Investing is really not as complicated as some persons think it is. Haim Toledano expresses that getting started is arguably the hardest part of investing because there is a learning curve involved. Once you get the hang of it, it becomes almost second nature. But all successful investors take the time to thoroughly research possible investment opportunities before actually putting money into it. Because the truth is that investing successfully is both an art and a science.
The good thing is that investing skills can be learned and honed over time. Believe it or not, the great Warren Buffet did not become a great investor overnight. It took years of practice which involved lots of failures along the way. But he was patient enough to stick with it, and wise enough to learn from his mistakes along the way.
To get started as an investor, you must first decide what your investment goals are going to be. Do you want to invest to maximize returns? Do you want to invest just to preserve your capital and to make whatever little extra you can on top of your investment? Do you want to create a passive stream of income? The answers to these questions will help you to come up with an investment strategy that is suitable for you.
Another question you should ask yourself before you start investing is what level of risk are you willing to take in order to accomplish your goals. Investing is inherently risky but there are some types of investments that are riskier than others. This means that there is more to lose, but it also means that there is more to gain. Once you ascertain your level of risk tolerance, then you should seek to research investment options that match your risk profile.