Business

Investment Ideas That Won’t Break Your Bank

Investing can be somewhat of a boogeyman if you are not willing to take some serious risks. People often decide to stay away from such risks to avoid losing money. Still, there are ways to try and navigate the rough waters of investing without spending more than you can afford. Making your money work for you is everyone’s dream, but dreaming big isn’t an option for just anyone. Start small with investment ideas which will bring you some money without completely desolating your budget. If you don’t know where to start, we have a few ideas for you.

Forex

The Foreign exchange market (Forex) is one of the fastest growing markets in the world. At first, Forex was a market for big corporations and banks only. With the arrival of a little something called the Internet, buying and selling currencies became available even for small investors through online brokerage accounts.

The combination of high leverage (up to 250:1) and extreme liquidity makes this market the ideal place for most of the traders. It takes only couple of minutes to open and close the positions, but they can be held for months, too. The prices are determined depending on the supply and demand. Big players, such as central banks, aren’t allowed to manipulate the prices.

There are three ways for you to trade forex: spot market, forwards market and futures market. In spot market the currencies are being sold and bought according to current price. The other two ways are dealing with claims to a currency type, price per unit and a date for settlement. The contracts are binding, but they can be bought and sold before the expirations. One of the great things about the currency market is that it is open 24 hours a day, so if you have another job, it won’t be difficult to manage.

Penny Stocks

Penny stocks are small cap, low priced stocks (anything under $5). The penny stocks market is often described as the Wild West of the Wall Street, mostly due to the perception of it as the market where anything goes. They owe their fame to small investments and big profits. There is still risk of losing money. It’s important to understand penny stocks, in order to avoid major losses. Lack of information available to public, no minimum standards, lack of history and liquidity problems can all affect the risk increase.

You should be well informed before making purchase decisions. It is possible to buy and sell penny stocks through your usual stockbroker. Penny stocks are prone to volatility, so there are chances, in spite of all the risks, to make serious profit with relatively small investments. There are a few things you can do to increase the chances of doing well, such as focusing on stocks with high volume; sell quickly; don’t believe everything you hear from the company management and don’t sell short.

Binary Options

Binary options are those types of options where the traders take yes or no positions on the price of financial assets. We’re talking about an all or nothing game. Still, binary options are one of the fastest and easiest ways to trade. The essence is that you are not taking ownership over some asset, but trying to predict the movement of that asset. In the process, you should pick an asset and predict whether it will go up or down in price.

Your broker will calculate the percentages, and you’ll know exactly how much you can gain and when that will happen. You can trade commodities, stocks, currencies, pairs and indices. It is possible to trade on an international level without even changing brokers or websites. The types of binary options are call/put trade (predicting the ups and downs), one touch trade (target price) and the boundary trade (outside or inside the price range).

Try your luck, but use your mind too. We wish you good fortune in swimming with the sharks.

Author Bio

Nate M. Vickery is a business and financial consultant from Sydney, Australia. In his spare time he likes to blog and share some of his insights and experience.

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