Investment 101

Hello new investors and all those who are interested, lets begin the class.

What is investing?

The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit- per Investopedia.

Since nobody teaching about investing in school or colleges, we have to self educate and join the party. Investing seems like its only for rich people who accumulated wealth from their parents and grandparents. It is simply not true. Anyone can do it, anyone can plan it and execute it. Investing simply is putting your money on something for the future growth, gain and profit, although loss can happen. Lets not complicate things.

Investing includes putting money into stocks, bonds, real state mutual funds, etc or just starting a business and many other things. As I do not pretend to know everything, I can't advise which is better. It all depends on lots of things- capital, interest, location, market, passion etc. My favorite is stocks. I do not come from business background, nor do I have lot of money to experiment everything. I am just a small player who is experimenting and seeing a low rate of success.

Investing is an intellectual, analytical and well thought out process of acting out looking at how the market is going to react in pursue of more money. It is not gambling. Gambling is simply out of hand and out of control. Although no one knows the future, unlike gambling, investing has some some rational to it. I would prefer to put my money in investing than giving it to some machine that is programmed to empty your pocket.

Those days when someone working the same job for 30 years and getting all the pension until the death are long gone. Social security and other government programs may or may not cover us by the time we are old. Investing can provide sense of security, independence and financial freedom. I do it for fun and I have a project to retire by 45 with nice passive income and freedom to do other things I love.

Happy Investing- more to follow as we go on.