Best Ways To Invest $1,000

A thousand dollars may not seem like a large sum of money, but  for an investor who knows what he’s doing; it is a small fortune. Unless you are looking to “invest” in a trip to Vegas or give your four-wheeled buddy an overhaul, you may find some of these investment options interesting.

The Name is Bond

This type of money-raising is used by companies and governments for public projects, activities, refinancing existing debts, etc. Although investing in bonds isn’t as exciting and satisfying as stock trade, the main advantage of bonds is safety and stability . This is especially important in bear markets. By registering online at Treasury Direct, you can buy U.S. Government bonds. They offer a low return rate, and  are virtually risk-free.

Back to the Futures

Futures are known for their ability to yield much higher leverage when compared to stock markets. For example, a $1,000 investment may control a $15,000 worth of futures contract. The downside is that your broker may ask for additional funds for margin call. In addition, futures can be used with great success by small business owners to hedge against unfavorable price movements. You as an investor can agree to take over the eventual risks, and the rewards of price fluctuation.

You Have Options

An option is a contract, and an added security that allows the investor to capitalize on the price movements of a stock or an asset without owning it. For example, you find a shareholder who agrees to sell you 100 shares valued at $20 for $22a month – and you can make an option contract worth  2$or $200 for 100 shares. If the share price increases to $30, your profit is the difference between $3,000 and $2,200, or $800 minus the option price of $200. On the other hand, if the share price drops below $20, you may choose not to finalize the purchase at any moment before the month’s period expires and you only lose the invested $200.

 Penny Stocks

In penny stock trading everything is in big numbers;as it is the only way to protect your investment from scams. Investing $1,000 in shares that are often priced at a sub-dollar value may sound like overkill, but it might just help you  exploit the two most talked-about properties of these inexpensive equities. As cheap as they are, there is a small chance that their price will drop any lower, so it has to go up.  Since they are so cheap, $1,000 will buy you plenty of diversified stocks, and it also  keeps you away from inflated ones.

Forex Forever

Foreign currency market is the largest market in the world, and its over-the-counter procedures allow every individual, company, or government to take part. It is not a centralized market, so the trade is distributed over a network of international dealers located in world’s financial centers. The profit is made by buying the currency that you believe will increase in value, and sell the one that you believe will decrease in value. The entry price is low, and$25 is enough to open a small account. This form of investment is straightforward, and easy to understand. I It is usually just a few currency pairs that are in the game.

The most important thing for any type of investment is to learn about the markets that trade in specific securities. In order to prevent many startup investors from losing their money or giving up early on, some brokerages and platforms offer test accounts where you can trade in virtual money until you get enough XP for the real deal.