If you believe that you need a lot of money to make a lot of money, then think again.
It turns out that there are all kinds of tools and tricks you can use on financial markets to turn a small $1,000 into something much more substantial.
Check out some of the following ideas:
Invest In A Growth Stock ETF
“Growth stocks” are a category of equities where the companies behind them are poised to take over the market. In the noughties, for instance, Google was one of the most successful firms in this category. In the last decade, Netflix has been something of a growth stock.
Most growth stocks are backed by companies trying to push the technological frontier. Usually, they’re in the tech sector, but not always. Their shares don’t pay a dividend because they reinvest all their profits into the business. Instead, they rely on future sales projections to drive the value of their equity higher, encouraging more investors to enter the market.
A growth stock ETF is a product that you can buy with minimal money upfront that allows you to buy a stake in a range of high-growth companies. Returns are likely to be excellent, especially if you buy at a time when the economy looks good.
Start Trading CFDs
CFD or contract for difference is a type of tool that allows you to speculate on the value of currencies on the forex market.
What’s interesting about CFD trading is that you don’t have to meet the full cost of the underlying asset. Instead, you effectively borrow at the margin, allowing you to amplify your gains.
Just be warned, if you lose money, your losses will increase too, so this is a risky investment decision.
Start Peer-To-Peer Lending
Many people who need money can’t go to the bank to get it. For this reason, they turn to a variety of online peer-to-peer lending sites to get the finance that they need.
What’s smart about these sites is that they pool the money that they lend and spread the risk. Bits of the funds you deposit with these online agencies go to dozens, perhaps hundreds of people, most of whom will pay you back.
The result is a hassle-free service that offers high returns. You just lend out your capital on a rolling basis and get a nice overall return. The lending platform deals with all of the admin and defaulting borrowers.
Many people who use platforms like these regularly earn profits in the region of 10 percent.
Predict The Next Recession
The current expansion in most western economies is now more than ten years old, thus making it the longest-running in history. That’s got many economists and investors worried: surely the next crash is just around the corner?
If you can successfully predict the next stock market crash, you could potentially make a lot of money very fast.
By selling now while the market is at an all-time high and then buying in the trough of the crash, you could make off with a small fortune.
What are you doing to grow your money fast?