Investing Advice, Investing News, Investing Tools

Actually if you think about it, the best investments for new investors is in the capital markets. This type of institutional investment is typically quite safe if you stay away from the speculative penny stocks. By avoiding those volatile penny stocks and sticking to your Googles and Walmarts and company's of this caliber your money is quite safe over the long term despite the historical ups and downs of the stock market.

Unfortunately for new investors, the stock market will appreciate by around 7% per year. That is nothing to write home about if all you have is two solitary shares of Google which at this time are worth around $800 The return in say ten years will be quite small even at 7%

This sort of institutional investing is perfect for individuals with deep pockets whose bank balance is $1 million dollars or more but terrible to think that a new investor may spend their $1000 dollars and get really not too much after 10 or even 20 years of patient waiting.

Many new investors therefore get a little more aggressive in their investment activity and I don't think that is necessarily a bad idea. It is quite true that investment with higher risk typically have a higher return too, but the risk is significant so losing ALL ones investment is sometimes a possibility. There are ways to hedge your high risk investments so the risk is significantly reduced and that is the way most new investors should travel because sitting it in the stock market for 20 years you may as well just leave it in the bank.