When investing in the stock market, it is reasonable to expect an average return of 10% per annum – of course some investors do better by beating the market. Still, doubling your money or earning 100% revenue is a lofty order.
That does not mean it is impossible. In fact, the tips below from three Motley Fool contributors (and successful investors) reveal some different ways to turn $ 1,000 into $ 2,000 by 2021.
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Crazy is like crazy
Chuck Salatta: Only once in my investment career was I able to earn an internal return of over 100% on the money I invested in a single year interval. Even so, owning one is still beyond the reach of the average person No. Suitable for the bulk of whose overall portfolio. In addition, the fact that I could not reflect on that success was that income was due to luck more than any other factor.
All that said, if you tell me, you have to double $ 1,000 in a year’s time Otherwise, I will look at the variation of that theme for any shot of hope for success. After all, they offer the advantage of options Foreign, So when things go right, those wins get bigger. Of course, the downside of that forex is that when things go wrong, they can actually go very wrong.
The cornerstone of the strategy is to combine the potential of options with a race that goes against the grain of Wall Street wisdom. Mix them together at the margin account for even more forex, and then Hope For the following:
- You are right, Wall Street is wrong
- It has been proven that you are right Over time Allowed by expiration dates of options
- The fact that there is no market action against you before that prompts you to close your positions in advance
If it sounds like multi-level madness wrapped together in a completely unstable package, you are absolutely right – it is. Again you think there is a reliable investment strategy that can double your money within a year. Like me, you can get lucky too Once Or Once in a while, But luck and hope are not the standard ways to make money in the market.
After all, a $ 1,000 investment that doubles every year would be worth more than $ 1 trillion in just 30 years. If you can reliably double your money in the market within a year, a total of more than 60 trillion-year-old investors will now be running. No tells you how high the barrier really is.
Look for small players who can tap into big trends
Keith Noonan: If I work on doubling the investment of 1,000, I will narrow down my search for small cap companies that seem to benefit from creating the shape of revolutionary technological trends. This is an acceptably risky approach, and it often involves a healthy (or unhealthy, depending on your perspective) speculation level. This may not be a great fit for every investor. However, this is one I have succeeded in – and I plan to continue working in the future.
So, why small-cap technology stocks? For one, I think the technology sector is a great starting point for risk-tolerant investors looking for explosive returns. Small-cap companies are generally easier to grow their sales and revenue relatively quickly because they start from lower basement levels. Business successes that are the footnotes for big companies will give explosive stock profits to smaller players.
In order to give me the best opportunity to support small-cap winners, I look for companies that can see the rise of business performance or improved performance perspectives, a fact that has grown thanks to the evolution of trends including the Internet of Things, 5G and trends. Each of these potential revolutionary technological movements is in the early stages of development and will produce great winners. Many of these winners are not yet household names, and I think it would be very beneficial to support some younger, lesser known players – even if they take a higher risk.
I am still decades away from retirement and plan to invest in the market for many years to come, so the thought of not leaving some ambitious growth challenges does not bother me much at this point. I have also invested in safer, less speculative companies, and believe in a consistent approach to portfolio architecture, even when prioritizing growth.
If you invest $ 1,000 in stocks and aim to double your investment over the course of a year, you should go with the understanding that stocks that are capable of delivering that kind of return usually come with a high level of risk. There are things you can do to improve your chances, such as focusing on small companies that can use powerful trends, but don’t be shocked if it doesn’t go away within 12 months. The biggest successes can be achieved with somewhat monolithic small-cap technology stocks, but thank you for supporting some safe alternatives.
Definitely take advantage of a bet
Christy Bieber: Both of my colleagues offered possible – but risky – approaches to doubling your money. I’ve got something else: a 100% firm approach that can’t be missed.
It’s as easy as taking advantage of your 401 (k) competition. If your company matches your pension account contributions, you can earn 100% return immediately by making a sufficient contribution to receive applicable funds. If your employer offers a 100% match of your contributions of up to 4% of your salary, if you put in $ 1,000, it will immediately turn into $ 2,000 (immediately or in your match waste).
Of course, the downside is that not everyone has 401 (k) access with an employer fit. If so, you may not be able to take advantage of this easy opportunity. But you can get some more free money by investing in tax-benefit accounts. If you put $ 1,000 into an IRA and you are in the 22% tax bracket, you should save up to $ 220 without tax on the amount you contribute. Your investment will only cost you 80,780, but since you end up with $ 1,000, you will get an immediate and risk-free 28% return on your investment. Not 100%, but very enjoyable.
If your income is enough to get a saver’s loan, this deal is even sweeter. You can claim up to 50% of your first $ 2,000 worth of tax credit on pension contributions as a filer or as a married joint contributor with a contribution of $ 4,000.
Invest a maximum of $ 2,000 in an IRA as a file and say you are in the 12% tax bracket. You will get a credit 1,000 loan. Your deduction for your IRA contribution will save you another $ 240 on your tax bill. Since your taxes will be reduced by a combined $ 1,240, your investment of 2,000 will cost you 60 760 – but you will have $ 2,000 in your IRA. So now you Further Doubling your money.
Now, in theory you can always choose to invest that $ 2,000 in a crazy options or small cap stocks – tap into the trends – if you want to take some chances to double it again.