Im a collee student and I want to start investing early while Im young. I dont habe alot of money because Im a full time student w/ expenses but I can spare fifty bucks a month. Ideally, I would like to invest it in something with a high yield. I know it’s riskier, but it’s not that much money. Any advice? Thanks!
Home | Investing | Blog article: What's the best investment w/ a high yield if I can only afford $50/mo into it?
Emmy 1:05 pm on March 14, 2010 Permalink
Put it in the bank until you have more money to work with. In the meantime, try learning about the markets (stocks, forex, commodities, etc) and practice your trading strategies on demo accounts until you have a reasonable amount saved.
White Bishop 1:05 pm on March 14, 2010 Permalink
You could use the USD 50 to open a forex trading account with FXCM Micro ( http://www.forexmicrolot.com ). Browse through the FXCM Micro website to learn more about forex trading. Visit the forum and post questions if there are subject matters that you do not understand. Forex trading enables an individual to use a small amount of money to make a lot more. Below is an interview of the King of the Micro Contest winner for March 2009 ( source http://www.iqmoney.blogspot.com ) who turn USD 961 to close to USD 20,000 in one month, generating a return on investment of over 1950 % : -
Timmy once was just like you. He wanted what you wanted and dreamed of one day having all the good things life could offer.
The only difference is – He did something about it !
But you can do the same. You can start, now.
King of the Micro for March 2009, Timmy Cheng, is a native of Hong Kong who does his trading everywhere – at home, in the office, in cafes, and even in public gardens.
The King started the month with USD 961 and ended up with
USD 19714, a winning percentage increase of 1951.22% and the USD 25,000 First Prize. Please remember that past performance is not indicative of future results.
How long have you been trading forex ?
Ten years.
Do you have a favorite source for news, and technical indicators ?
For news I read the Hong Kong newspapers. For technical indicators I use http://www.dailyfx.com.hk.
Which pairs do you prefer to trade ?
The Big Three: EUR/USD, GBP/USD, USD/JPY.
How long did you hold trades, typically ?
Less than a day.
How much time did you spend trading ?
From eight to sixteen hours a day.
What’s the best overall strategy for trading ? What’s the worst ?
Every trade must begin with a clear plan and direction, and the trader must follow the plan. If there is no plan, or if the trader doesn’t follow the plan, failure is almost certain.
What do you think is your greatest weakness as a trader ?
Emotion.
What do you think of the King of the Micro competition ?
It’s a great idea. It invites competitors to match their trading skills with traders from around the world. It is a wonderful way to promote serious forex trading.
How would you judge the forex market vs. the equities market ?
In the equities market, one giant investment company can take virtual control of an area. In forex, by contrast, the sheer size and international scope of the market creates a level playing field for the trader. Also, forex goes on 24 hours a day, which is much more convenient for a trader.
How has trading changed your life ?
It has allowed me to realize substantial extra income, which has improved my quality of life.
What advice would you give to a new trader ?
Better to miss an opportunity than to make a wrong decision.
IMPORTANT :
Forex trading involves a high degree of risk. Only trade with money that you can afford to loose.
deepblue_111 1:05 pm on March 14, 2010 Permalink
Dude, it doesn’t matter how much you want to invest. The two most important rules about investing are Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. Think about that. It’s kinda difficult to get high yield in today’s environment, so your best bet would be to invest in stocks that give out higher dividends. You might want to consider stocks such as BMY, PFY, ED or DUK. Most Real Estate Investment Trust (REIT) also pay good dividends but you have to choose wisely.