How To Get The Highest Return For The Least Amount Of Money

How To Get The Highest Return For The Least Amount Of Money

High returns are all about percentage gains. Whenever you talk to someone who is involved in investing, never be concerned about how much actual money they are making with their methods.

Instead you should be more concerned with the rate of return or percentage return of their methods.

If someone is making $10,000 per month but they need $200,000 to do it, that translates into a monthly return of 5%.

On the other hand if someone is making $10,000 per month but they only need $10,000 to do it, then that is a return of 100%.

You would care about this percentage more because with this (100% return) method you could take that $200,000 and make $200,000 per month.

Hopefully this gives you an idea of why percentages are more important than actual dollar amounts. That being said I would like to give you some examples of high return investments. These strategies have the potential to make 100% or more each time you make an investment.

Futures Trading

Futures trading is basically a contract between a buyer and seller to purchase a certain quantity of an (underlying) asset at a certain price up to a certain time.

In the past this asset has represented commodities like corn, oil, wheat, etc. but nowadays futures contracts are traded on stocks, stock indices and even currencies.

Futures are traded almost 24 hrs a day!

There is extreme leverage involved in futures trading and (with the right futures trade) it is possible to double your money in a matter of hours.

Options Trading

Like futures trading options trading is a contract between a seller and a buyer to purchase an underlying asset at a certain price up until a certain time.

Like futures, options trading involves a lot of leverage ($500 can allow you to control 100 shares of a $600 stock) but differs in that is is not traded 24hrs a day.

Forex Trading

FOREX or foreign exchange currency trading is the buying and selling of foreign currencies.

This trading strategy aims to take advantage of the exchange rates between foreign currencies.

An example would be the Euro dollar and the US dollar. Everyone knows about the crisis happening in Europe right now and the high volatility this has caused in markets.

FOREX traders take advantage of this by buying the Euro one day, then trading it for US dollars (and vice versa) when conditions are favorable.

Conclusion

I have done some trading in futures and have also traded stock options. Futures has a lot more leverage than options but can be very rewarding.

In my experience trading stock options has proven to be a more consistent way to make high returns with very little money.

There are many conservative trading strategies out there, you just need to pick one that goes with your personality.

I have made 300% and 400% on one options trade, but I try to go really conservative and target 20% per trade.

If I had to pick one of the above strategies to start with, I would choose options trading for sure.