How to Make Your Dollar Grow Fast?

by Sean Bryant on August 25, 2016
This post may contain affiliate links. Please read my disclosure for more information.

There are various methods of investment to make your dollar grow like Trading stocks and Equities, Commodity trading, Exchange-traded funds, Binary options, Mutual funds, Bonds, Forex trading etc. If you are looking for best ways to multiply your money quickly, you should invest in trading methods such as Forex currencies, Binary options or ETFs etc. because these have better liquidity and offer faster returns compared to other modes of investment. While commodities like gold and silver can be used for hedging against market fluctuations, Securities and Bonds offer fixed and consistent returns in terms of rate of interest but their capital appreciation is not that great. Hence you should opt for faster trading methods like Day trading with stocks, leveraging with Forex currency pairs or trading Binary options and ETFs.

Forex Trading:

Forex is one of the biggest financial markets with very excellent liquidity and daily trade volumes often go beyond $5 Trillion. It is a very fast-paced market where retail investors can make money quickly by executing their trades in online trading platforms. Also the market is open on 24-hour basis for 5 days a week, which allows traders to place their trades anytime during the day. Forex trading involves exchanging one currency for another and making profits based on the difference in exchange rate between the two currencies. Forex traders look for brokers who offer tighter spreads, so that they can make good profits for small movements in market prices. The spread represents the difference between the bid-price and ask-price. Smaller spreads are always good for investors since they can make profits for even smaller change in exchange rates. Another important advantage of forex trading is the support for leveraging. Leveraging involves trading huge positions by using borrowed funds from the Forex brokers. For example, if you have $1000 in your trading account, you can trade for positions up to $200,000 by using a leveraging option of 200:1. In this way, if your trade is successful then your profits will also get multiplied that many times. But margin-based trading can be risky for beginners because if you lose the trade, it can lead to bankruptcy and closure of your trading accounts. Forex trading volumes have increased heavily in recent years since many retail investors have started trading with help of online platforms. In online platforms, you can execute the orders instantly and the commissions are also very less. Most forex trading platforms also offer support for short-selling which is another easy way to gain higher profits.

Exchange-Traded Funds:

Exchange-traded funds are securities which track the movement of other underlying assets such as bonds, commodities, index funds and mutual funds. Exchange-traded funds have better liquidity and returns on investment compared to mutual funds. ETFs are traded in stock exchanges similar to traditional stocks and can be sold or purchased on the same day. Their operational costs are much lower compared to mutual funds and they also offer increased transparency, higher tax-efficiency and support for flexible intra-day trading. You can also use leveraging options with ETFs in order to increase your profit margin by several times. ETF also provides short-selling option for retail investors and you can make money by borrowing securities from your broker and short-sell them in market for higher margins.

Binary options:

Binary options are one the easiest ways for beginners to multiply their capital since it offers payouts as high as 80% of your initial investment. Binary options involve making profits by speculating the price movement of underlying assets. Also called as digital options, there are two possible outcomes for each trade in binary options. If the trader speculates the price movement correctly and the option is ‘in-the-money’, he can gain up to 80% profits, but if the speculation is wrong then he will lose the entire amount invested for that particular trade. Since the risk/reward profile is higher and the trades can be executed easily through online platforms, binary options are gaining popularity among novice investors. It does not require in-depth market knowledge or understanding of technical indicators like other forms of trading. Also beginners can make use of social trading platforms to copy the successful trades of other experienced investors. If you really want to make money quickly with binary options, you should follow efficient trading strategies like Straddle strategy, Risk-reversal strategy, correction strategy, hedging strategy etc. and make use of technical indicators to accurately predict the market trends.

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Sean Bryant

Sean Bryant created OneSmartDollar.com in 2011 to help pass along his knowledge of finance and economics to others. After graduating from the University of Iowa with a degree in economics he worked as a construction superintendent before jumping into the world of finance. Sean has worked on the trade desk for a commodities brokerage firm, he was a project manager for an investment research company and was a CDO analyst at a big bank. That being said he brings a good understanding of the finance field to the One Smart Dollar community. When not working Sean and his wife are avid world travelers. He enjoys spending time with his two kids and dog Charlie.

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