I bought speculative stocks and in less than 2 years all of that $3k was gone.
WHAT IF I had bought Coca Cola (my favorite drink at the time) and reinvested the dividends, added to it from time to time and held on till today? I missed out on tens of thousands (if not hundreds of thousands) of dollars in growth and income.
My recommendation is emulate Warren Buffett. In a nutshell: Buy (high) quality and hold for decades. He has made a fortune from AXP, IBM, KO, PG, WFC among many others.
Frequent trading, speculative stocks, options, selling short, gut feeling, and tips from your barber don't work for most people.
Only invest with money you won't need for 5+ years. If you are going to need the money, bank it, don't risk it.
Every investor has a "sad" story. Don't make your "sad" story a "total disaster" story.
Good Luck!
But in answer to your question: Buy an ETF and hold for decades. Such as DIA, SPY, VGT or DVY
The key is time. Even a very small investment will prove beneficial over time.
For example, I bought a $5000 whole life insurance policy when I was 18, Not the most profitable investment. It cost about 25 cents a day. Now 52 years later) it has a cash value of about $40,000 and I don't even have to pay the premiums any more.
The point is that even a tiny investment over enough time will prove significant.
If you are going to buy equities (stocks) a long term time frame is best. If you are going to speculate in equities (short term) you will probably lose some or most of your capital. If you are not an expert in stocks and from your question we can assume as much, then an equity index mutual fund is your best option.
Mutual Funds
Start a 401k with your employer. Open an IRA.
AJ is right - mutual funds.
Build yourself an emergency fund 1st. Put 6 months of living expenses in there.
funds
I was looking into stocks, but I don't have enough to really have an advantage. What are some investments that could be very beneficial to me? I would prefer short term, but long term is accepted as well.
