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How would you invest $100K USD aggressively?

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Re: How would you invest $100K USD aggressively?

#41

Post by pryce »

CyberFonic wrote: post #9
mtmail wrote: post #3

Are you willing to loose all $100k?

Risk correlates to expected returns. The higher the returns the higher the risk. To get the sort of returns you seek, you will most likely need to use leverage, which means you could lose more than your initial $100k, lots more.

No it doesn't; that is just a broad principle that is inapplicable in many specific situations. For example, any of us here could offer an opportunity for very low returns at very high risk, it just wouldn't amount to an attractive proposition to a thoughtful prospective investor who understood the offer.

Re: How would you invest $100K USD aggressively?

#42

Post by mythrwy »

tonteldoos wrote: post #39
closeparen wrote: post #37

Earlier quoted context omitted.

Dumb question: since leverage allows you to lose more than you have, what are the repayment terms like when you get yourself into debt? Are the interest rates, repayment term, monthly payments, etc. clearly disclosed like they are for a mortgage or car? How many amateur forex traders had it end in wage garnishment?

That's not quite how it works (at least, with most of the online forex trading houses like FXCM). At any given time, they know exactly how much you are up or down in total (ie, including your leverage). If you hit the point where you're going to lose more than what you have in your account, they will perform a margin call and close out all your positions. The really sucky bit here is (I've had that happen) when the m…

Do be careful with Forex.

Lots of shady stuff about and what many people don't realize in many (most?) cases of consumer internet platforms (like FXCM), one is actually trading against the company (they are the market maker) not against other participants. Not saying what does or doesn't happen, but the situation is such that there is incentive to do things like widen spreads and hit stop losses.

Re: How would you invest $100K USD aggressively?

#44

Post by bsvalley »

If we had a valid answer to your question we would already be rich. There is no answer. Though, I'd look into bitcoin as a very risky investment today. Who knows? A bitcoin could be worth $20000 in 6 month. That's the only doable/crazy thing right now I could think of. 3-6 month is too short unless you go hard on day-trading and get super lucky trading futures, options, etc.

Re: How would you invest $100K USD aggressively?

#45

Post by tonteldoos »

mythrwy wrote: post #42
tonteldoos wrote: post #39

Earlier quoted context omitted.

That's not quite how it works (at least, with most of the online forex trading houses like FXCM). At any given time, they know exactly how much you are up or down in total (ie, including your leverage). If you hit the point where you're going to lose more than what you have in your account, they will perform a margin call and close out all your positions. The really sucky bit here is (I've had that happen) when the m…

Do be careful with Forex. Lots of shady stuff about and what many people don't realize in many (most?) cases of consumer internet platforms (like FXCM), one is actually trading against the company (they are the market maker) not against other participants. Not saying what does or doesn't happen, but the situation is such that there is incentive to do things like widen spreads and hit stop losses.

What this guy said. I've known a handful of people who have made some money on forex, by being extremely diligent and patient. I know many, many more people (including myself) who have lost unhealthy amounts of money while trading forex.

Re: How would you invest $100K USD aggressively?

#46

Post by matt_wulfeck »

minhaz23 wrote: post #31
gjmarsh wrote: post #24

Real estate. Buy a cheap house with leverage, fix it and either rent it out, or sell it. If you rent, cash out refi, rinse and repeat. Many fortunes built this way. High use of leverage means many shirts lost as well, however many of our laws (assuming US) are skewed to benefit real estate investment and speculation... with the current admin, I don't see that changing anytime soon. I don't think you can find better o…

>If you rent, cash out refi, rinse and repeat. Can you expand on that point? If they rent it shouldnt they just sit around and collect payments? Also, isn't this all highly reliant on location?

Cash out refi allows you to use your rental as leverage for a down payment on the new house.

Re: How would you invest $100K USD aggressively?

#47

Post by Rubinsalamander »

Roulette odds are 47,37% for doubling. So if you are not confident that your investment can beat that dont bother.

Otherwise use high leverage products in the stock market which will amplify your wins/losses. Best case would be to make a strategy write it down and stick to it. Your biggest Problem there is psychological strain if the 100K means a lot to you. You will at best have a miserable time and at worst panic sell in the wrong moment. So if you cant afford to lose most or all of the 100K dont invest it especially not in high risk products.

Re: How would you invest $100K USD aggressively?

#48

Post by cobookman »

muzani wrote: post #16
gressquel wrote: post #4

bitcoin, you may get 10x in six months

Yeah, but good luck cashing out on that $1M USD.

haha yeah seen a few threads mentioning that coinbase limits you to cashing out only 15-20k/week.

However I have heard of a few exchanges that will let you cash out 1m+ in BTC.

Re: How would you invest $100K USD aggressively?

#49

Post by matt_wulfeck »

Here's how you might be able to double your cash flow, but not necessarily your money. Use it in a down payment for a multifamily unit, preferably triplex or quadplex. Live in one and rent the other. in 6 months use a cash-out refi to buy another quad-plex. Brace yourself for the terrible aspects of landlordship.

Re: How would you invest $100K USD aggressively?

#50

Post by tonteldoos »

gjmarsh wrote: post #24

Real estate. Buy a cheap house with leverage, fix it and either rent it out, or sell it. If you rent, cash out refi, rinse and repeat. Many fortunes built this way. High use of leverage means many shirts lost as well, however many of our laws (assuming US) are skewed to benefit real estate investment and speculation... with the current admin, I don't see that changing anytime soon. I don't think you can find better o…

Like gjmarsh said, this might only apply to the US. I would probably be skeptical of doing this in (say) Australia at the moment. OP didn't mention what country he's in...
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