If i have a $1000, what is the best way to build that money? How should I invest?

Question

If i have a $1000, what is the best way to build that money? How should I invest?

Answer 1

I'm going with LOAN SHARKING on this one....

Answer 2

Depends what is your knowledge level in every stage of investment. Investing with banks CD, property, Stocks, bonds,forex,options,futures. and many more. Instead of trying to build your investment why don't understand the pros and cons of each of the investment available, from there try to invest using paper money and some call it demo account or virtual trading with the capital of USD 1000. Practice yourself for at least 2 months before making your move. Always keep some capital with you no matter what investment u were to commit yourself into. Seen most people started with usd 300 and made it to usd 20k in 8months but you really got to do your homework and must be really passionate in the field of investing, why i'm saying this because most believe that this topics is so boring and they find it hard to focus on. www.Investopedia.com Nice site to start knowing some basic knowledge. Good Luck :)  

Answer 3

Generally, the younger you are the more risk you can afford to make because you have a lot of time to make up losses, assuming of course, you lost.

This said, at such a low dollar amount, you will have limited capital so the best thing to do is 1. interest bearing savings account, 2. bank CDs, 3. Mutual funds.

When you get enough capital, you can begin to take on more risky investments to make higher returns.

At about 10,000.00 you can start thinking about the more common forms of money management.

- Bank (around 3 percent.)

- Business

- Stock market, on average 7 percent annually.

- Real estate, you can buy REITS which is like buying stocks, so 7 percent annually.

- A a mutual fund will earn a little less than 7 percent after fees, however, you will not be exposed to the risk.

Answer 4

With that sort of money I would suggest Forex Trading, the major benefits of Forex Trading for you are:

No commission, this means you can trade more often

Leverage, this means your $1000 can be worth $10,000 or $100,000 on the market

24 hour investing, there is always a market open somewhere in the world

Forex Robots or Expert Advisors, these can trade for you minimising the risk to your investment.

Answer 5

That's not much, but you can get started with forex trading. If you are a newbie at trading this market, you need to open a demo trading account first.

You can do so at http://fxtrade.oanda.com. After opening a demo trading account, learn as much as you can about forex trading. You can find useful information on http://babypips.com or http://investopedia.com

After you have learned the basics of trading, then open a live account with $10 and see if you can make money with that. When you find yourself consistently profitable trading with $10, add more funds to your account.

Good luck!

http://jsforex.blogspot.com

Managed Accounts in Forex Trading

Answer 6

I would put it in the bank and not gamble with investing.