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5 Items to Consider Trading as a Novice Investor

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Elearnmarkets

In 2022, many people are seeking to gain additional streams of income. Some look to starting a small business in their spare time, with a view to working for themselves as the business grows. Other tech-savvy people may decide to design their own app using advanced coding skills to create a product that has mass market appeal and generates a continuous stream of revenue. Drop shipping, for example, has become an ideal start-up for entrepreneurs looking to generate income with minimal financial outlay. 

However, for many people, the idea of generating a persistent income by trading in various commodities, assets, and stocks is one that sounds highly attractive. It should be recognized that trading any form of stock is not without risk, as a multitude of factors can cause stocks and shares to rise or reduce in value. For beginner traders looking to trade, the following five examples may be of benefit.

1. Gold 

Trading in gold can be a popular choice for people who are relatively new to the world of trading. This is because gold tends to be low in terms of its volatility (i.e., it is a very stable form of trading). While it is a stable form of trading, it is also demonstrated to rise in value over longer periods of time. This can make it a perfect option for new investors who want to seek a good return on their initial investment over the long term with lower risk than in other forms of trading. 

Today, with inflation taking hold in many countries around the world and with the conflict in Ukraine causing instability in some commodity markets, gold is increasingly being used to diversify trading portfolios. In short, for any investor, having gold in their portfolio is a wise long-term strategy.

2. NFTs 

Non-fungible-tokens (NFTs) are the complete opposite of the market for gold. They represent a new way to trade and the potential to make significant profits in a short period of time. NFTs commonly take the form of works of digital art or music, as can be found on sites such as okx where they can be freely traded. 

NFTs can also be a good option for tech-savvy investors who are in tune with current trends in the market. As a beginner investor, it makes sense to invest small sums into these markets and regularly monitor the prices due to the rapid and large fluctuations that can take place in this form of trading.

3. The property markets 

Another option to consider for new investors is the property market. It should be understood that significant sums of capital are required to invest effectively in this market. However, it can represent a good choice for new investors who have built wealth over several years from employment and are looking to create a portfolio of properties for investment purposes. 

Owning properties is a relatively stable form of investment, and it is also one that has the potential to return regular income. Many property portfolio investors rent out their buildings to business or residential tenants. This guarantees a continuous supply of income, which can be used to fund other investment opportunities. 

4. Artworks

Beginner investors normally avoid looking to the world of art for their investments. This is because it requires a comprehensive degree of knowledge in the field of art. Investors must understand what makes a great work of art and how the pieces will appeal to a wider audience over time. If you have a thorough understanding of the art world, one option is to look for new artists who are breaking through into the mainstream. 

When an artist is taking the first steps in their career, their works are far less likely to sell for large amounts of money, which makes it easier to invest without risking significant capital. If a young artist then goes on to have a phenomenally successful career, their early pieces can appreciate considerably in value. 

Certain art sites can help with art trading and assist you in keeping track of upcoming artists from a range of specialties – such as sculpture, painting, and photography. Often their early works can be bought for a few hundred dollars, making it a small investment stake over the long term. 

If you do not have a deep knowledge of the art industry, there is another investment option in this field. A growing trend is to invest in shares of great and established artists’ works. Rather than buy the piece outright, you buy a small stake in a particular piece.

5. Modern sports cars

If you have a love and an in-depth knowledge of cars, then making investments in this sector could be a viable option, even for beginner investors. While most investors will not have the enormous sums of money needed to buy a modern or classic supercar (vehicles such as the McLaren F1 now sell for tens of millions of dollars due to their rarity and appeal), it can be an option to buy recent sports cars that have gone out of production. 

You can also do our cours on TRADING MENTORSHIP PROGRAM

For example, in the 1990s, there was a wide range of Japanese performance sports cars, such as the Toyota Supra and Honda NSX. Cars such as these may no longer be in production and can still be found at a reasonable price if you are prepared to search. In addition, car fans can look at sports models in the last ten or twenty years that had small production runs but look unique or appealing today. Their rarity may help them increase significantly in value in the coming decades. 

Bottomline

Today, beginner investors have a wealth of options to consider trading in. The modern sports car market is a good idea if you have a love of fast cars, and there are several routes into the art world that need not require large sums of money. The property market offers reliable returns over the long term but is geared more toward investors with a considerable amount of money. 

The gold market is a perennial long-term favorite with inexperienced investors thanks to its low volatility and potential for steady long-term returns. Finally, the world of NFTs offers the potential for quick profits in the short term but is still relatively new, so plenty of research is necessary when going down this route. 

We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.

Happy Investing!



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