There are so many different investment strategies, investment options, investment jargon, and investment ideas that a novice investor can become confused and discouraged before even getting started. throw. Before an individual can embark on investment strategies for beginners, I think it is important to define what investing actually is and the benefits of investing appropriately and strategically. An investment is any vehicle in which funds can be placed with the expectation that it will generate a positive income. and/or preserve or increase its value. With this definition in mind, it is important to find the best investment that will generate positive income (or maintain its value) and that involves a level of risk that you are comfortable with. There are many different investments that an individual can choose to invest funds. Securities are stocks, bonds, options, futures and swaps. Stocks represent ownership and can range from very risky stocks (penny stocks) to relatively safe dividend stocks. Choosing the right stocks to invest in may seem like a complicated process, but to simplify it, there is a golden rule that an investor can implement to get started: “select the investment vehicles that offer the highest return for the level of risk you "Bonds are publicly traded debt securities through which companies borrow money from investors and agree to periodically pay a fixed amount of interest and the principal amount at the time of maturity. The appeal of bonds for many investors is that they are considered a "less risky" investment than stocks. Investors who are risk averse tend to formulate an investment portfolio heavily invested in. bonds and other relatively safe assets Mutual funds are very... middle of paper ......used to invest funds with the expectation of generating positive income and/or preserving or increasing. its value. While preserving funds may not be as exciting as earning large returns or investments, it is important to recognize its importance. It is certainly better to maintain value than to lose value, so it is important to choose investments that offer the best possibility of maintaining value (relatively safe investments). Remember, when choosing an investment, a good starting point is to select investments that offer the highest return for the risk you are comfortable with. Understanding these terms and the investment instruments available is a good starting point for the novice investor. Don't rush the process, but become as informed as possible, and you'll be more likely to realize what it means to own an investment: positive returns..