also assigning it a substantial part of your capital.

If you choose to invest in Forex, remember to do it with reliable brokers, such as Markets.com, an authorized European broker that allows you to access all the major currency pairs, on very advantageous terms and also with the possibility of testing the your strategies with a free demo account .

Investing in cryptocurrencies today: has the train already passed?

The category of assets that has had the most prominence in recent months is certainly that of cryptocurrencies. Bitcoin, Ethereum, Ripple, Monero, Bitcoin Cash and many other minor cryptocurrencies have recorded gains for those who have simply invested mind-boggling.

Let us remember, however, what is the fundamental rule of finance and investment: potentially higher earnings correspond to equally high risks.

And this is the story of those who arrived late in the world of cryptocurrencies, perhaps bought at the top of prices and now find themselves with losses of up to 80% compared to the sum invested.

Cryptocurrencies are certainly a category of interesting assets, but they must be evaluated for what they are: very risky assets, which as such must be included in our portfolio.

What does this mean? It means that our advice, unless you love the highest risk, is to insert cryptocurrencies as a minimum percentage, or to invest only with a portion of our capital.

Remember also that with regard to cryptocurrencies, you can invest through CFD brokers, or through brokers that allow you to invest through contracts for difference. This is a huge advantage, because investing through classic exchanges means going to invest with very high commissions and above all on platforms that are not up to those brokers.

With all the brokers listed in this guide, you can best invest in cryptocurrencies. Choose one of eToro, 24option, Trade.com and Markets.com and test your strategies with the free demo accounts that these brokers can offer you.

One of the fundamental choices to invest today with profit: a good broker

No one would dream of doing anything without the right tools, let alone investing without having the support of top-level intermediaries.

Choosing a good broker is as important as choosing each security that will make up our portfolio.

There are a lot of brokers that operate all over the world, but how to choose the one that actually does it for us?

There are several features that you should take into consideration before investing with a particular broker:

  1. Authorizations: the broker you are going to choose must have a European license, or an authorization by one of the European public financial institutions to operate. This is an absolute guarantee for those who invest, both for capital and for the reliability of the execution of orders;
  2. Trading platform: the broker you are going to choose must offer a good solution for investment platforms. The choices in this regard are basically 2: MetaTrader or a quality proprietary platform;
  3. Available assets: as should be clear by now at this point in the discussion, you have many assets available to invest in and therefore you should prefer a broker that allows you to access the maximum number of markets. Don’t settle for the faded offer of your bank, there are brokers who can offer you all or almost all the markets we talked about during our guide;
  4. Advanced tools, such as financial leverage and short selling. They are tools that allow you greater flexibility in the composition of the portfolio. With short selling you can also invest in the reduction of a certain security and with financial leverage you can multiply the trend of the assets you choose;
  5. Costs: choose only brokers that are able to offer you low commissions. The commission can have a substantial impact on your potential earnings;

With this mini-list you have all the tools that allow you to choose in complete autonomy the broker that can do for you.

But it didn’t end here with our guide. There is still a lot to talk about and it might come in handy if you want to invest profitably today.

Investing with CFDs: because it is convenient

The best brokers of the moment are all brokers that allow you to go and invest with contracts for difference. These are contracts that replicate the performance of the underlying asset and allow further advantages compared to those that are securities purchased directly.

CFDs are higher than direct investment because:

  1. They are cheap: being Over The Counter contracts, you will pay minimum fees compared to those you would pay for the direct purchase. It’s about saving tens of euros for every single trade!
  2. They offer maximum liquidity: since you “bet” against the dealer, you can go to sell and buy at any time, without necessarily waiting for a buyer. This is a great advantage, both in the short and the long term;
  3. The brokers are better equipped: and are able to offer you platforms of the highest level, such as MetaTrader, or proprietary platforms of the highest quality;
  4. Can you sell short: do you think the stock you spotted will lose value soon? You can bet on the discount, as long as you choose a CFD broker;
  5. Financial leverage: we have already talked extensively about leverage. Remember that it is a tool that is offered only to those who invest through CFDs;

The CFD brokers are right now the best of the opportunities you have available to go to invest, be it small or large capital.

How much capital do you need to invest today?

Investing today is not just a matter for the rich and the very rich. Thanks to the arrival on the market of many brokers that are focused on small investors, you can start investing even with a few hundred euros available.

Of course, having larger sums we can go on to better articulate our investment, but nothing prevents us from operating with decidedly low amounts, making us perhaps help with the financial leverage.

Investing today is however not prohibitive for anyone and even starting with a few hundred euros can, in the medium and long term, give us very important satisfactions.

And if you have more money available, our advice is to differentiate, or to choose stocks and assets that come from different sectors and different markets. In this way you will minimize the risk, because in fact you will not be exposed to a single market, risking to lose important amounts in the event of a concentrated crisis.

Because today it is not convenient to invest in insurance and asset management

Why is it not worth investing in insurance and asset management today? Why is it the product that banks and insurance companies offer us most frequently if it is not convenient?

It is the classic case of conflict of interest between intermediaries and customers: banks and insurance companies earn incredible sums from the management of the funds and therefore push unsuspecting customers to invest very important sums within these instruments.

There are several disadvantages concerning this type of investment products:

  1. These are very expensive products: it is not uncommon to pay even more than 2% for the management, insane sum, taking into account the period of low returns that we are unfortunately crossing;
  2. Unclear products: we challenge anyone to understand in detail the operation of a specific fund or a specific unit-linked policy. We often end up willingly to lose important sums that had not been calculated, hidden in commissions and heavy taxes written in body 6;
  3. The returns are often lower than the benchmarks: you would expect a fund managed by experts to have returns above market averages. The statistics, however, tell us a different story – the funds are often below the benchmarks, which means that investing almost at random would do more.

Stay away from these products today, tomorrow and even in the most remote future!

If you’re not sure, use a demo account with virtual capital

If you still don’t feel safe to risk your capital, today you can also invest with a free demo account. This is a special account that allows you to operate with virtual capital, or with fake money to test your strategies and above all your market insights.

The free demo account allows you to learn how to invest today without risk and taking all the time you need to learn.

Conclusions: investing today, how, where, when and why

We close our guide with a brief summary. Is it worth investing today? Can we move profitably despite the uncertain period?

Of course yes. Starting from this guide you can begin to take your first steps without any kind of fear and above all without any kind of excessive risk.

Furthermore, starting with a free demo account you amortize the risks and losses that you probably should register starting directly with real capital.

Remember the importance of choosing a good broker. Without the right tools it becomes absolutely impossible to move in equal with the professionals and you would be destined to succumb under the weight of inadequate commissions and instruments.

The world of online trading now offers investment opportunities that we could only have imagined some time ago. We carefully choose how and where to invest and we begin to make our capital pay off.

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