When you start investing, you would likely come across so many unknown terms and investing jargon and you would likely become confused & lose patience. But be wise to learn the concepts of the investment properly so that you don’t get fooled into a bad investment.
Some investment instruments are riskier than others but may bring higher than expected returns. Depending on whether you are in for the long term or looking to day trade, you should learn accordingly.
For example: Some investment instruments like Forex, Cryptocurrency have grown in popularity but are very high risk investments. These instruments have high trading volume & daily price movements which allows an investor to earn high returns in short time but if the market goes against you then you can also lose big too.
On the other hand, some stocks and commodities may not have that high volume & daily movement in comparison to forex, so the returns could be slower depending on the market movement. It’s better to learn about the risks, starting investment & time required to gain a return before investing in any of these instruments.
If you want to explore any new investment options, it is best to learn about it before getting into it.
There is lot of learning material available on Mutual Funds, Stocks & Commodities for beginners at the Nigerian Stock Exchange’s website. For Forex Trading education you can read the beginner’s guide at ForexTrading.ng.
Beginners should start by investing in Mutual Funds or Fixed Deposits as they are much safer than other investment instrument, but have slow & lower returns. Once you have some experience, you can start investing some of your capital in other investments as well.