If you're a young investor entering the landscape for the first time, it's natural for things to seem daunting. After all, the global economy seems to change as frequently as the weather and even seemingly small events can create a huge ripple effect felt in other parts of the world.

Thankfully, there are countless others who have been in the same position you find yourself in now. They've successfully navigated it by understanding exactly what is going on and learning how to use it to their ultimate advantage. A number of core investment strategies for beginners go a long way towards precisely that.
 

Especially when you're beginning your investment career, you'll want to explore low-risk options first and foremost. This gives you a chance to really get a feel for how the process works without putting too much on the line. Index funds and bonds would absolutely fall under that umbrella.

More importantly, exploring low-risk options also allows you to make mistakes. Never assume the phrase "low-risk" means "no risk" because they are two entirely separate concepts and should always be treated as such. But you'll learn valuable lessons before you move up to something you're a bit more comfortable with.
 

If you had to make a list of some of the more reliable forms of investment, especially for beginners, real estate would undoubtedly be right at the top.

Barring extreme circumstances, real estate will always appreciate over time. That's simply the way the market works. Likewise, if you're able to buy into an area that has major development plans over the course of the next decade or so, you have the potential to yield major returns if you're willing to wait.

There are also ways that you can experiment with real estate as a concept. Case in point: wholesale real estate. Here, you're acting as a type of "middleman" between a buyer and a seller. You get the seller to agree to one price and the buyer to agree to another. The difference is what you're able to claim in terms of income. It can not only be lucrative, but it's also a great way to expand your network simultaneously since you have two pools of "clients" to draw from instead of just one.

Having said all of that, it's true that the real estate market is absolutely vulnerable to certain types of "mass events." This was evidenced in the early 2000s in particular. But it's almost a virtually unbeatable way for beginners to start with a proper investment strategy if they look at things from the right perspective.
 

Another key investment strategy that beginners will want to rely on has to do with diversified portfolios. Don't just put all your money directly into the stock market. Embrace index funds or bonds as outlined above. Consider real estate, especially if you have the opportunity to buy into an emerging local market early.

The logic here is that if your money is spread out across a number of different types of investments, you don't have to worry about a single point of failure quite as much as you otherwise would. If every last cent you have to invest is in the stock market and the stock market tanks, you're in serious trouble. If you're also in real estate, hopefully, your wins there will make up for some of your losses elsewhere. It's very unlikely that all of your investments would yield significant losses at the exact same time so long as you've properly diversified in advance.
 

Beginner investment professionals also need to understand that every person's risk tolerance is fundamentally different - thus, they need to act accordingly. What one person considers a "sure bet" may bring with it far too much risk for someone else's taste. That's part of the reason why, whenever someone gives you advice, even if it makes logical sense, you still need to consider the source.

Likewise, low-risk investments tend to have smaller (and slower) returns. There's absolutely nothing wrong with that - but the pace at which you're able to earn an income may end up being too slow for your liking. It all depends on your own preferences and what your goals are.

This is why, while the critical nature of being proactive about risk management should be emphasized, you should still know that everyone's definition of "risk" is unique to that person. Decide how much you're willing to risk and seek out the types of investment opportunities that rise to that threshold but that don't necessarily exceed it.

It's also worth noting that your investment strategy should be put together with an eye toward long-term growth as opposed to short-term gains. Yes, high risk equals high reward, but the inverse is also true. Sometimes, those high-risk investments just won't play out the way you'd expected, and you don't want a single loss to potentially torpedo the rest of what you're trying to accomplish.

Always remember that when it comes to investing, "slow and steady wins the race." This is why diversification is particularly important, as outlined above. All investors suffer losses and setbacks, regardless of their skill level. But if you always have long-term growth in mind, slowly but surely, your wins will begin to arc in that direction.
 

Overall, it's important to remember that success in investing isn't something that will happen overnight. Especially when you're still in the early stages, it will require a fair amount of experimentation to find the approach that best suits what you're trying to accomplish. You need to rely on insights and practical advice from those around you who have been down the same path. Slowly but surely, you will put together a foundational road map worth following.

You'll know you're headed in the right direction as you begin to navigate the investment realm with equal parts confidence and poise. You'll slowly start taking not just bigger risks but more strategic ones. Through it all, you'll be able to make the types of informed decisions you need that are properly aligned with your larger financial goals. This is an exciting position for any investment professional to be in, regardless of how long they've been focusing on their career.