i wish to invest $2000. what is my best bet for the best return? stocks? forex? futures? CDs? mutual funds?

Question

i am currently a college student, and wish to invest my hard earned $2000 in something worthwhile. i have already tried forex and have lost about $1500. right now, i am so unsure of what to invest. i am so dissapointed in forex. why, you ask am i so eager to invest my money? i wish to open a business in the near future. however, i have very little money. I need a good investment, so when the time comes i will have everything i need. so what's my best bet? future? stocks? forex? mutual funds?

thanks for helping me out. greatly appreciated.

Answer 1

Washington Mutual offers an online savings and free checking account with 6% interest on your savings account. Go to their website to see if you are eligible. (https://online.wamu.com/direct/apply/page/StartApplication?appType=FC). It might be down to 5% now, it was 6% when I opened mine.
You need a valid state issued ID and I think that's about all. Your money remains liquid so you can get it out immediately if you ever need to and there are no significant minimums for either account, to the best of my knowledge.
You can also do a web search for online banking offering 5% or higher interest, but be wary. I like WaMu because we have local branches where I can make deposits and withdrawals.
Good luck!

Answer 2

I would either buy a mutual fund that tracks an index, or learn to invest.

Because the amount is small you may be inclined to put it at increased risk to get a better return. When you can sell stocks, then you will be ready to buy your first stock. You would not want to learn the gas pedal before the brake. Many people do not realize you make money only when you sell. So when you can look at a stock and say I want to sell that, you are ready.

The reason you lost this amount of money at forex is your not useing risk management. You need staying power and statistics on your side. Consider a slot machine that pays 3 out of 4 pulls. Pretty good, but even with a magic slot machine if you put too much in, like all your money you will still lose everything.

Lastly risk and gambling have a place in investing. If you needed a kidney and live in the USA without insurance you may want to risk your 2000 on the chance even 1:100 because your life is that important to you. Even more important than money.

Answer 3

You have to learn to balance risk versus reward. Trying forex suggests you have a high tolerance for risk, but you have seen that the downside of risk is a lack of reward. However, CD's won't grow enough for you, so you'll be frustrated with that. I would join an investing club (www.better-investing.org) and learn how to research and invest in stocks. You'll meet people who have resources and may be seeking to invest in company, possibly your future company, so the relationships you make will be worthwhile, too. In the meantime, you can park your money short-term in an interest-bearing account, possibly a short-term CD, until you decide what to do with it. Also, you can open an account with Charles Schwab or another discount broker and make a good return just on their money market funds, with no risk and no limits on withdrawals.

Answer 4

If you plan to open a business in the near future, your investment term would be short. Don't invest long term.

If you are good at picking stocks (this is a huge "if"), you can try day trading. When the market is volitile, you can ride the way up and down with well timed trades. Trade stocks that move up and down with the market as a whole. Be warned, this is very risky.

Another option would be to leverage your investment through borrowing - margin account or home equity. Again, this is risky.

There are no easy answers to short term / high return investments. No balls, no glory.

Answer 5

Investments in the stock market almost always make money in the long term, but if you need the money short term (within 3 years) you shouldn't get getting NEAR the stock market. Go for something liquid like a 6-month CD or a savings account; you won't make much, but the money will be there when you need it.

Answer 6

If you want the money to start a business then you really need to make sure you dont lose money. A CD or a money market account would be fine. Paypal will pay you 5%... I would say if you have 10 years to wait then a mutual fund or stock would make you more but you could also lose half of it in the short term.

Answer 7

Venture Capital for me is the best. Venture capital is a type of private equity capital typically provided by professional, institutionally-backed outside investors to new, growth businesses. Generally made as cash in exchange for shares in the investee company, venture capital investments are usually high risk, but offer the potential for above-average returns. A venture capitalist (VC) is a person who makes such investments. A venture capital fund is a pooled investment vehicle (often a partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.
www.venturemaxint.net. Let me know if you interested. You may free sign up from referral link

Answer 8

ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% - 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read.

Answer 9

Stocks in Metal Storm.
http://www.metalstorm.com/

Answer 10

I think the best investment with no risk is to deposit in some banks in the Philippines that gives hi yielding cd's