Need a high risk option for $250

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jwhiteker
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Need a high risk option for $250

Post by jwhiteker »

I have a diversified retirement plan in place. I'm just looking to take some extra cash and play some market swings and such. All of the online traders want a $500 initial deposit. I'd rather start with $200-300. Any advice would be greatly appreciated. This is monies I have previously set aside for sports betting and such which has taken me for a somewhat unpleasant ride. Any advice would be highly regarded.

- JDUB
runner3081
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Re: Need a high risk option for $250

Post by runner3081 »

I would go and enjoy a nice dinner or maybe do a exotic automotive driving event. That way you will at least get something out of it before it disappears.
bloom2708
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Re: Need a high risk option for $250

Post by bloom2708 »

If it costs $8 to execute the trade for $250, you are already 3.2% in the hole.

Now you need a big gain just to break even. There have been other threads like this.

Go to your favorite casino. Play $125 in $5 slots. 25 pulls. Eat a nice meal with the other $125.

Either that or just buy more of what you have already.
Jack FFR1846
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Re: Need a high risk option for $250

Post by Jack FFR1846 »

Open an account at TDAmeritrade (there's no minimum). But 2 shares of VTI. I'm not very adventurous.

But wait....now refer your wife. Have her open a Roth and put in the max for the year. You now get a $200 bonus. Buy another share of VTI. Do you have any kids of age? If yes, repeat the above. Look at the return you're getting!
Bogle: Smart Beta is stupid
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arcticpineapplecorp.
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Re: Need a high risk option for $250

Post by arcticpineapplecorp. »

jwhiteker wrote: Thu Aug 17, 2017 12:34 pm I have a diversified retirement plan in place. I'm just looking to take some extra cash and play some market swings and such. All of the online traders want a $500 initial deposit. I'd rather start with $200-300. Any advice would be greatly appreciated. This is monies I have previously set aside for sports betting and such which has taken me for a somewhat unpleasant ride. Any advice would be highly regarded.

- JDUB
Welcome to the forum.

Extra money? So you're maxing out your 401(k)? You're maxing out your IRA? Your maxing out an HSA? Your maxing out a 529 (if you have kids)? You've paid off the mortgage entirely and own your home free and clear? You're donating to your favorite charities?

The reason I think this is not the case is because you're trying to play with small potatoes ($200-$300). If you maxed out all the assets above and paid off your house, wouldn't you have more money to "play" with than $200?

How much do you think you'll actually net with a $300 investment? Since it's not likely to be life changing, then why bother with it at all and instead focus on real investing, not "playing" the market swings.

How does one "play some market swings and such"? Do you understand how capital gains work? If you plan to buy/sell according to market swings then you're likely holding your assets less than a year which means you'll pay higher capital gains taxes...that is, if you actually make money (not likely). Not smart.

Finally, if you "need" a high risk option, this confirms my belief that you're not getting the real important stuff done (like 401k, IRA, etc). If you were, you wouldn't need a high risk option. People who undersave, believe they need a high risk option to make up for their lack of discipline. Unfortunately, these high risk options (like market timing, trading, etc.) tend to end very badly. Best of luck though.
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Pajamas
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Re: Need a high risk option for $250

Post by Pajamas »

With just a couple of hundred dollars, transaction costs would eat up any gains. You're almost sure to lose. You'd probably be better off at a casino or race track or even buying lottery tickets.
Eric76
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Re: Need a high risk option for $250

Post by Eric76 »

arcticpineapplecorp. wrote: Thu Aug 17, 2017 4:52 pm
jwhiteker wrote: Thu Aug 17, 2017 12:34 pm I have a diversified retirement plan in place. I'm just looking to take some extra cash and play some market swings and such. All of the online traders want a $500 initial deposit. I'd rather start with $200-300. Any advice would be greatly appreciated. This is monies I have previously set aside for sports betting and such which has taken me for a somewhat unpleasant ride. Any advice would be highly regarded.

- JDUB
Welcome to the forum.

Extra money? So you're maxing out your 401(k)? You're maxing out your IRA? Your maxing out an HSA? Your maxing out a 529 (if you have kids)? You've paid off the mortgage entirely and own your home free and clear? You're donating to your favorite charities?

The reason I think this is not the case is because you're trying to play with small potatoes ($200-$300). If you maxed out all the assets above and paid off your house, wouldn't you have more money to "play" with than $200?

How much do you think you'll actually net with a $300 investment? Since it's not likely to be life changing, then why bother with it at all and instead focus on real investing, not "playing" the market swings.

How does one "play some market swings and such"? Do you understand how capital gains work? If you plan to buy/sell according to market swings then you're likely holding your assets less than a year which means you'll pay higher capital gains taxes...that is, if you actually make money (not likely). Not smart.

Finally, if you "need" a high risk option, this confirms my belief that you're not getting the real important stuff done (like 401k, IRA, etc). If you were, you wouldn't need a high risk option. People who undersave, believe they need a high risk option to make up for their lack of discipline. Unfortunately, these high risk options (like market timing, trading, etc.) tend to end very badly. Best of luck though.
A guy isn't allowed to have some fun with a couple hundred bucks? Tough crowd here.
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Kalo
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Re: Need a high risk option for $250

Post by Kalo »

One thing to keep in mind with trading. If you are going to day trade you really need $25,000 so that when they force you to designate your account a day trading account, you will have the minimum required amount.

But I don't recommend it.

With less than 25k you will be limited in how often you can do round trip trades.

If you are going to invest it, you could try one of the brokerages that let you invest in fractional shares.

Kalo
"When people say they have a high risk tolerance, what they really mean is that they are willing to make a lot of money." -- Ben Stein/Phil DeMuth - The Little Book of Bullet Proof Investing.
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arcticpineapplecorp.
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Re: Need a high risk option for $250

Post by arcticpineapplecorp. »

Eric76 wrote: Thu Aug 17, 2017 6:18 pm
arcticpineapplecorp. wrote: Thu Aug 17, 2017 4:52 pm
jwhiteker wrote: Thu Aug 17, 2017 12:34 pm I have a diversified retirement plan in place. I'm just looking to take some extra cash and play some market swings and such. All of the online traders want a $500 initial deposit. I'd rather start with $200-300. Any advice would be greatly appreciated. This is monies I have previously set aside for sports betting and such which has taken me for a somewhat unpleasant ride. Any advice would be highly regarded.

- JDUB
Welcome to the forum.

Extra money? So you're maxing out your 401(k)? You're maxing out your IRA? Your maxing out an HSA? Your maxing out a 529 (if you have kids)? You've paid off the mortgage entirely and own your home free and clear? You're donating to your favorite charities?

The reason I think this is not the case is because you're trying to play with small potatoes ($200-$300). If you maxed out all the assets above and paid off your house, wouldn't you have more money to "play" with than $200?

How much do you think you'll actually net with a $300 investment? Since it's not likely to be life changing, then why bother with it at all and instead focus on real investing, not "playing" the market swings.

How does one "play some market swings and such"? Do you understand how capital gains work? If you plan to buy/sell according to market swings then you're likely holding your assets less than a year which means you'll pay higher capital gains taxes...that is, if you actually make money (not likely). Not smart.

Finally, if you "need" a high risk option, this confirms my belief that you're not getting the real important stuff done (like 401k, IRA, etc). If you were, you wouldn't need a high risk option. People who undersave, believe they need a high risk option to make up for their lack of discipline. Unfortunately, these high risk options (like market timing, trading, etc.) tend to end very badly. Best of luck though.
A guy isn't allowed to have some fun with a couple hundred bucks? Tough crowd here.
Fun doesn't equal "Need a high risk option", right? He NEEDS a high return (that's why he's taking high risk right? Otherwise why take high risk if you don't need high return?).

He's admitted he's gambling and been losing at that. So perhaps he NEEDS a high risk option to make up for his gambling losses. Does this sound like "fun" to you? He's not been having "fun" because he's been losing at gambling and "betting and such which has taken me for a somewhat unpleasant ride". Last I checked, the term "unpleasant ride" is not listed in the dictionary under "fun".

And he's likely to not have "fun" by "playing some market swings and such". So I ask you, where's the fun in all this? Where is it fun to lose one's money, especially money that he NEEDS and because he NEEDS it, he is willing to take high risk, and probably result in high losses?

By the way, for the OP--What is the "and such" you referred to twice? ("betting and such", "play some market swings and such". It's the "and such" that worries me.
Last edited by arcticpineapplecorp. on Thu Aug 17, 2017 7:23 pm, edited 2 times in total.
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rmelvey
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Re: Need a high risk option for $250

Post by rmelvey »

Check out bitcoin. It has some wild swings so you certainly won't be bored 8-)
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Re: Need a high risk option for $250

Post by LadyGeek »

I removed quite a number of off-topic posts. As a reminder, see: Please Do Not Bite the Newcomers
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F150HD
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Re: Need a high risk option for $250

Post by F150HD »

Long is the way and hard, that out of Hell leads up to light.
lazyday
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Re: Need a high risk option for $250

Post by lazyday »

Some might say the real risk is that you get lucky, make a good return, and think you have real talent.

Anyway, if you can't meet the minimum elsewhere, maybe you have enough for some DRIP or direct stock purchase plans? Would need some patience compared to online trading.
Eric76
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Re: Need a high risk option for $250

Post by Eric76 »

arcticpineapplecorp. wrote: Thu Aug 17, 2017 7:18 pm
Eric76 wrote: Thu Aug 17, 2017 6:18 pm
arcticpineapplecorp. wrote: Thu Aug 17, 2017 4:52 pm
jwhiteker wrote: Thu Aug 17, 2017 12:34 pm I have a diversified retirement plan in place. I'm just looking to take some extra cash and play some market swings and such. All of the online traders want a $500 initial deposit. I'd rather start with $200-300. Any advice would be greatly appreciated. This is monies I have previously set aside for sports betting and such which has taken me for a somewhat unpleasant ride. Any advice would be highly regarded.

- JDUB
Welcome to the forum.

Extra money? So you're maxing out your 401(k)? You're maxing out your IRA? Your maxing out an HSA? Your maxing out a 529 (if you have kids)? You've paid off the mortgage entirely and own your home free and clear? You're donating to your favorite charities?

The reason I think this is not the case is because you're trying to play with small potatoes ($200-$300). If you maxed out all the assets above and paid off your house, wouldn't you have more money to "play" with than $200?

How much do you think you'll actually net with a $300 investment? Since it's not likely to be life changing, then why bother with it at all and instead focus on real investing, not "playing" the market swings.

How does one "play some market swings and such"? Do you understand how capital gains work? If you plan to buy/sell according to market swings then you're likely holding your assets less than a year which means you'll pay higher capital gains taxes...that is, if you actually make money (not likely). Not smart.

Finally, if you "need" a high risk option, this confirms my belief that you're not getting the real important stuff done (like 401k, IRA, etc). If you were, you wouldn't need a high risk option. People who undersave, believe they need a high risk option to make up for their lack of discipline. Unfortunately, these high risk options (like market timing, trading, etc.) tend to end very badly. Best of luck though.
A guy isn't allowed to have some fun with a couple hundred bucks? Tough crowd here.
Fun doesn't equal "Need a high risk option", right? He NEEDS a high return (that's why he's taking high risk right? Otherwise why take high risk if you don't need high return?).

He's admitted he's gambling and been losing at that. So perhaps he NEEDS a high risk option to make up for his gambling losses. Does this sound like "fun" to you? He's not been having "fun" because he's been losing at gambling and "betting and such which has taken me for a somewhat unpleasant ride". Last I checked, the term "unpleasant ride" is not listed in the dictionary under "fun".

And he's likely to not have "fun" by "playing some market swings and such". So I ask you, where's the fun in all this? Where is it fun to lose one's money, especially money that he NEEDS and because he NEEDS it, he is willing to take high risk, and probably result in high losses?

By the way, for the OP--What is the "and such" you referred to twice? ("betting and such", "play some market swings and such". It's the "and such" that worries me.
Many people find it fun to gamble. Many people blow through 200-300 in a night on the town. He's not talking about day trading his life savings. I don't see the big deal.
financeidiot
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Re: Need a high risk option for $250

Post by financeidiot »

With only $250 you could probably just open a bank account and get a bonus from a bank worth $50 - $100 (might have to eventually deposit more than $250 but you'll get all your money back). For example, Schwab has a $100 bonus for becoming a new client right now. You could also try your hand at buying and reselling gift cards. It's quite easy to get a good return on small amounts of money (if you don't count the value of your time). It just doesn't scale at all.

DoctorofCredit.com is a good place to go if you want to look at more bank account opening bonuses, credit card churning, or gift card reselling.

If you're dedicated to stock trading, Robinhood charges no fees on transactions. They're also offering a free stock bonus (ex. 1 share of Ford) to you and a friend when they refer you. Just getting the free stock would be a good return on $250.
PandaBear
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Re: Need a high risk option for $250

Post by PandaBear »

Powerball tickets! That's probably high risk, right?
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Re: Need a high risk option for $250

Post by Valuethinker »

jwhiteker wrote: Thu Aug 17, 2017 12:34 pm I have a diversified retirement plan in place. I'm just looking to take some extra cash and play some market swings and such. All of the online traders want a $500 initial deposit. I'd rather start with $200-300. Any advice would be greatly appreciated. This is monies I have previously set aside for sports betting and such which has taken me for a somewhat unpleasant ride. Any advice would be highly regarded.

- JDUB
Bitcoin?
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arcticpineapplecorp.
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Re: Need a high risk option for $250

Post by arcticpineapplecorp. »

Eric76 wrote: Fri Aug 18, 2017 10:34 am Many people find it fun to gamble. Many people blow through 200-300 in a night on the town. He's not talking about day trading his life savings. I don't see the big deal.
Ok, let's hold two disparate ideas at once, shall we?

"Many people find it fun to gamble. Many people blow through 200-300 in a night on the town."(your words). I happen to agree with you on this point. Many people do like to gamble. Many (your word choice) means many, but by definition, not ALL. Otherwise you would have said, "Everybody finds it fun to gamble. Everybody blows through 200-400 in a night on the town". You did not say that, so we can assume that even you must agree that not everyone finds it fun to gamble.

Since not ALL find it fun to gamble (even if everyone else did, I do not. Therefore, not everyone can find it fun to gamble until I do too, along with everyone else), isn't it possible the OP is also NOT one of those people who find it fun to gamble? Didn't s/he say (his/her words) "This is monies I have previously set aside for sports betting and such which has taken me for a somewhat unpleasant ride"? Again, I ask you does that sound like the OP had fun gambling? No it does not. S/he had a "somewhat unpleasant ride".

Of course, you could counter that a rollercoaster is a somewhat unpleasant ride, but "many people" still enjoyed it (of course that does not mean everyone on the rollercoaster did). We do not know if the OP enjoyed his/her somewhat unpleasant ride with "sports betting and such". Only s/he can say.

Finally, to assume s/he's not talking about day trading his/her life savings, well...we do not really know that either. Sometimes people who start "playing some market swings and such" end up losing much more than they make. Yes s/he said s/he "has a diversified retirement plan in place". But we do not really know what that means, because s/he didn't tell us what that diversified retirement plan in place consists of. S/he hasn't responded to any of our posts. S/he hasn't told us if s/he's maxing out IRA/401k/HSA, etc. so we don't really know the details. Even Jim Cramer tells people that you can be diversified holding just 5 stocks but no more than 10:
Because of Cramer's 20% rule, a diversified portfolio necessarily contains at least 5 stocks, but it also contains no more than 10, otherwise you'll hold too many to do effective homework. source: https://www.cnbc.com/2014/03/12/cramer- ... tocks.html
What if that's the OP's idea of a "diversified retirement plan"? We do know s/he lost money gambling. We do know that was unpleasant, not fun (my words). We do know s/he feels some need to take high risk with "extra savings". We know s/he wants to "play some market swings and such". We don't really know why. We don't know if the OP will find losing his/her "extra savings" by "playing some market swings and such" as unpleasant, that is, not fun. Only s/he can say.

Have fun this weekend everybody!
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
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Tyler Aspect
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Re: Need a high risk option for $250

Post by Tyler Aspect »

Jack FFR1846 wrote: Thu Aug 17, 2017 4:40 pm Open an account at TDAmeritrade (there's no minimum). But 2 shares of VTI. I'm not very adventurous.

But wait....now refer your wife. Have her open a Roth and put in the max for the year. You now get a $200 bonus. Buy another share of VTI. Do you have any kids of age? If yes, repeat the above. Look at the return you're getting!
+1 for the 2 shares of VTI recommendation !
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stella
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Re: Need a high risk option for $250

Post by stella »

You could try picking a few single stocks with Robinhood, which doesn't charge any trading fees. A slightly better alternative than the casino :wink:
inbox788
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Re: Need a high risk option for $250

Post by inbox788 »

Kalo wrote: Thu Aug 17, 2017 6:46 pm One thing to keep in mind with trading. If you are going to day trade you really need $25,000 so that when they force you to designate your account a day trading account, you will have the minimum required amount.

But I don't recommend it.

With less than 25k you will be limited in how often you can do round trip trades.
Yup. T+3 is a pain in the rear.

And yes, the fees will probably kill you, but if you're set on it, you might look into motif.com or robinhood.com as possibilities. Search the threads for their pitfalls and gotchas. (just noticed I didn't see posting just above this one until after I posted)
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Alexa9
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Re: Need a high risk option for $250

Post by Alexa9 »

I'd consider call/put options on a volatile stock. Bet it all on black, bitcoin, or lotto tickets are other solid options.
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Re: Need a high risk option for $250

Post by abuss368 »

Atlantic City!
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