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Invest Small Amount of Money - DOC

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					INVEST SMALL OF MONEY
When you are looking to make money in the shortest amount of time, and do not have a lot of
money to do it with, you want to make small investments. Or, you may have a lot of money but
are not yet familiar with the best investing techniques. A lot of profit can be gained from small
investments as long as you follow some basic rules. Here are four of them for making small
investments but getting great returns.
Take Time to Investigate
This should probably be your key factor when deciding where to invest your money. You do not
want to jump too quickly into something until you are thoroughly satisfied that it is a good move.
Some things that you will need to consider before you make that move are:
• What are the risks?
• What are the minimum and maximum possible results?
• What is the time frame for the desired results?
• Will this money be liquid later?
Answering some questions honestly may make you decide that it may not be that good of a move
- or that it is an excellent move. A thorough investigation and a comparison with other possible
investments will help you determine which one is the best one for you.
Know When to Jump
Experience will teach you when it is the best time to make your move. One thing that you don’t
want to do, however, is to repeatedly hesitate on moving when everything indicates that it would
be a good investment.
Unless you are willing to depart with your money, make sure that you always have a margin of
safety on your assets, or else you may lose it all. This may tend to make you more hesitant, but it
will also lead to wiser investments.
Diversify Your Assets
Whatever your reason for looking for small investments, you want to be sure that you do not put
all your eggs in one basket. The reason is that it is much safer to diversify your assets across
several markets using different instruments and levels of risk, than to possibly lose it all in one
bold but possibly misguided shot. This kind of investing is not worth the risk and it will most
likely cost you everything.
Balance your assets with different types of investments into bonds for the safest investment,
mutual funds for good investments, and various types of stock for your highest yields. The
highest yield investments are also the least safe investments, however. Any money that you
cannot afford to lose should never be invested in high-risk categories.
Choose the Greatest Profit
Whenever you may find that you have more than one option for making a good small investment
and all other factors being about equal, you should go with the one that has the greatest profit
margin. Short-term investments will also provide you with quick profits and enable you to use
your money again in another great deal. Investments that prevent your money from being liquid
for a long time may not be a good idea, when you consider that many profitable small
investments could also be short-term

				
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posted:10/19/2008
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