Of the hundreds and thousands of ways to make money very few exist which can be considered as guaranteed to make money fast – and importantly whether they will work! Without taking criminal activity into account, one legitimate way to make money in a short space of time is through speculation. This involves investing in an idea or asset which you believe will increase in value in the future. In terms of ideas, this can be in the form of venture capital, providing the financial backing to a business plan or development with the conviction that your stake will pay you back in multiples once this idea has come to fruition. However, in terms of speed this can be considered a slower and more gradual process than the second option; investing in an asset. And you still need a considerable amount of money to start with!
There is NO EASY PATH TO RICHES, AND THE MARKET can be MOST BRUTAL. When investors or traders enter the stock market, they want their investment to multiply multifold overnight. Which is unlike in any other business they would choose. It is the hype and psyche created by the markets, which fuel this attitude.
I try and build into my risk management that any non-footsie 100 share has the possibility of being trashed by 50% at any time, and of course, worse. But what is more likely is that a sudden whipsaw will take you out on a sudden decline, and prevent a considered decision based on likely risk. Moral of the story, always ask yourself what you’ll do if any asset falls by 50%. Can you afford/will you be in position to act rationally? If you can survive such falls, chances are you’ll learn from them, and be better prepared next time round
On the other hand speculating on an asset such as a company, currency or commodity can provide multiple earnings in a very short space of time without necessarily requiring a large initial investment. Speculating on the forex markets by purchasing large quantities of a currency is possible due to the availability of leverage offered by traditional brokers. This allows traders to purchase currency many more times the value of their initial deposit and provides leverage for traders to make money fast through the smallest price changes over the course of a single day. Trading on margin requires that a trader funds their account with a minimum deposit and allows them to use this deposit to leverage their currency purchases to many times multiple of this.
One of the pitfalls with this leveraged speculation is that the risks are also magnified. Whilst vast sums of money can be made for a successful trade, equally large sums can be lost for those trades which do not work out. An example of a heavily leveraged position would be trading on a margin of 100:1 meaning that every $1 can buy $100 worth of currency; a $1000 deposit would thus give the trading power of $100,000 and a significantly powerful position to make money fast with the correct investment.
Of course spread betting cuts both ways and you can likewise lose money fast if you happen to be on the wrong side of a trade!
Speculation on commodities and stocks can also be executed with large accounts which magnify the gains of the currency. One of the easiest, and most popular, ways to do this is by spread betting on price movements which offers both fast gains and the ability to make big gains from a limited amount. Many spread betting accounts will not, for example, allow you to trade beyond your deposited amount and therefore you are unlikely to receive the ‘margin call’ that so many traders dread from their brokers. Spread trading all assets can be considered an all-round safer option to trading and making money fast. The placing of a bet with a stop loss within the value of the initial deposit can grow in many multiples of the original value of the account within a very short time if the trade is managed correctly.
An example of a successful spread trade making money fast for the trader is a 10GBP-per-point spread trade on the UK sterling against the US dollar prior to an announcement by the Bank of England that they are increasing interest rates by 0.25%. The effects of such a news release are likely (ceteris paribus) to have a positive influence on the value of the UK currency and it could well rally with the increased demand by investors to gain the extra interest on their capital. Let’s suppose that over the course of the day the GBP/USD increases by 150 points as this demand pushes the value higher. The value of the spread bet has risen to 1500GBP in the space of a few hours. Given the tax free nature of spread betting you stand to fully pocket this sum without the government coming after you for his cut!