Nate M. Vickery reached out to me about doing a guest post on penny stocks and other types of investing. If the shoe name fits, right? He is a business consultant from Sydney, Australia. He is also an occasional investor who likes to share some of his insights and knowledge. Take it away, Nate.
The home budget is that one place where we always need some extra money. When all expenses–such as housing, food and transportation–are taken care of, what we have left may not amount to much. Making money on the side can seem like a somewhat risky move, but it is not impossible. There are some investing strategies you can try right on your own computer. There are some types of investing that are not too time-consuming, may have limited risk, and basically anyone can do them. Here are three types of investing you might try to boost your home budget.
Forex
The foreign exchange market is a great way to add some excitement to your life, besides the perk of extra money. The fast pace of this market is making it a fun way to earn some cash. In the past, trading with Forex was reserved for wealthy individuals, banks, corporations, etc., but today, anyone can do it. Basically, Forex involves purchasing and selling currencies directly from your computer through online brokerage accounts. In this market, high leverage (250:1) and deep liquidity are making the movements significant for currency traders. Do not be afraid of being confused because of the various stocks; the market revolves around eight major currencies. You should, however, know some of the market’s basic terms to make your trading experience successful (ask price, bid price, percentage in point, spreads, currency rates).
Penny Stocks
When talking about instant getting rich formulas, what usually crosses our minds are penny stocks. It may not be as easy and grandiose, but the chances of earning money are real. These low-priced stocks are sold and bought for anything under $5. You can buy and sell them via your normal stock broker on exchanges like NASDAQ and NYSE. Often, you can find penny stocks on listing services, such as Pink Sheets and OTCBB. Trading with these small-cap stocks has a potential payoff in their volatility. Many companies experience significant jumps in value (from penny stocks to power stocks, rarely), so your purchased stock can rise from $0.08 to $8 in a matter of weeks. You should keep in mind that there are some risks involved, such as poor reporting standards and low liquidity. Knowing this “scary side” of penny stock trading will help you pick the right stocks and be a successful trader.
Binary Options
You will probably hear somewhere that binary options are “all or nothing” trading, but do not let that intimidate you. That only means that a trader has to take a yes or no position on the price of some financial asset. And if the result is nothing, it is still possible to sell the expired option for a certain payout. Think about binary option trading as a bet or prediction game, where you have to guess the financial movement of some asset. Before you decide for the prediction, you will get all the necessary information (how much money you can get, the time when the money will appear, etc.). With binaries you can trade with indices, stocks, currencies, pairs and commodities. International trade is also possible, and you do not even have to change your broker. When trading with binaries, you have to remember that there are timeframes for which you have to decide. If you don’t have enough time to wait for an hour or longer, you can decide for 60 second or 5 minute options.
No matter which of these types of investing you choose, if you get familiar with the terms, risks and possible gains, you will have more chances to earn money.
Note from Penny: This information does not constitute personal financial advice, but it is worthwhile information to mull over. Thanks, Nate!
So Tell Me…Are you involved with any of these types of investing? Any success stories or horror stories you’d care to share?
Thank you Penny for having me featured on your lovely blog.
Any time! Thanks for writing and sharing great content!
These are the types of investments that I usually get SPAM about. (Especially binary options.) So I have always put these types of investments in the “risky and someones going to take advantage of me” basket. But they are all legitimate investment options however I think they require more a lot more research, skill and knowledge and have a higher risk factor than some of the easier investing options e.g index funds.
100% yes. I agree so much. That’s why I opted for the guest post. This is still the deep-end of the pool for me!