You can buy futures on about 10% margin, $50,000 will buy you $500,000 in corn futures, oil futures, etc. If you guess correctly, you will make a bundle. If you guess wrong, goodbye 50k. A couple of hedge funds went belly up guessing wrong on futures. Lost billions. If they had taken the opposite position they whould have made billions. In fact they lost so much, the U S government decided to bail them out because they were afraid it would cause a financial crash.
Now here is the way you can really rack up the profits. Your position is marked to market daily, so as the value of your contract increases you can use the gains as margin to buy more. It has been done successfully in the past. You could potentially make millions on a long running position.
2007-07-06 14:20:33
·
answer #1
·
answered by Anonymous
·
1⤊
0⤋
Listen i have averaged over 100% roi for the last 6 yrs and i think with a good understanding of technical analysis you can as well. I would start by reading toni turners short term trading for beginers.
I would aslo allocate a certain portion of my portfolio to growth stocks and small cap stocks. Small caps and growth stocks provide less risk and more rewards then options (90% of options expire wortless). Once you have the basics down small caps can provide returns of 50-4000% quite consistently in the short term.
Swing trading , and using the trends as your friends are imperative for success.
W W W W W
You asking why does this guy put up W, look at stock charts, let the trend be your friend. U see the W's?
Once you master technical analysis you will be able to buy low sell high (and or short at top) and catch the moves. Since no stock moves straight up or down, this strategy minimizes risk and maximizes return. As always proper money management is imperative.
Feel free to contact me, if you need a hand grasping these concepts and require some good direction where you can learn more. I will do anything for the best answer and the 10 points. Also in addition www.stockcharts.com has a good basic stock chart school where you can become familar with wave principles and other technical indicators.
What i typically do is i swing, and if i like a company long each time i trade it, i stash a way a portion of my profits in shares and keep cash. This way i basically build free long shares by trading the moves, and of course cash profits.
Im 90% technical trader 10% fundamental
gl
2007-07-06 21:57:11
·
answer #2
·
answered by pirate w 2
·
0⤊
0⤋
Think about what it is that you want. What are your goals for this money?
Do you know anything about investing, mutual funds or the stock market?
Diversify. Do not put all your eggs in one basket. Split your money between the following types of investment:
Low Risk - High Interest Bank A/c (4% - 6% p.a.)
Medium Risk - Mutual Fund / Index Fund (8% - 12%)
High Risk - Individual Stocks / Strategies (20%+)
Investing tends to only get exciting when you make money quickly or you see the end result of a good investment over a fairly long period of time 15 - 20 years or longer.
The more risk we are prepared to take, the more we can expect to make. That is why the stock market will generally return more than a savings account.
To be successful you will need patience, discipline, and wisdom. But most importantly you need a plan and you need to define your goals.
It may prove expensive to acquire that much needed wisdom on your own. Learn by other peoples mistakes. Learn from other peoples successes. Read some books. Visit your local book store and find a book that you like and feel comfortable with.
Some of the titles I have on my bookshelf include:
One Up on Wall Street by Peter Lynch
How to make money in Stocks by William J. O’Neil (Founder of Investor’s Business Daily)
The Millionaire Next Door by Thomas J Stanley and William D Danco
Check out web sites like fool.com and yahoo finance.
Investigate trading strategies with a proven track record over 3, 5, 10, and 15 years.
Pick something that you understand, find easy to use and will help you realise your goals. Pick a strategy where you can take responsibility for your investments and be in full control of your capital.
Systems like the Stocks Monthly system are definitely worth investigating once you are up to speed with the nuts and bolts of investing.
2007-07-07 05:36:43
·
answer #3
·
answered by Anonymous
·
0⤊
0⤋
Over the long term, find stocks that steadily increase their dividend.
In a few years, your dividend each year can be more than 100% of your original investment and very safe. You can't do that with bonds. It takes patience, which nobody has.
There are other riskier ways, but this will eventually net you the biggest return. Options, and buying and selling will gain you quick returns, but some individuals have stock that currently net 3,200% dividend return every year on Original investment.
2007-07-08 02:12:37
·
answer #4
·
answered by sucka 2
·
0⤊
0⤋
I'd buy a single family home in an appreciating market for as little down as possible, fix it up and rent it out for cash (more than the amount you spent plus your monthly mortgage payments). Then keep repeating it. $50,000 should be able to leverage at least $500,000 in real estate. If the real estate appreciates just 5% in a year, it will be worth $525,000, which means that your $50,000 made $25,000 in one year, plus all your mortgages are covered by your rentals, and you're earning cash without selling the properties. As they appreciate, you can leverage more!
2007-07-07 01:51:38
·
answer #5
·
answered by Katherine W 7
·
0⤊
0⤋
This is how to play the stock market with less risk...
I came across a scanning tool that has a lot of promise. I think it is worth your while because it was able to pick the latest move in Hilton beofre the buyout announcement hit the news.
My thoughts:
Split your funds into lots of $5K. This way if any position goes bad it is only 10% of the whole amount. This system will show you when to buy and when to sell.
Get used to making money by selling...not just holding.
Spend $5K on learning..do some courses..
2007-07-06 21:34:38
·
answer #6
·
answered by Anonymous
·
0⤊
1⤋
Go whit FOREX market!!!!Trading Forex is very easy!Go to Forex.com for more info.Go to Babypips.com for learning,and open a free pracktis accu. whit cmsfx.com .I started in 2006 year whit 20K now I got 51 500. Good luck!!:)
2007-07-06 22:11:51
·
answer #7
·
answered by tony5 3
·
0⤊
1⤋