i am a student with a small monthly income. i wan to take about 20-10 % of it for a medium-risk investment , and i was wondering what would be the best option. my personal banker does not have an appropriate plan for anything less that 1500$ , so i am looking for any other option. micro-investing- is in investing in small frequent portions worth it? doesnt commision eat up all the profit? if so? wehre can i do that? banks are not an option, can i do it online? how easy would it be to "liquidate" my money back when neccessary?

cryptocurrencies- the riskiest way there is to invest my money but some of my friends doubled their money in relatively short time. does anyone know if there are tax issues with it? high comissions? forex trading- how risky is it really? what are my cahnces to make a profit without prior experience?

are there any other possible solutions?

2 Answers 2


For a time period as short as a matter of months, commercial paper or bonds about to mature are the highest returning investments, as defined by Benjamin Graham:

An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative.

There are no well-known methods that can be applied to cryptocurrencies or forex for such short time periods to promise safety of principal.

The problem is that with $1,500, it will be impossible to buy any worthy credit directly and hold to maturity; besides, the need for liquidity eats up the return, risk-adjusted. The only alternative is a bond ETF which has a high probability of getting crushed as interest rates continue to rise, so that fails the above criteria.

The only alternative for investment now is a short term deposit with a bank.

For speculation, anything goes...

The best strategy is to take the money and continue to build up a financial structure: saving for risk-adjusted and time-discounted future annual cash flows. After the average unemployment cycle is funded, approximately six or so years, then long-term investments should be accumulated, internationally diversified equities.

  • I meant medium RISK investments. As to time scope i prefer very short term, as in mAtter of months.
    – davyx8
    Commented Mar 18, 2014 at 20:19
  • @davyx8 Please note edit.
    – user11865
    Commented Mar 18, 2014 at 21:22
  • i see. so basically your saying, that micro-investing is not a viable solution if liquidity is needed? lets say i give up that requirment, what then could be the options? or the answers still holds?
    – davyx8
    Commented Mar 19, 2014 at 13:04
  • @davyx8 It's really hard for such a small amount and time period. I highly urge you to build a solid financial structure first. It simply must be done to have a large retirement fund because unemployment must be funded. Once that's done, build solid investments. $1,500 in quick money is nothing compared to billions in slow money. Now, finding ways to boost the returns of your solid investments is another question...
    – user11865
    Commented Mar 19, 2014 at 16:07
forex trading - how risky is it really?

It all depends on how much risk you take. The problem is you have no idea what the risks are, and so you will lose all your money.

what are my chances to make a profit without prior experience?

I would say zero. But if you want to have a go, try reading reminiscences of a stock operator, then try reading my own attempt to make sense of the same stuff

Hey, as you're a student you could even try making sense of my FX and MM training on the same website.

Good luck

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