If you know next to nothing, how do you deal with investing? The first thing to know about investing is, how much do you really know? If it is not much, then you will need to read a lot to educate yourself.

To be well informed, you must read the basics. Find out what a stock, bond, or mutual fund is, and what the differences are between these three financial products and their variables. Read books on financing and investing.

Talk to smart investors, watch videos and live presentations. Once you understand the differences and risks involved in investing in individual vehicles, you can move forward with confidence.

You can now proceed to the second phase of investing learning. Get some experience investing in small stocks and learn from your mistakes as well as your successes. However, find out first what type of investor you are. Here are some tips to help you find the answers.

When conducting your investment business, have a game plan and set definite goals. The answers to these questions will be valuable guides for you on your adventure of investing your funds.

o What is your investment schedule?

o In which sectors of industries are you interested in investing?

o What is the amount of funds you can safely use to invest to achieve your goals?

o Have you considered your short-term financial needs or goals?

o Do you plan to live on these investments in your retirement years?

Determine your investment style. Are you a risk taker? Or do you like constant earnings? Consider this thought, will you be able to sleep soundly at night, knowing that your investment is declining and it will take a long period of time before it increases? Or do you prefer to hand over your funds to a fund manager? Do you like minimal risks when investing your funds? Consider the type of risk taker you are, as this will help you choose the financial vehicles to invest in.

How long do you want to invest in stocks? Is it only 15 minutes a day? Or do you consider it the height of entertainment to spend 7 to 14 hours a week reviewing financial statements and debating the merits of these actions?

Carefully consider the answers to these questions. By knowing what type of investor you are, you can take advantage of your strengths and minimize the risks of the funds you are investing with.