If you have some cash to spare, then you should consider using it as capital and venture into the trade markets. With the right guidance, a mere $1,000 could earn you over 100 percent profit margins or more within a year.
There are numerous ways to make an extra buck through trading, and we will expound on a few great options to consider. A fact to remember is that there are enough goodies to go around. You just need to find an opportunity that rhymes with your needs and objectives.
Here are the top ways to make money through trading:
1. Currency Trading
As an investor, you can trade just about any currency from anywhere in the world through foreign exchange. To get started, you need to have enough startup capital ranging between $100 to $2000. However, you’ll have more chances of thriving if you have at least $5000.
Most trades involve taking a speculative risk, and Foreign exchange is not an exception. In this case, your bet is on the possibility of the value of one currency increasing comparatively to another.
Currencies are priced and traded in pairs, so there are two ways of making profits. First, you can hope that the quoted value of the counter currency will appreciate. You will also enjoy a good payday if the value of the base currency decreases.
2. Trade Commodities
Trading valuable commodities such as silver or gold, offer an outstanding opportunity to make high returns. This is the case, especially if all the fundamentals of economics signs show a possibility of these commodities appreciating over the coming years.
The rule of thumb is that prices increase when supply decreases. This is irrespective of whether you are trading energy, metals or agriculture commodities. You can find great platforms that allow you to exchange your assets through future contracts.
In short, you need to bet on the odds working in your favor in a pre-arranged agreement where the buyer purchases a particular quantity of your commodity at a specific price in the future. To start trading commodities, you need about $2,500 to $5,000.
3. Tap Into Stock Markets
Stock markets are not ideal for the faint-hearted. You need to understand the various market forces to thrive or at least reduce the chances of making regrettable moves. Before getting started, consider educating yourself about how things work. You also have the choice of seeking the expertise of a broker.
For anyone seeking to make money fast and possibly enjoy a big payday in hours, days, or weeks, the penny stocks markets are more appealing than buying regular stocks. You can start with anything between $200 to $2,000, depending on your goals and financial means.
In summary, trading can help you generate profits through a range of ways. However, some methods triumph over others, and it’s critical to focus on speed. Even though buy-hold strategies work for some people, they may not serve your best interests if you want to invest your capital for 2-5 years.