Many people are stuffing their cash in a jar and burying it in the backyard.  Others are stuffing it under mattresses and floorboards.  The question is, “What is the smart thing to do with your money right now?”  Believe it or not, now is the time to buy investments.  It can be nerve racking to put money in investments when you don’t know if you’ll have a job next month but it’s the right thing to do.

The financial market is inherently a type of roller coaster.  There are good times and bad times for the economy.  When things are tough, investments loose value.  This can be a very depressing  time for investors because they will inevitably loose money on investments that they bought when the economy was stronger.  Simple economics tell us that during tough financial times, investments can be bought at rock bottom prices.  This is the name of the game folks.  Buy low, sell high!

One particularly good investment is Oregon property.  Oregon property values have plummeted in the last year.  In many cases Oregon properties can be had for 50% of what they were selling for just two or three years ago.  Smart investors will recognize the tremendous profits to be made for those who are smart enough to buy property while it’s so cheap.

Even though you may have been hurt financially, don’t be so gun shy that you miss out on this amazing opportunity to build long term wealth.

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Investing is looking for assets with value that will be enduring and growing over time.  Investing at it’s heart is value investing, a term made famous by Warren Buffett the best value investor in the world.  He looks for companies with good fundamentals, i.e. they are inherently good companies regardless of what the stock price says.  In fact, he looks for these good quality companies with solid business models, but those which are being undervalued by the market.

Trading merely looks at the share price and tries to buy low and sell high.  Of course, that’s what everyone wants to do.  But traders do short term deals and they are looking for quick profits, and lots of them over time.

Certain markets attract more investing and some more trading.  Options for example invites mostly traders.  Mutual funds attract mostly investors.  But it’s a delicate dance, because the money managers that run mutual funds are essentially traders.

Fund managers, especially those who run growth funds, ten to be aggressive traders.  Although those investing in those funds would be considered to be investors.

The same happens in the forex market.  Most of the players in this market are traders.  Actually, thinking about forex as an investment vehicle can be a little difficult.

Even so, you can invest in the currency market through forex managed accounts.  These are essentially mutual funds dealing in foreign currencies.

The differences can be nuanced and have very fine lines.  But in any case, everyone has to decide whether they are primarily a trader or primarily and investor.

Investing is more passive while trading is more active.  Maybe you will decide to be both at different times or both at the same time.  Which one are you?

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Just make sure that if you do invest in physical gold like gold bars that you have a place to store it beforehand. But if you don’t have any way to store physical gold, you can usually buy certificates where you actually own the gold but they are stored for you in a bank vault. Also many banks allow you to store gold in their safety deposit boxes.  Exchange Traded Funds or ETFs are also another way to invest in gold without having to deal with the storage problem that gold presents. You buy them on the stock exchange like other stocks and can buy or sell whenever you want.

If you decide to make an investment in gold, it is almost always a great investment in your future. The great thing about gold is that it will almost always hold its price even during times when the market is down. Now is the perfect example as gold is near its highest price ever at over $1200 an ounce. Its high price right now may discourage some from investing but predictions still state that gold will continue to rise over the next few years. Some even say the price could reach $2000 an ounce in the next 10 years. So a small investment of a few thousand could pay big dividends in the near future when you decide to sell your gold.

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While there is no way to make sure that investing in stocks will not cause you to lose money, there is a way in which you can protect your capital.  However, it requires discipline in order for it to work.  When investing, look for an industry that you have knowledge of.  Consider an industry that you know will be able to withstand the competition in the market and one that can weather the strains of time and will still be in operation for a longer period.  These industries may include those that are related to food, banking, finance, airlines among others.  Research on these companies and learn about their overall standing.  Also, look towards its potential in the years to come to ascertain how strong the company is doing and to make sure that it can continue to operate longer.  By doing these simple steps, there is a chance that you will be able to protect your capital and increase it.  You just have to find an industry that has been there for a long time and research it.  Once you have learned of its potential, you can start investing on its shares.  Making the right investment with the right company can be the safest way that you can invest on stocks but also take into consideration an industry that you really know of.

Do not lose money.  While these may be difficult to maintain when it comes to trading, know that though you may lose some or a lot in the stock market, experience can still be the best teacher and making the right choices will come once you have the experience and the confidence in your trade.

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