Are you searching for some reliable, realistic investment ideas? If so, you’re like many money-conscious adults out there who want to put their capital to work for them during a troubled global economy. As political crises surge and inflation becomes more of a threat each day, working people are doing their best to maintain their financial health.
How do they do it? Luckily, there are all sorts of techniques, some new and some old, that can help anyone maximize their return on investment. Likewise, there are strategies for all risk tolerances. Whether you enjoy the daily volatility of cryptocurrency prices or prefer the long-term appreciation of blue-chip corporate stocks, there’s an approach to suit your personal style.
Penny stocks, ETFs, precious metals, index funds, forex trading, REITs, DRIPs, and CFDs are all part of the mix for newcomers to the world of investing and trading. However, few focus on just one strategy, opting instead to combine money-making opportunities for a mix and match approach. Here are details about some of the most popular ideas among new investing enthusiasts. Keep in mind that plenty of experienced traders and money-minded entrepreneurs also use these techniques regularly.
For those who like to play the long game, blue chips are a solid bet. These securities are issued by some of the world’s most stable companies and tend to hold their value even in the worst of times. Long-term value appreciation is the big draw for blue-chip enthusiasts. Another feature that attracts attention to the niche is dividend payment. Within the blue chips is yet another elite category known as aristocrats. These select stocks have a proven history of paying increasingly higher annual dividends for at least 25 years in a row. It’s obvious why so many put their capital into nothing but the aristocrats.
Penny stocks offer new investors an excellent way to get involved in the securities markets without having to plunk down large sums of money on individual shares. There’s the added advantage that penny shares are often issued by corporations that have plenty of room to grow in value. One of the skills you’ll need to develop is knowing which penny stocks to watch on a daily basis. Fortunately, you can follow a reliable watch list that ranks the top penny shares. In a way, this niche of the trading marketplace operates in a different way than traditional sectors. With share prices so low and growth potential so high, there’s a lot of action and excitement all year long.
If you have a strong stomach and can deal with high quantities of daily volatility, cryptocurrency is the way to go. Consider that many crypto holders thrive on price spikes and dips, riding them out by scalping for short-term profits. Long-term holders of crypto stand even better chances of earning good returns. That’s because the major alt-coins, like Ethereum and bitcoin, have experienced significant price increases since their inception.
There are numerous ways to earn in the crypto niche. Some choose to become long-term holders of the top coins, as noted above. Others choose to stake their holdings as a way of earning a type of interest on account balances. Scalpers and day traders love the crypto markets because there is never a shortage of price action. Even the most stable coins experience huge price swings in both directions on a daily basis during volatile seasons.
For as long as there have been financial exchanges, people have traded, swapped, bought, sold, and invested in gold and other precious metals. By far, gold is the most popular of the precious metals. The yellow metal offers people a way to hedge against inflation and falling securities markets. That’s because gold tends to rise in price when consumer prices rise and when stocks tank. For those new to precious metals, it can be wise to hold a small percentage of a portfolio in gold.
Trading foreign exchange currencies, or forex, is a hugely popular way of earning a return on capital. Millions of working adults all over the world trade forex part-time every day. Exchanges are open 24 hours per day during the week but are closed on weekends. Traders make money when they buy one side of a currency pair that appreciates in relation to the other side. If you purchase USD/JPY (US dollar/Japanese yen) as a dollar holder, you stand to earn a profit when the dollar strengthens against the yen.
REITs (Real Estate Investment Trusts)
REITs offer real estate enthusiasts a way to make money with real estate and get into the market without buying property in whole. Because they’re set up as trusts, you can purchase shares in them and still get most of the tax-advantaged benefits of owning real estate. People in all income brackets use REITs to diversify portfolios, hedge against inflation, and gain direct exposure to the real estate market.
DRIPs (Dividend Reinvestment Plans)
DRIPs are an excellent way to build a portfolio in an efficient way. Their main feature is the plan’s automatic reinvestment of dividends into fractional shares of stock. Keep in mind that if you own 20 dividend-paying stocks within a DRIP, any payouts will be used to purchase more shares of the same stock that paid the dividend. People tend to set up DRIPs as long-term vehicles to fund retirement accounts.
CFDs (Contracts for Difference)
CFDs are not an asset class but a way to invest in just about anything. Whether your preference is equity, foreign currency, precious metals, cryptocurrency, or any of dozens of other choices, you can use CFDs to earn a profit on price movements. A CFD is a contract in which people take a long or short position on a given asset, like gold. Note that the holder of the contract does not own the asset but a contract to pay or receive payment based on gold’s price moves. The beauty of CFDs is that entry prices are low, and holders can control their risk exposure. Plus, there are no commissions on trading the contracts. That means investors can go short on any security as easily as they can go long.