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9:57 pm - Friday September 30, 2016

How to double investments in a month

| Investing | Rating: 4.5
by Numan

The easiest way to double your investment in a month is in a casino. This may sound simplified but it holds an important truth. To double your investment in one month you must be willing to lose it all in the same month. If this is the case then read on (although my main point should be clear by now).

A well known rule of investment is that return is function of risk. 100% monthly return is equal to a whopping yearly return of 1300%. This sort of return on investment is available only in derivatives and derivatives based financial assets. Some examples are options, future contracts, convertible bonds and mutual funds trading options.

Investing in derivatives can actually produce greater return then merely 100% a month (Up to 1,000% and more). What’s the trick then? Trading in derivatives is highly complicated and requires a deep understanding of financial assets and markets. When trading in derivatives one is actually risking the initial investment required to purchase and option, for example. If an option is not put to use the initial investment is lost.

Making big money in derivatives, as a personal investor which intends to purchase options and not sell them, requires high variability in markets. Unfortunately this variability is not always available. Actually, these levels of variability are handful each year.

Recent surveys show approximately 85% of personal investors in derivatives lose on average. As trading in derivatives is mostly performed by professional traders your chances are slim to begin with.

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