Investing!  It doesn’t have to be complicated.  To help you understand the world of investment a bit better, TMI has created this simple Investing 101 Guide to allow you to make solid financial decisions.




What Is Investing?

In simple terms, investing is the process of laying out money or capital now with the intention to make more money in the future.


Why Invest?

The reasons for investing are a varied as the people investing their money.  Each investment goal is different for each individual. 

You could invest to build a financial portfolio that allows you to enjoy a rich retirement later in life.  Or you could invest because you wish to establish an inheritance for future generations or to send your kids through college.

Whatever your reason(s) for investing may be, one goal is constant with all investors: You invest with the intend to make more money with the money you already have. 


Where To Invest?

As an investor, you have various investment vehicles at your disposal.    You could consider putting money into stocks, bonds, mutual funds, ETFs (Exchange Traded Funds), real estate and other alternative investment vehicles; such as starting your own business, antiques, gems or art.

Or you could invest with our company, The Mint Investments LLC.   Our investment vehicle is global currencies predominantly.  We have been able to offer our clients solid returns on their investments, ranging from 12.34% to 17.78% annual yields, for more than eight years now.


Risks Associated With Investing?

All investments have risks, it’s the nature of the beast.  As such it is critical that you understand how your money is being invested by the broker(s) of your choice.  At TMI we offer complete transparency about your investments and we welcome an opportunity to introduce our services to you.

Even if you choose to put your money elsewhere, do not fall for common investment ploys that are clearly fraudulent and are only intended to do one thing: steal your money.


Investment Red Flag factors you should pay attention to:

  • extremely high-interest rates (anything over 20% should alarm you)
  • promises to double or triple your money (brokers have no control over the markets)
  • promises of quick returns (again, brokers have no control over the markets)
  • monthly dividend payments that sound too good to be true
  • Fast-talking salespeople who are only interested in getting your money
  • No clear and precise upfront explanation of what you can expect
  • Little or no transparency of investments and the company


Personal Note:

  • Do not invest in something that you don’t know anything about or that you don’t understand.


What Is Investing Compounding?

This investment term means that a broker will reinvest all your earnings (profits) on top of your initial investment, allowing your investment to grow exponentially.


Hypothetical Example:

Year 1:

Initial Investment: $100000

Annual Yield: 16%

Profits Earned: $16000

New Investment Balance: $116000.


Year 2:

Total Investment: $116000

Annual Yield: 14%

Profits Earned: $16240

New Investment Balance: $132240


Of course,  this example is highly simplified and doesn’t take in account trading expenses associated with your investment.  However, for illustration purposes only, your investment account would grow substantially when taking advantage of compound investing.  At TMI we always use compound investing for our clients.


What Is Investment Risk Tolerance?

Both the investor as well as the investment institution (i.e. broker) should adhere to a predetermined risk tolerance to avoid catastrophic results such as complete wipeout of an investment balance.

Risk tolerance is different for each investor and depends on the level of comfort you have with the loss of your money and how many losses you are willing to bare per day, week or month.

At TMI we have our own risk tolerance which is preset at a maximum of two percent (2%) of your account balance per trade, with a maximum daily risk of five percent (5%).    That means that when maximum risk allocations have been reached, we stop all trading activity for your account for that day .  This strict money management principle gives  you the assurance that your won’t lose your entire investment funds after just a few trades.

Knowing your own risk tolerance is important before you invest.  It avoids much anger, frustration, and stress when markets aren’t performing as expected.

Once golden rule to determine your risk tolerance is to never invest money you can not afford to lose.  Equally, never invest more money than you are willing to lose.


What Is Leverage?

Leverage is an investment term that refers to how much money an investor can borrow in order to increase the potential return of their initial investment.

In the United States the amount of money an investor can borrow from his broker to potentially increase their profit potential is limited to a ratio of 50.  That means that an investor can borrow up to 50 times his initial investment amount to trade with.


Initial investment = $100000

Maximum trading potential with a leverage of 50  = $5000000 ($100000 x 50)


In the example above, an investor would be able to trade up to a maximum of five million dollars ($5000000) despite only having an initial startup investment of one-hundred thousand dollars ($100000).

The difference between the actual investment amount and the leveraged amount would be loaned to the investor by the broker.


Advantage of Leverage:

An investor has more capital at his disposal to potentially generate a bigger ROI (Return on Investment). That’s because an investor can keep all profits generated from trading with leveraged funds (minus fees, commissions, and/or profits shared of course).


Disadvantage of Leverage:

The additional funds borrowed over and above the initial investment become a liability and increases risk.  Should an investor lose a trade, he is responsible for the total amount of money he borrowed from the company during that trade.  Borrowed funds usually must be repaid within 24 hours.


What Is a Margin Call?

An investor receives a margin call from a broker if one or more of the securities he had bought with borrowed money decreases in value past a certain point. The investor must either deposit more money in the account or sell off some of his assets.

A margin call is a broker’s demand on an investor to deposit additional money or securities so that the margin account is brought up to the minimum account maintenance level. Margin calls occur when the account value decreases to a value that is lower than the acceptable minimum margin value as calculated by the broker’s particular formula.

Margin calls are not what an investor should aim for.  A margin call may result in all trading accounts held by the investor with that broker being closed down until the investor has replaced the lost funds he borrowed.  A margin call can also result in legal action against the investor if the investor fails to replace borrowed funds within a certain period of time, which is usually 24 hours.

Some investment firms allow a leverage of 400 or more; meaning an investor can borrow up to 400 times his initial investment to place trades.

TMI limits the use of leverage to bare minimum, avoiding it completely when possible in an effort to reduce risk exposure to bare minimum.


What Is Accessibility of Funds?

Accessibility of funds simply means that you the investor can withdraw money from your investment accounts, either partial or in full, should the need arise.

At TMI we pride ourselves that withdrawing funds from your investment account is a simple process.  You the investor are in charge of your money and you have access to your funds at any time.  Simply call us or send us an email, requesting an investment withdrawal and your order will be processed within 24 hours.



As an investor it is smart to learn basic investment terms so that you may better understand the ‘language’ your broker speaks. After all, it is your money you put in his trust and you should know what he is telling you.  The better educated you are in investing, the smarter you will be at making solid investment decisions without relying solely on the advice offered by your investment company.


Additional Investment Education:

In dept investing tutorial* offered to you free of charge by Investopedia.

*When you click on the link above you will be routed to an external site not associated with The Mint Investments, LLC.


For more information about investing with TMI, please download our complimentary investment guide or contact us via phone, email or regular mail.