Making significant money quickly through investing often involves leveraging margin (real or synthetic). Here are five high-potential strategies—each with its own risk-reward profile—that can accelerate returns when used wisely.
Best Investments to Make Money Quickly
Conventional wisdom links risk and return, but the correlation isn't always tight. Even "safe" investments carry hidden risks, while some high-reward opportunities can outperform dramatically. Below, we explore five aggressive yet legal investment approaches.
Important Note:
This isn't financial advice. These strategies carry substantial risk. Educate yourself thoroughly before proceeding.
1. Buy Penny Stocks
What They Are: Stocks trading below $5/share.
Why They’re Profitable:
- Low share price lets you buy many shares with little capital.
- Margin amplifies gains (and losses).
Example:
- Buy 500 shares of a $2 stock for $1,000.
- With 10x margin, invest $1,000 to control $10,000 in stock.
- A $1 price rise = 67% return ($666 profit).
👉 Learn more about penny stock strategies
2. Trade Equity Options
What They Are: Contracts granting the right to buy/sell stocks at set prices.
Appeal:
- Limited downside (premium cost).
- Unlimited upside potential.
Call Option Example:
- Stock at $29. Buy a $30 strike call for $1.50/share ($150 total).
- If stock hits $35 at expiration, profit = $350 (233% return).
3. Foreign Exchange (Forex)
How It Works: Trade currency pairs with high leverage.
Profit Driver:
- Small exchange rate changes = large gains due to leverage.
Example:
- Invest $650 to control $13,000 in currency (5% margin).
- A 0.75% rate change can double your investment—or wipe it out.
👉 Master Forex trading techniques
4. Futures Trading
What It Is: Contracts to buy/sell commodities/currencies at future dates.
Key Feature: Extreme leverage.
Example:
- Trade crude oil futures at $70/barrel.
- A $0.18 price move can double your margin or liquidate your position.
5. Cryptocurrency Trading (Leveraged)
Platforms Like BitMex: Offer up to 100x leverage.
Risks/Rewards:
- Small price swings = massive gains/losses.
- Liquidation risks rise with higher leverage.
Example:
- 10x leverage: $625 controls $6,250 in crypto.
- A 10% price move can 10x your investment—or trigger liquidation.
FAQs
Q: Are penny stocks reliable long-term?
A: Rarely. They’re best for short-term speculative plays due to volatility.
Q: How much should I risk in leveraged trading?
A: Never more than 5–10% of your capital. Leverage magnifies losses too.
Q: Can I practice these strategies risk-free?
A: Yes! Use paper trading accounts to simulate trades without real money.
Final Thoughts
While these methods offer rapid profit potential, they demand caution. Start small, use stop-losses, and prioritize education over impulsive trades.
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