Get-Rich Starter Kit
Money doesn't grow on trees. But with the right investment strategy, you'll still wind up with plenty of green.
Still wondering what to do with that tax refund? How about investing in the stock market? (Yes, even in this pitiful economy). To get you started, we asked Cody Willard, a former hedge-fund manager and the host of FOX Business' Happy Hour, what you should do with that $1,000 burning a hole in your pocket.
1. Buy what matters to you.
"Research a few industries you're interested in and see what sounds promising," says Willard. Then invest your money in that sector-rather than something you don't care about.
2. Decide how much you can bear to lose.
The value of your portfolio will inevitably drop. Prepare for it. "Before you invest a dime, decide how much you can stand to lose," Willard says. "By setting a limit, you'll keep yourself from worrying over unavoidable dips in the market while still preventing yourself from slipping into a financial hole."
3. Be conventional.
By the time CNBC touts a stock or financial trend, it's old news. Why? Because millions of other potential investors will react to it. Instead, flip the advice, and seek out the next hot investment.
4. Plug your ears.
There is such a thing as too much information. There are millions of traders, making and losing trillions of dollars a day, and 99.9% of whatever happens will have little to no impact on your investments.
5. Have some balls.
There are no rules to investing. To score big, you have to take risks, he says, especially if you have grand ambitions. "The investing strategy that works for you will depend not only on the type of person you are today, but the type of life you want tomorrow," says Willard.