How to invest $250 over one year

[peppy]

This is just an idea base only on my opinion. New traders should do their own thing because it's their own money and I don't want to be responsible for your losses.

I'm just going to go through how I made my $30000 from $250 in one years time.

The first thing a new trader must do is not put the money into anything yet. What I did was sit down with paper money and just keep track of the stocks that way. Predict what stocks will do and when you would buy and sell. At the same time, I would learn "technical analysis" which is studying charts and indicators to find bullish and bearish patterns.

Do this for about 3 months and get the hang of it. This is what I did and then I decided to sign up for a scottrade account to start trading with real money.

Here is where I usually get bad rap from other stock traders. I recommend putting the money into a volatile penny stock, while most traders would disagree with me and say new investors should put the money into a big board low risk stock. The reason I would say to invest in a penny stock is because you can't make much money with $250 in a big board, they are just too slow and takes a long time. In one year, I may only have $300 and thats not even guaranteed to happen. Not to mention the cost of a trade ($7.99 with my scottrade account), you would need a big gain to cover those costs with a slow big board.

After 3 months of experience watching penny stocks, you should have more than enough experience to make decisions, but ONLY invest a small amount into the penny stocks like $250, don't put in your life savings. Just invest in the safe and appealing penny stocks or momentum plays. You can double your earnings to $500 in a single day if you know when to buy and when to sell.

The big boards are for the big money, you have to have a lot of money to make money unless you are EXTREMELY lucky and a big board really takes off, otherwise expect a 20% gain at the most per year. Penny stocks can give you a 5% gain each day and a lot of times you can make a 50% gain if you do things right. If you don't know what you are doing, you will lose control and you'll go on a really bumpy roller coaster ride in terms of earnings and losses.

What I did was once I reached $10000, I through in $9000 into the big boards, so a 20% gain on $9000 would come out to be a lot more than a 20% gain off of $250. Then I put in the remaining $1000 into penny stocks.

Thats one way to think of it, throw your pennies into the penny stocks and your dollars into the big board stocks, it works more efficient that way. Throwing the big money into the safer stocks, which is where you want that kind of money being.

This is just my basic strategy, I would like to hear what other people would recommend and what worked for them as well.

Hope this helps!

[tom321]

Nice article, I have to agree with that myself as well.

[financestrategy]

hey pal
its a great article. i must say am impressed. you made a huge amount out of nothing and that too in such a short span of time.it is a very good way to earn money. even i follow the same trend, but i lacked the initial step. hopefully this will help me out.

[speculating]

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[michael.newinvestment]

"Bruno is indispensable for trading FX"