If your $700 is the start of a lot more to come then go with stocks. Else perhaps bonds may be better.
If you buy stock hoping that you can sell it for a quick profit because of the daily or monthly swings in price, then you are gambling rather than investing. You are trying to guess better than the public, including professionals, how the price will change.
For long term investing, buy quality stocks and hold on to them. When you hold these over a period of time, the share prices will go up for a real reason - the companies are earning money every year and becoming more valuable. This is not gambling; you are owner of a money making business.
If you save a portion of your income each payday and as it accumulates invest in stocks, over the course of several years you can grow very wealthy indeed. It is like hiring someone to get a job and earn money for you, and then using that money to hire more workers. Your money grows exponentially.
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You can, but you need to be realistic in doing so. Look for a mutual fund company that has a $500 minimum investment and start with a good US stock mutual fund. Then build from there.
The problem with investing in individual stocks with $700 is that commissions will kill you. Even scottrade, which is $7 to buy or sell, would be 2% (1% to buy since $7 is 1% of $700, 1% to sell at $7 per trade). In today's market, losing 2% cuts into your return way too much to ever make a consistent profit.
An IRA or a CD would be pretty safe investments. They don't necessarily have high yields but it's a good first investment. Starting an IRA early is always a good idea so that way when you are ready to retire you will have funds. A CD is also a good short-term investment (usually less than 5 years but a bank will have different lengths with different interest rates) and has a higher interest rate than a regular savings account.
Midas allow you to invest as little as $20. They are set up based on property and allow your portfolio to grow into property over a long period.
It was designed so ordinary people could invest much smaller amounts in a far safer medium - property, but even they make it clear you can still lose.
With small amounts of money you are better going out picking a horse in a race and putting the money on that. It will return far higher odds than any traditional short term investment.
Hello Ahmad, Assalamo Aleikum,
I invested starting with $800. I recommend you to try to save to $1000, and then open a small account with an online brokerage, such as Scottrade, Ameritrade...etc.. I recommend you to invest in stocks of course, and you can email me and I can give you some help with that, and maybe give some advice and tips for good stocks to buy now.
Invest, online, the $700 in No-Load Large company stock funds, like
Artisan Value Fund
Dodge & Cox Funds
T. Rowe Price Funds
Vanguard Funds
Visit each of them online, get their phone numbers, and call them. They will tell you how to do it.
Hold onto your investments forever. Don't sell unless you have an emergency need for the money. They'll be worth more in 50 years than they will in 10 years.
complex aspect check out into search engines like google that can help
