Forex investing is probably more risky, but there is a chance to make more money.
in less time than before.
When we say "high yield," we mean "high yield that keeps the capital invested safe." With this definition, you can't invest in a new company that's just getting started. You also can't invest as a partner in a partnership or as a sole proprietor in a shoe shine shop or a stock brokerage firm.
With this last type of investment, you don't have to worry about keeping every last dollar of your money safe from the moment you put it in. It might work out great, and a dollar invested might grow to $2, $5, or even $100, but when money is invested in this way, it can be used for anything, like a sales promotion, a truck, or machinery. Your dollar or fund of dollars can't be returned because it has been put into assets that investors hope will start making money and build up over time into a fund of dollars that can be returned to them.
We're talking about investments, which, from the moment you put your money in, aim to keep each dollar safe and give you a return on each dollar. As soon as you put money into something, plans are made to get that money back to you. There is nothing better about this kind of investment than the kind where your money goes into a peanut stand that you and a partner will run.
It's a different kind of investment, that's all. If you put money into a building and loan association, you can be pretty sure that you'll get it back. This is because one of the main goals of the association is to keep your money safe at all times.
The kind of investment we're talking about is one that gives you a high return on your money. A high return is anything over 3 percent, up to 20 percent, and in some cases even more.
Aside from the fact that we are just looking at one or more types of investments, focusing on what we call "high yield investments" is a good idea. In a free enterprise, democratic economy like the one we have in the United States, the factors of production go where they can make the most money or get the most value.
The worker goes where he can make the most money. The executive leaves his company for a higher-paying job with another company. A farm is torn down and a modern shopping centre is built in its place. Capital goes where people are willing to pay the most for it, as long as the risk is about the same.
In the 1830s, when the railroad building era began, smart people with a lot of money put it into building new rail lines and buying new equipment. This was a good use of money because it made a lot of money. Since those early days, the railroads have grown up, and new ways of getting around, mostly trucks, planes, and buses, have started to compete with them. The railroads don't need as much money to grow as they used to, so they don't want to offer a high rate of return to get it.
In the early and middle 1950s, mobile homes (house trailers) were just starting to become a full-fledged industry. To get money, this industry was willing to pay a high rate of return. Later in the 1950s, this business reached a growth plateau, if only for a short time, and it could no longer pay the same rate of return as before. In 1959, 1960, and 1961, a new industry grew quickly and was willing to pay a high rate of return to attract capital. This industry made shell or pre-cut homes, which were made in parts at the factory and shipped to the owner's land in pieces. Once there, they were put together quickly and easily.
It was a new business. To grow, it needed money. Since it was new and in high demand at first, it was able to make enough money to pay back the money it needed at a good rate.
Make sure you don't risk more than you can afford to lose when you invest in stocks or Forex.
Software will help you a lot if you invest in the Forex market.
