Monday, September 28, 2009

Best Ways to Make Serious Money Starting With a Small Investment by Alex Cadens

Quite often people think that investing is not a viable option for them because of a common misconception that investing is only worth it if you have a considerable amount of capital. I was one of those people, as I thought that investing, making money and a living out of my investment, would require for to have 500K in my bank.

However, I realized that in order to reach the goal of making money and a living out of my money it was not necessary to wait 30 years breaking my neck until I am 65 and I have reached the 500K mark. Indeed, I learned that investing and making a lot of money at it was not about how much capital you have (although it is obvious that more is better), but more about how consistent and effective you are at managing your risk.

This is really the key, and the reason why we agree to put our money in the hands of large institutions, because we presume that they are better fit to manage the risk for us than we are, and this may be right to some extent, but the fact of the matter is that you can also do a great job at it without the need for you to be an expert thus getting far better returns on your investment.

Nonetheless, it is not about jumping into the markets to see if you get lucky, it is about being prepared, because remember, you are not an expert, but you sure need to perform like one. The question is, how?

Simple, you have to learn how to manage your investment yourself, and this is something you can easily achieve by turning to good educational resources and reliable trading tools, both of which will provide you with the ideal mix of know-how and accurate real time analysis to make your investment so profitable that you will need only a small amount of money to start making a lot of it.

Consider for a moment that if you achieve a 20% monthly return on your investment, an initial investment of $200 could turn into $13,249.47 after only 24 months. So you see, you can make serious money with just a little of it and without being reckless; all you will need to make serious money with your investment is know-how and/or a solid investing toolbox, and of course time, which is why starting sooner is key.

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