What is Investing?

Whether done passively or actively, investing is the process of generating revenue for personal or business gain. Most commonly, investors place money in assets like stocks or real estate; however, there are several ways to invest. The New York Stock Exchange (NYSE) began in 1792 and, through multiple ups and downs, has brought us the market we know today. This overview will teach you what investing is, what it can do, who invests, and how to invest yourself. 

What Can You Do with Investing?

When you think of investing, the image that comes to mind is Stock Brokers frantically calling in trades as they watch the numbers scroll by on the screen. Stock Brokers are a large part of the investing world. They deal with the stock market every single day. They help keep the economy moving. However, there is more to investing than just stock brokers. 

With the internet, anyone can invest in the market using mobile apps. You can also invest to save for retirement or various other reasons. When starting with investing, you want to start an investment portfolio. Often, these portfolios include bonds, stocks, mutual funds, Exchange Traded Funds (ETFs), real estate, and cash equivalents. However, some people choose to invest their money in more unusual ways. One of the key parts of investing is choosing assets that will increase in value over time. Investments can be physical assets as well. One good way to invest is to buy a vacation or rental property that you can rent out. This option allows the money you used to purchase the property to bring more money back to you. Others invest in other items like cars, handbags, or even watches. Each of these items needs a lot of research to ensure they are worth purchasing and if they will bring in more money if sold later. 

How Do You Invest? How Much Does it Cost?

The way you choose to invest will depend on your goals for investing. It is possible to invest in a variety of ways. You can start investing on your own using one of the many apps available to the general public. You can hire an Investment Manager to invest your money for you, as they have more knowledge of the markets. Or you can enter the financial industry and become a stockbroker who manages stocks professionally. Here are the ways each of these options invests:

DIY Investing

If you have decided to take it upon yourself to start investing, there are several ways you can invest. You can start investing with any amount, although it is suggested you start with at least a few hundred dollars. When deciding how to invest, it is important to identify your goals. Do you want to save for retirement, a house, grow wealth, or want to learn to invest? No matter your goals, there is a way to achieve them. You can open an account with an investment bank; that way, all your investments are in one location. These accounts may vary on the amount needed to open them. 

Consider opening an IRA, either Traditional, Roth, or rollover, for retirement. These accounts will build compound interest on the money you invest into them. 

For trading, you can open a brokerage account. You will choose your investment based on risk, time, and involvement level. Once you decide, you will frequently place your trades and check in on your investments. 

You can check out apps like Fidelity, Merrill, JP Morgan, Acorns, ETrade, or Ally Invest for more or complete control over your investments. Most of these apps are free and do not charge you for your trades. Some may require a small monthly fee. 

Investment Manager

Those who want a more passive investment approach can hire an Investment Manager. Investment managers will handle all the activities related to financial planning, investing and managing your portfolio. You can ensure your trust with these professionals as often their salary will depend on their performance in the markets. Depending on your stocks, they will likely charge you a fee for their services.

Professional Investing

To make a career out of investing, one needs to spend more time becoming financially literate. This career choice can come with experience or training. You can begin your portfolio with either of the previous methods, but you will want to look for available positions at different brokerages or investment banks. They will want an expansive portfolio to show your skill level in the markets. 

Once in a professional position like a stock broker, you will gain more expertise in buying and selling to benefit your clients. You will not be investing for yourself but for others who will pay you for those trades. You may also be working for a company to help grow its assets. Doing this does not mean you will not be able to invest for yourself; it just will not be the function of your job and will need to be done on your own time. However, there is more pressure on taking risks in these positions to keep pushing yourself further and make more money.

What Are the Benefits of Learning Investing?

Every day we go to work to bring money home. When we get paid, that money either goes to pay bills or gets put into a savings account for a rainy day. Learning to invest allows your money to grow instead of sitting idle in your account. For those who have never paid much attention to the stock market, the idea of where to begin might seem daunting. But even the most profitable and respected investors had to start at the beginning. 

When first starting with investing, you might be afraid to make your first move because you do not want to lose all of your hard-earned money. However, taking the time to learn the ins and outs of finance, investing, and the stock market can help you mitigate some of the risks of losing your money. You will learn how to make informed decisions that can lead to success in the stock market. 

In addition to understanding the stock market and learning to invest, you can outpace inflation and build wealth over time. However, investing can do more than just that. You can learn ways to become financially independent and retire early. No matter what your career goals are, learning to invest can open up several career opportunities, including working at investment firms, banks, and other large corporations. 

Read more about why you should learn to invest.

Investing Careers

You may wonder what careers await you once you are comfortable with the ins and outs of investing and finance. Any career you pursue will require more than one skill; however, financial and investing literacy can be a fantastic stepping stone for several financial jobs. Here are a few areas you can work in once you become familiar with investing. 

• Financial Analysis: This position focuses on examining historical and projected profitability. It is a data-intensive position that requires a lot of research and analysis. Those who enter this position need a strong understanding of finance and mathematics. 

• Data Science: This position will require proficiency in computer science and programming. This position deals with understanding financial marketing, financial instruments, and investment products. Those in this position will use their programming skills and analytical techniques to seek meaningful market patterns. 

• Banking: Banking is a large financial field with many positions under its umbrella. For the most part, those pursuing their career path will be working one-on-one with their clients, trying to meet and manage their financial needs. 

• FinTech: Another field that requires proficiency in computer science and programming. Those who want to pursue FinTech will be responsible for creating new technology used in the finance sector. This technology can include investing apps, banking apps, and much more. 

How to Learn Investing

Learning to invest is challenging, so you may need to take structured classes to help you succeed in your investing goals. Noble Desktop provides ways to help you find the right program to fit your needs. You can utilize the school's Classes Near Me tool to locate in-person investing classes near you if you prefer to learn face-to-face. For students who prefer a virtual learning environment, you can also utilize the tool to discover live online investing courses or check out Noble's virtual investing courses. 

Of course, enrolling in a class is a large time commitment whether you choose in-person or virtual learning. It may be difficult to fit these courses into your busy schedule; however, you should still begin learning. To fit in with your schedule, you could try on-demand investing classes. On-demand options are available for all skill levels, from those who want to learn the basics of investing to those who want to learn Python and make algorithms for trading and research. Several of these courses are introductions and are free. Others require a small fee ranging from $80 to $300 or a subscription to a particular service. All these options are prerecorded and can be accessed when you have time. 

Another great way to begin your investing learning journey is to watch video demonstrations. Noble Desktop provides several YouTube videos devoted to in-depth investing tutorials covering topics like Income statements and stock exchange. You can also search for Noble Desktop's free seminars to view courses related to investing, like Stock Market Investing Fundamentals. You may also check out financial modeling to find similar courses. 

Read the full guide on how to learn investing.

A Brief History of Investing

Now that we know more about investing let's look at where it began. Investing dates back to the Code of Hammurabi, written around 1700 BCE in Mesopotamia. Historians argue that this code includes the legal framework for investing. However, when looking at the history of investing, most historians start with the Amsterdam Stock Exchange as it is the predecessor to modern investing. 

Founded in 1602, the Amsterdam Stock Exchange operated like the current stock markets, connecting investors with investment opportunities. However, this stock exchange made the trading structure more straightforward and standardized. 

When the industrial revolution hit, more of the general population had a surplus of money, allowing them to save and invest for future needs. As a result, the New York Stock Exchange was established in 1792. The increase in money in the market fostered a need for developing an advanced banking system. Banks ended up dominating the investing world during this time. It also brought several well-known banks into existence, like JP Morgan and Goldman Sachs. 

The 20th century brought new investment theories like asset pricing concepts, portfolio theory, and risk management. By the second half of the century, people had more ways to invest, including hedge funds, venture capital, private equity, and REITs. When the internet came into the picture late in the century, it made trading and research capabilities accessible to the general public. A new market was created to include all of the new technology companies, the NASDAQ100. This is more of a weighted index than the NYSE. Currently, more countries have developed stock markets. Investors can now invest globally. 

Markets all over the world have seen prices increase and drop. However, stock markets can fluctuate and crash. Several markets have experienced a market crash. Stock markets crash when there is a sudden drop in stock prices. These can occur for multiple reasons, from economic disaster to investor panic. However, markets do typically recover from these crashes. 

Comparable Fields

The financial sector encompasses various positions requiring comprehensive knowledge of financial concepts. The field that is most similar to investing is financial analysis. Financial Analysts research the stock market to make informed decisions about the investments a company could make. Both positions require one to examine current events and market developments, making it easier to transfer from one to the other depending on career goals. 

The primary difference between these two positions is that financial analysis is data-intensive. To succeed, those who enter this field need strong mathematical and analytical skills and financial literacy. Investors can tailor their research depending on what each individual wants to accomplish. The two often work together to make well-informed decisions.

Learn Investing with Hands-on Training at Noble Desktop

Noble Desktop provides an array of Investing and Financial classes that meet various scheduling requirements and learning styles. No matter how you enroll in these courses, students will learn from expert instructors in small classes. Students may attend in-person training at Noble's Manhattan campus or remotely from anywhere. In addition to the courses, all students can retake the course within one year of completing it for no extra charge, giving them more time to hone their skills. 

For those interested in beginning their investment journey, Noble offers a short introduction course, Stock Market Investing, teaching students the fundamentals of the stock market and how to invest. Students will learn what moves the stock market and how investors value stocks. Students will understand P/E ratios and DCF analysis as they dive into different financial statements. While this course does not provide enough information to start your investing career, it does provide vital information that will help you out in your career and get you on the right path. 

Students may consider the Financial Analysts Training Program to jump-start a career in the financial sector or with investing. In the program, students work with financial modeling and valuation. As students learn basic and advanced features of Microsoft Excel, they learn to utilize the program for long-term planning, financial functions, and cash flow projection. Those interested in becoming Financial Analysts may also consider the Python for Finance Bootcamp. This course teaches how to use the Python programming language’s financial libraries to gather and manipulate financial data. Both of these courses can jump-start your career in investing!

Key Insights

• Can invest in several different ways depending on a person's goals and involvement level. 
• Investing can include trades and compound savings.
• You can invest globally. 
• You can invest individually and professionally.
• You can receive comprehensive investing training through an in-person or live online course with Noble Desktop.