While anyone with a marketable skill and a willingness to embrace hard work can secure a stable position of employment, for example, it takes a special kind of person to create an investment portfolio that enables them to maximise their earnings and cumulative financial return.
The reason for this is the complex nature of investment, which includes numerous derivatives, financial products and organisational structures.
From the forex market to dividend and real estate investment, there are potentially hundreds of methods through which an individual can commit their capital and generate a return.
The challenge is to select the most viable methods, which suit your philosophy and the amount of money that you have at your disposal.
Maximising Your Returns in 2014: The Key Considerations
As an aspiring investor, knowledge is a key weapon in the quest to achieve significant returns. This enables you to make informed decisions, while also heeding numerous lessons concerning derivatives and their underlying value.
One of the first things to note is that a financial products’ value is not always related to its usefulness, as alternative factors such as supply and demand remain far more relevant.
Take gold, for example, which is renowned as a reliable source of wealth and value despite its relatively impractical nature.
In contrast, silver is a material that remains far less valuable than gold despite its multiple practical uses and applications. Even though the value of silver has soared in the last decade, it is still categorised largely as an industrial metal rather than something this is high-value and precious in its nature.
This reflects the strange contradiction between individual financial products and their value, and it also underlines the need for potential investors to research their chosen market and carefully hone their decision making skills.
On a similar note, your levels of risk and opportunity as an investor can also fluctuate depending on the aspect of ownership.
While those who invest in physical commodities and products are restricted by the confines of ownership and vulnerable to fluctuating price movements.
For example, individuals who invest in derivatives such as currency have more flexibility and are often able to profit even in a depreciating market. While this type of investment may deliver more significant returns, however, it also exposes you to an enhanced level of risk over time.
The Need for Expert Help and Assistance
These are just two of the subtle challenges that novice investors face when looking to generate financial returns, which is why the art of investing capital is such a delicate one.
With this in mind, it may be worth employing the services of an investment and wealth management expert that can offer reliable advice on a host of securities and commodities.
Service providers such as Killik & Co offer a relevant case in point, as they have a wealth of experience and have also performed award winning research in the field of investment.
Have You Ever Considered Investing In Forex, precious metals, or even stocks? Share your comments below.