Below we give you 3 best ways to invest small money:
1. Investing in a small project:
This option is suitable for many to invest their money. It is possible to search for a project that fits the amount of the amount, or even to have relied on a very small project and does not require a lot of money. Small projects that require small capital need more effort and time in return.
Learn how to start a small business and how to do it. Investing in a small project is not about starting with a lot of money, but rather about your passion for your idea, good planning, and a clear understanding of what the market needs .. It is very possible to achieve success with little investment in the beginning.
You can start from the things you donate or love to do, and of course, you take advantage of the skills that you acquired during your career or career. Or converting a hobby into a project, if you love fishing, open a shop for its tools, if you are an avid reader and love writing a book, turn your love for candy into a love for candy making .. hire your art to serve your business, it is the giant works where both art and science and Hobby.
2. Trading in financial markets:
With a small amount, you can trade in financial markets, such as stock and foreign exchange markets. Since you do not have a lot of money and want to invest only a small amount, you have to find a financial broker that suits your capital, with inexpensive services and low commissions, but you must pay attention to using the leverage (meaning the money that the broker gives you to increase your ability to trade volumes big).
But do not forget that when you invest in financial markets, whether in the stock market, commodities, or foreign currencies, you are at risk of losing your money in part or in a whole. Therefore, before starting any trading process, you must be familiar with the basics and principles of financial market operation.
The Saudi stock market is considered the best small sum investment in Saudi Arabia (investing in the beginner stock market). Even if you have a large amount of money, try to start from investing a small amount, because this method is the most secure because it is possible to understand the issues related to the financial markets and how they work.
3. Investing in Learning:
You can invest a small amount in learning a skill or several skills that may enable you to achieve income in the future, and there are currently many educational platforms and sites that provide detailed lessons and training courses in all areas imaginable. You can also buy e-books to learn a new skill instead of paper books, which are always expensive compared to e-books.
“95% of traders fail.”
At least this is a statistic that you often find online. But this number is not scientifically proven. Research shows that the share of losses is higher. Here are 21 facts in the world of trading that scientists have discovered by analyzing broker data and trading results.
Some of these facts explain why most traders lose money:
80% of daily traders stop trading during the first two years.
Of these, almost 40% are trading daily in just a month. And trading within three years only 13%. After 5 years it remains on the market only 7%.
Daily traders sell gainable shares at 50% higher than losers. The share of selling profitable shares makes up 60% of sales, while the losing stake is only 40%.
Profitable private investor lags the market index around 1.5% annually. As for the effective traders, they fall behind the index by 6.5% annually.
Investors who have achieved good results in the past continue to receive profit in the future. At the same time, only 1% of traders are able to make an expected profit after charging fees.
Traders with a 10-year loss history continue to trade. Thus, they continue to work in the market even after obtaining a negative evaluation of their capabilities.
Only 1.6% of traders remain profitable for the year. But they are very active and their trading turnover is about 12%.
Profit traders increase the trading volume from those who lose.
The poor usually spend most of their income participating in the lottery, and their demand for the lottery is inversely proportional to their low income.
Those investors whose current financial position differs from the level they set for themselves buy stocks with a higher level of risk.
Men trade more than women, and single men trade more than married men.
Poor young people who live in cities and belong to minority groups invest more in lottery-like stocks.
People with a gambling tendency earn less than people without such tendencies. This rule applies to people, whatever their income.
Investors tend to sell gainable stocks and keep losing.
Trading volume in Taiwan’s financial markets fell by nearly 25% after the lottery was permitted in April 2002.
In those periods when lottery profit is high, the amount of personal trading decreases.
Investors often buy those shares they previously sold for profit, from those they sold at a loss.
Increasing the search for the name of the tool means increasing the profit using it during the next two weeks.
Investors trade increases if the last deals are successful.
Traders do not learn to trade. Traders try to learn by trading is more like a gambling game.
The average daily trader loses funds from the margin for the services of a broker.
Trader losses in Taiwan make up about 2% of GDP.