Should I invest into stocks or Forex?… I have $100 and I want to know what is the maximum money I can make from it within 3 months. Which one is quicker for returns, stocks or Forex and please explain why.
Investing/trading isn’t about making money fast, it is about the preservation and growth of capital over a given time period.
I probably wouldn’t bother if I were you. At this stage you should not be thinking about how much money you can make, especially given that you only have $100 – any outstanding return would still not yield much money at all. If you perform very well then you might have $110 ($10 profit) in 3 months, and who really cares about that?
If I were to answer the question in the way that you want then I would say Forex, simply because you most likely won’t have to pay commission on an investment. If you were to buy stock you would need to pay about $7 commission, which is just under 10% of your total capital. Moreover, you would have to be highly leveraged to even make up for the amount you paid in commission…
You should invest in an education in the financial markets. You should buy books, read the news, read Bloomberg, read the Wall St. Journal or the Financial Times or whatever. The chances are you will lose the $100.
Don’t get me wrong, you may not lose it. A friend of mine started with £100 and a bunch of trades and a year later that was £1400. However, he probably wasn’t asking himself how much he could make when he started…
$100 dollars is petty. Do not even bother trying with $100 because the odds are against you.
Spend the $100 on your education. Start reading up on FOREX and investing. A trader must be educated and discliplined in order to profit.
If you want to pursue trading, start with play-money. Reason being your loss of $100 in a live account is almost guaranteed.
Conclusion. Educate yourself. Clean yourself up. Practice.