Trading and investing are practices that are often accompanied by great success stories or terrible financial tragedies. So, when anyone reads “Investing $100, Making a $1,000”, it's normal to believe that they're being taken for a fool. However, we believe that with the right tools, mindset, strategy and advisement from professionals, most people out there probably can make $1,000 from investing $100 in a single day.
What's probably the most important part for this strategy to work is to be constantly advised by professionals. This takes the form of investment newsletters, of which we believe Capitalist Exploits to be the most simple to understand, yet thorough, one to subscribe to. Not only users will be able to be informed at all times, but they will also gain access to the lowest risk and highest yields opportunities on the market.
We truly believe that the first step towards fulfilling this strategy is having the right information and outlook on the markets. This is something that Capitalist Exploits does as its main benefit. So, are you ready to take the first step into this investment adventure?
When most of us have $100 USD on hand, we have a very hard time thinking about how to make that amount go really far. If we put it in a bank for the interest we could be waiting years for it to generate at least 10% of the original amount. However, we do think it's quite possible to make the most out of those $100, here's how:
#1 Investing $100, Making $1,000 A Day: Is It Possible?
In short, yes, it's possible, but it's very, very hard. An investor that intends to fulfill that goal needs to be very active, disciplined and creative. This strategy is meant for people who can exploit the most out of all the tools and strategies at their disposal. This means defining strategies, creating investment plans and most importantly, being extremely informed.
Although, it's worth mentioning that being informed and keeping up to date in financial news is hard to do on your own. To simplify that aspect and spend more time actually investing, we recommend subscribing to a Robo advisor or even a financial newsletter.
An investment newsletter's job is to keep investors informed. Users can read up-to-date news in less than 20 mins and gain crucial information that will work on its own to create better investment plans. We cannot stress enough how important it is to be informed and to do so in a simple and quick manner.
One of the better examples we can recommend is Morning Brew, which we reviewed not too long ago in “Morning Brew: Free Newspaper In Format For Millennials“. Morning Brew is especially useful because it's completely free, for everyone.
However, enough of that, it's time to get into the meat of investing $100, making $1,000 a Day.
#2 What Do The Most Successful Traders Have In Common?
When an investor becomes exceptionally successful is because that person usually fits between a certain profile in the industry. Those successful investors normally have these characteristics as part of their work motto:
- Discipline: Learning to recognize loss/earnings and not pulling out of an investment too early/late.
- Trading Risk Control: Learning when an investment is getting too risky or less profitable.
- Emotional Intelligence: The ability to not let emotions get in the way of making decisions in pivotal investment moments.
- Intuition: “Feeling” what's going to happen thanks to previous knowledge of the market/global events.
If any new investor manages to work on and gain each of these characteristics, they're already on their way to make a living out of investing.
#3 Investing $100, Making $1,000 A Day: Have A Trading Plan
The first thing that's needed for this plan to work is to develop a strategy. This strategy then turns into an investment plan that will need clear parameters to follow, clear goals and alternatives for when the strategy doesn't work. Here's a bit more on how to create this investment plan:
What A Good Trading Plan Contains
- Objective: requires defining goals, capital, risk, schedules, and markets in which to invest.
- Analysis Method: Choosing between preferred analysis methods, those being charts, different financial analyses, news and more.
- Systematic Review Of The Plan: Once the first version of the plan has been implemented, it will need to be ironed out to clear any flaws it possibly has.
What Goals To Set For a Good Investment/Trading Plan?
- Setting Rules: This allows for the plan to not deviate from its initial goal.
- Analyzing The Market Thoroughly: “Starting something without a plan is planning to fail” And there's simply no way to fail at investing if you know how the market works.
- Finding The Best Entry And Exit Times In The Market: Defining financial objectives and instruments to trade will help to know what operation to carry out during the trading session.
- Managing Emotions: Defining a framework of rules eliminates any subjectivity in decision-making.
- Avoid Over-Operating: Having clear rules prevents making hasty decisions. Without defined rules, a day trader is likely to want to buy more instruments to compensate for losses.
- Manage Risk: Choosing the right level of risk is essential to determine the amount of capital to invest and the expected profit.
#4 Know And Dominate Trading Strategies
In the trading world, there is not a single easy method of earning money. That means, there are strategies that adjust to each financial objective. Here are some of the most commonly used strategies for trading:
- Trend Trading: Investors try to make a profit by studying the direction of prices. If the trend is bullish (prices are expected to rise), investors will take a long position and buy the asset. If the trend is bearish (prices are expected to drop), investors will take a short position by selling.
- Price Patterns: It consists of taking advantage of short-term price patterns. In this sense, these investors are more interested in small reversals in the price movement of a market. In other words, they try to detect small reversals in advance and operate to benefit from small movements.
- Scalping: The strategy is to carry out a large number of operations that remain open for a very short time. It is a short-term trading strategy that allows obtaining small but frequent profits since it focuses on achieving a high rate of profit. Scalping requires a very strict exit strategy since losses can quickly offset benefits.
Investors can use each of these trading strategies separately or even use them all at once. Keep in mind that a prior in-depth analysis of the financial assets is needed in order to choose the strategies that best suit each situation.
Professional traders test each of these strategies with historical data and when they find patterns they invest their capital. So, as far as we've gone now, it's possible to claim that multiplying those initial $100 is possible, just under very strict circumstances.
#5 Investing $100, Making $1,000 A Day: What To Invest In And Where?
Take into account that even though this adventure starts with only 100 USD, little by little this capital is going to increase. This means that the initial investment plan will grow bit by bit according to the amount of a user's ability to invest.
However, there are several low-cost financial instruments that an investor can access that will allow you to diversify a portfolio. For example, options, ETFs and CFDs are surprisingly inexpensive.
We've delved into each instrument before, specifically on these posts: “How To Trade ETFs: Diversify Simply And Inexpensively“, “Spread Betting Vs CFD: A Winning Bet” and “Day Trading Options: How Much Do You Want To Earn?“. Each of these instruments and techniques is quite useful whenever starting out in this plan, so we recommend reading them.
Finding the right platform in which to invest is also crucial when it comes to saving in the long run. Capital.Com is an online broker we've used before to trade CFDs in the past. The best part of it? It's completely fee-free.
Another good online broker is Robinhood, which allows investing with an app in a large number of financial instruments. Opening an account at Robinhood is very easy and does not need minimum opening amounts. We particularly recommend Robinhood for trading financial instruments such as ETFs.
There are also platforms dedicated to financial derivatives like Tastyworks, an American broker focusing on options trading. It does not require minimum deposit amounts.
When it comes to choosing a broker, though, we believe that the best one as of writing this post is Capital.com. It is a zero-commission broker that excels in all the right places and will be the perfect tool for you to begin trading safely, quickly and effortlessly in no time.
#6 Investing $100 Making $1,000 A Day: Does Day Trading Work?
The short answer is yes. However, it takes a lot of discipline to carry it out effectively. It's a way of trading that involves risking capital with a chance to win or lose money really quickly. Although, many day traders have managed to be very profitable by following a daily trading plan.
We recommend you read our article “How To Start Day Trading: Generate Returns During The Same Day“. There you will find short-term strategies, indicator analyses and the best way to create a trading plan.
How To Start Day Trading With Only $100?
With $100 USD as an initial investment, it's possible to carry out daily operations with Contract for Differences (CFD). CFDs allow taking advantage of long and short positions. The interesting part about CFDs is that users will also be able to use leverage, which practically means trading as if you had more capital invested.
Here's another way to do the same:
Using A Margin Account
A margin account will allow investing a much higher amount than the initial capital. Basically, with a margin account, you can borrow money from your broker with the intention of having much greater capital and being able to exploit the opportunities present in the market.
For example, if a certain financial instrument such as CFDs has the potential to double its price in certain circumstances, a margin account could turn $100 USD into $200 to invest in those. However, take into account that while investing in a margin account can be extremely profitable, it can also turn into extreme losses.
Suppose you have a leverage of 5 times your initial $100. In other words, you have $500 USD as initial capital. Now let's say you invest in 100 CFDs that cost $5 each, using all of your capital to invest. If the price of that instrument suddenly changes to $6 instead of $5, congratulations, you've made a 20% profit on your investment and you made $100 in a single trade.
However, if the price of that CFD suddenly drops to $4 instead of $5, you've lost 20% of your total investment and now have only $400 to keep trading. If no leverage was done in this same operation, the earnings and losses would have been $20 each. That's how powerful and dangerous leverage is.
Leverage is one of the tools that can probably lead to investing $100, making $1,000 a day. However, it's extremely risky and it requires a meticulous investment plan In order for it to work efficiently.
#7 Investing $100, Making $1,000 A Day: Complement Your Strategy
Once an investor has a strategy that works, all that's left is to perfect it or help that strategy go further. For this, we suggest using Robo advisors and, seeking financial advice from experts.
7.1 Robo Advisors
Robo Advisors are AI-operated software programs that invest money for you. Robo-advisors are digital platforms that provide you with automated, algorithm-driven financial planning services with minimum human supervision.
Their services even include automatic rebalancing to tax optimization. Although this can be done without human intervention, many providers also offer to have human advisors available to answer any questions an investor might have.
How Do Robo Advisors Work?
What Robo–advisors do is automatically selecting investments and building a diversified portfolio tailored to an investor's financial needs. Once funds are invested, the software will automatically make changes to the investments to align with the portfolio that the investor wants.
Some Robo-advisors are known for even making tax-loss harvesting, which is the process of making trades automatically to help reduce taxing bills.
Something important to mention is that most Robo-advisors will divide their investment portfolios by risk. Therefore, investors can choose anything from a conservative portfolio to an aggressive one.
How Much Do Robo Advisors cost?
As you may have already guessed, each Robo-advisor has a reasonable service fee that can be either a fixed monthly fee or a percentage of assets. Keep in mind that with a Robo-advisor, you're paying a service fee and you’re also paying the expenses of the investments used.
For Robo-advisors that charge a fixed monthly fee, that fee can typically range from around $15 to $200 per month depending on the size of the portfolio that the investor needs.
Robo-Advisors are a great way to complement an already established investment strategy. In our post “Robo Advisors In Canada: How To Choose The Best One For You” we review a large range of the most promising options in Canada.
However, if you only want the best of the best, we recommend checking Wealthsimple out. This is the best-equipped Robo consultant in Canada who manages your investments using a world-class financial team.
7.2 Is Expert Help Really Needed?
Definitely yes! A good, self-made, strategy can lead an investor to great heights, however pairing that up with expert financial advise is granting that plan a bigger chance of success.
When it comes to expert help and informing investors, we can't recommend Capitalist Exploits enough. It's currently the investment newsletter/advisor company that offers the most thorough recommendations while still keeping investors informed in the most pertinent global news.
We recommend the financial services of Capitalist Exploits because it will allow you to invest your capital in the most profitable opportunities with the least possible risk. Also, the experts at Capitalist Exploits track each opportunity globally so that you can diversify your portfolio and increase your capital.
Investing $ 100 Making $ 1,000 A Day In Summary
- Investing $100 and making $1,000 a day is possible. However, to achieve this, the investor must be extremely informed, emotionally intelligent and disciplined.
- Making the best decisions comes in part by knowing the playground, which is why expert advice is so important.
- Every strategy or investment plan needs to be reviewed every so often to keep it at its maximum efficiency.
- Advisors will tell when there's a pattern or a trend to follow, but rather sooner than later you will start to see these on your own.
- Robo-Advisors can be a great way to invest safely and automatically.
We recommend a reputable and reliable investment advisor. If you're just started investing and don't want to be exposed to high risks, we recommend that you join Capitalist Exploits today for the following reasons:
- Capitalist Exploits provide an incredible amount of information about financial markets that help beginners learn
- Capitalist Exploits is focused on identifying high-return, low-risk investment opportunities, which is exactly what someone who is just starting on needs
- The level of asset diversification offered by Capitalist Exploits will allow any investor to achieve a huge and successful portfolio.
So, are you ready to start investing, creating your strategy and being advised by the best in the industry?