Whats the best way to make money from 2-5k in a year or two?

BlueDragon

Whats the best way to make money from 2-5k in about a year - 2 years?
investments/savings etc? im kinda new to all this
how much can you get?
willing to take high risks

Time Magazine

BlueDragon wrote: »

Whats the best way to make money from 2-5k in about a year - 2 years?
how much can you get?
willing to take high risks

How much risk are you talking about? You could put €5k on Aston Villa winning the Premiership this year. If that comes off you could retire.

What percentage of it are you willing to lose if it doesn't work?

pocketdooz

BlueDragon wrote: »

Whats the best way to make money from 2-5k in about a year - 2 years?
investments/savings etc? im kinda new to all this
how much can you get?
willing to take high risks

Stocks, but there is high risk associated with this.

Your €5,000 in an 8% account for 2 years will give you around €5,800 - before tax. That's about the best you'll get

If you get better than that you'd be doing very well - let me know if you do.

Good luck

PS - what exactly do you mean you'd be willing to take high risks? Are you willing to lose 20% of your money, 50% of your money. If so, what upside would you look for in return?

BlueDragon

ya i suppose i would be prepared to lose 50 percent of my money but there are risks in nearly everything i guess,
how much profit could i get from stocks on average?
or is it too unpridictable, i gues it would be a bad time to buy stocks at the moment due to the recession?
i suppose the money in an account for 2 years doesnt sound too bad either,
how much would you get after tax?

woodseb

the time period you are looking at it is impossible to give a sense of a average return that you may get. as economies have hit bad times it is not necessarily a bad time to invest in stocks but whether you will outperform the 8% return that you will get in the bank is hard to answer. seeing as you're willing to take risks, maybe invest in a couple of broad based funds and if the market recovers you could conceivably make 10+% pa

these are the returns of the top 50 blue chip stocks in europe of the last 10years to give you an idea of how it moves. it is down close to -23% this year though:eek:

12/31/07 3683.79 -0.36
12/29/06 3697.22 +10.39
12/30/05 3349.10 +20.70
12/31/04 2774.77 +4.30
12/31/03 2660.37 +10.50
12/31/02 2407.51 -35.05
12/31/01 3706.93 -18.66
12/29/00 4557.13 -3.91
12/31/99 4742.42 +42.83
12/31/98 3320.25 +26.07

pocketdooz

BlueDragon wrote: »

ya i suppose i would be prepared to lose 50 percent of my money but there are risks in nearly everything i guess,
how much profit could i get from stocks on average?
or is it too unpridictable, i gues it would be a bad time to buy stocks at the moment due to the recession?
i suppose the money in an account for 2 years doesnt sound too bad either,
how much would you get after tax?

DIRT is 20% so you'd get roughly €5640 after tax. Profit of €640. But bear in mind that inflation is running at close to 5% so really you'll barely be keeping up with inflation.

Do you have any debt ? If so, you're best bet would be to pay it off obviously. Any credit card debt ? Car loan ? Student loan ? etc.

2 years is a very short time horizon for investing such a small amount of money tbh

Rocket!

Spreads. In my opinion offer the greatest potential return for a small figure in such a time frame. 2-5k gives you enough room to manouver a decent enough profit due to the high leverage associated with spreads.

Then again, if your new to it all, spreads may very well be too risky.

pocketdooz

Rocket! wrote: »

Spreads. In my opinion offer the greatest potential return for a small figure in such a time frame. 2-5k gives you enough room to manouver a decent enough profit due to the high leverage associated with spreads.

Then again, if your new to it all, spreads may very well be too risky.

BlueDragon wrote: »

investments/savings etc? im kinda new to all this

OP - If you are going to look at spreads Worldspreads and Delta Index do courses where they teach you the basics. If you have a good understanding of the fundamentals then MAYBE look at this. But as Rocket says it is risky. So, it depends on your risk tolerance.





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Goodluck2me

Rocket! wrote: »

Spreads. In my opinion offer the greatest potential return for a small figure in such a time frame. 2-5k gives you enough room to manouver a decent enough profit due to the high leverage associated with spreads.

Then again, if your new to it all, spreads may very well be too risky.

another thing to note is that with spreads you may lose more than you initially invest, so be warned OP

cj.oneill

If you're looking at high risk and potential for good profits then maybe consider buying a few stocks in the following sectors:
Renewable energy - Solar (thin film in particular), Geothermal, Ocean, Wind (although wind is now a fairly mature industry without the same potential for explosive growth and with lower margins).

Some solar related stocks that may be worth exploring further are:
AMAT, ASTI, AXTI, SOL, ESLR, STP, LDK, CSIQ, ASTI.

Geothermal WGP - very speculative.

Miners supplying polymetals (Gallium, Germanium, Telluride, Indium( etc.) that will be used in next generation thin-film solar and battery technology could be a good play as these metals are very rare.
Potentials for looking into include: PCU, KGA, GCU, ELM

Molybdenum miners could be a good play - molybdenum is used for hardening e.g. steel. Supply is not keeping up with demand and demand will increase further as oil and gas explorers start looking in more extreme environments. Also good infratructure play. TC has good reserves and looking undervalued.

Water invesments probably a good idea given current and forecast situation. There are some good etf's e.g. PHO. But also desalination, leak detection, water purification etc.

Long term zinc, but there is an oversupply at present. Keep an eye on it because may start experiencing tighter supply over next 2yrs.

Agriculture equipment suppliers are a good way of playing food price and biofuels boom without investing directly in soft commodities and therefore affecting food prices - equipment manufacturers such as DE or CAT, or fertiliser companies (preferably vertically integrated one). Interesting ones (currently undergoing a bit of a pullback): AGU, MOS. A lot of potash exploration is being carried out, so there may be an oversupply a few years down the line, or the increase in cost of petrochemicals may mean demand for potash increases.

Precious metals have had a fairly substantial correction and there is huge potential for upside right now. ETF's such as GLD or SLV. Also gold or platinum miners with large reserves in stable countries. NG, AQP. There are double leveraged funds that you could look up, although you're playing with fire there.

Pharma stocks are often a good bet in turbulent times.

If you look into the above sectors with a 5-10yr outlook then you could see very good returns. A lot of it is highly speculative and high risk given current economic outlook.