If you have at least $1,000 in your pocket and you are scratching your head about what to do, I would recommend you to invest that amount rather than spending the money. But the question which pops up in the mind is that: Can you really turn $1000 into $3000? If yes, what are the different strategies and methods to achieve this? While there are several ways in which you can make money such as through doing odd online jobs or making through things such as affiliate marketing or email marketing, to earn money by investing just $1,000 can be more challenging and riskier. However, it will be challenging and risky if have no idea what you are doing.
Before letting you know how you can turn $1000 into $3000, there are some mindset principles which investors are required to adhere to. It is of utmost importance to move beyond scarcity mentality. Most of us live our lives having notion that there are never enough things to go around. We tend to believe that we lack enough time, cash flow, connections or opportunities which can help us grow and live life to the fullest. This is just a belief system. If you are not able to get rich or make healthy amount of extra passive income through investments into lucrative short-term investment objectives, then I would say that it’s the mindset issue than anything else. Probably you are not able to spot investment strategies. If that’s the case, this article should provide you with helping hand and inform various strategies which can help you turn $1000 into $3000 quickly.
1. Playing the stock market
Day trading is not for people with weak heart as they are required to have grit and determination. Before trying day trading, it is very important to understand different market forces which are at play. This is something which financial adviser or consultant will not recommend for amateurs. But, if you learn well, it will be the easiest way where you can quickly — within hours — make significant profits with relatively smaller investment.
There are several ways through which investors can hedge their bets while playing the stock market. Whether playing the general market or trading penny stocks, it is very important to set stop-loss limits so that significant losses can be protected. Now, if you’re an experienced trader, you would definitely understand that market makers tend to move stocks in a way which will benefit them as a result of our fear of failure or our greed. More often than not, they will push individual stock down to a price which will enhance our fear. This will eventually be beneficial for them. At the time of trading penny stocks, this gets further exaggerated. Therefore, it is very important to understand what you’re doing so that you can analyze various market forces and make strong and healthy asset appreciation gains.
2. Trading commodities
Trading of commodities such as gold and silver offer a rare opportunity. This particularly holds true when these commodities trade at lower end of 5-year range. Such measures offer strong indication of where commodities are heading. Experts believe that silver appears to be a significant hedge on inflation. Apart from this, commodities such as silver are tangible assets which people can hold onto. Fundamentals of economics tend to direct the price of commodities. If the supply dips, demand tends to rise and, as a result, the prices also increase. Any sort of disruption to supply chain can have a severe impact on prices.
Other types of commodities include metals, energy and agriculture. If you want to invest, there are exchanges such as London Metal Exchange or Chicago Mercantile Exchange, etc. Often, commodities investing means making investments in futures contracts.
It means a pre-arranged agreement to purchase specific quantity at the specific price in the future. Such contracts are leveraged, offering both big upside and potential for the significant downside. Therefore, it is very important to exercise caution.
3. Trading cryptocurrencies turn $1000 into $3000
Cryptocurrency is the hot topic right now. Despite several controversies, trading in cryptocurrency has gained prominence mainly because they have the potential to turn $1000 into $3000 or even into $5000 in a short span of time. While trading them can be quite risky, if adequate hedging is done, there is a possibility to limit losses due to poorly-timed trade. While there are several platforms offering the courses to learn trading in cryptocurrency, it is of utmost importance to educate yourself. Once you learn the intricacies of trading Bitcoin, Ether, Litecoin, etc., you can turn $1000 into $3000 with limited risk.
4. Trading options
If trading in options is your cup of tea, there are several vehicles, including FOREX and stocks. Options trading is risky and traders can lose their entire capital. However, if caution is exercised, trading in options is the most effective way which can turn $1000 into $3000. For example, most of the traders try to build positions in a stock just ~10-15 days before the company is about to release its earnings. This is because there is a lot of excitement when the company plans to publish its earnings.
5. Investing in S&P 500 index fund
Index fund is based on S&P’s 500 index and this is one of the most effective ways to manage your money. Investing in a stock fund is riskier in comparison to the bank CD or bonds. However, it’s less risky than investing in some of the individual stocks. Apart from this, S&P 500 is made up of ~500 of renowned and most profitable companies. Therefore, this is the strong option for long-term investing.
Bottomline
If you plan to double your money in a short span of time, it goes without saying that you need to take some risks. Just by putting money in safe bank products will not help you turn $1000 into $3000. Above all, it is very important to remember that you don’t have to go for riskier investments or trades. There are some high-return options available in the market.
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