The Sum to Start With

Updated: 07/28/2006 06:00
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Many investors often ask what sum is good to start with, while starting to invest. We may enlarge this question: what sum is the BEST to start with? Or just change this phrase - what sum is the best to start. We tried to answer these questions in this article.

Investment principle lies in creation of your fund of a passive moneymaking. Putting money into some definite place you receive a profit, despite you do not do anything. It sounds like a paradise, but it may easily turn into hell due to the risk of the biggest part of high-yield profit investments and small benefit from the biggest part of investments that are less risky. The most safe way of receiving a passive benefit is probably to make a bank deposit at 12% yearly. However, I’m not sure that it is so. Many of you may disagree.

HYIP – is again the most dangerous way of receiving a passive benefit. However, you may invest in arms traffic, drug traffic, or other illegal operations, which is risky itself, due to illegitimacy of such actions.

However, there are two factors that add some structuredness to world investment process. To play “seriously” at stocks, you need about 10 thousand dollars. To make your money useful for arms traders you should have a sum which would be interesting for them. To put it simple, there is a MINIMUM for you to start working.

But this minimum has two exceptions. For instance, there are brokers who open accounts starting with $20 – yes, it’s true. A tommy-gun may be well OK… let alone HYIP, where minimal levels for entering the program decrease to $1 or less!? Needless to say… one may start with any sum. And, as you see, it is possible to find a way out even having $10 only. But this is when you just want to invest them, because…

THE FIRST ANSWER. It is POSSIBLE to invest with any sum (starting with $1), in various spheres (because there are some with a really serious minimum, for instance in case with real estate you won’t be able to do anything unless you have at least $10 000).

However, noone does it like that for some reason. And we want to say you at once, anticipating the second answer – THIS IS NOT PROFITABLE. This is because the profit, which you receive after investing is measured in percents. And the problem is not the risk itself. I.e. in fact, $10 000 in the most risky business and less risky business is one and the same thing. If we mean “what to start from” in relation to risk. But if we speak of “what to start from” in relation to reasonability, we should mind a range of other reasons.

For instance, that you receive profit in a form of INTERESTS. Interests that derive from some activity in the sphere where you made a deposit. So, reasonability of investment can be measured according to a simple formula regardless of the sum:

PROFITABILITY LEVEL – RISK LEVEL * DESIRED PROFIT = THE SUM OF YOUR FIRST DEPOSIT

Of course, this is not a mathematical formula, but you may estimate your wish and your abilities (but here we assume that you have unlimited abilities, i.e. you may invest any sum.) As you see, the second answer suggests itself.

THE SECOND ANSWER. The sum that you SHOULD invest depends upon how much you want to receive. That’s all. Too simple. Of course, we may prompt how reasonable it is, but the person asking this question should understand that at least one reason is the most important to decide. This may be risk fear, or greed, or something like that. So each of you should decide how to operate his funds on your own.

Speaking about HYIP, I may assume that regardless of legends telling about wealth that derived from a dollar, it is conceitedly to start with such sum. Take into consideration that it will take MUCH TIME. And ten dollars do not seem to be enough, as it may seem. That’s why 100 seem to be better for your initial deposit. And $200, distributed among various programs will become a good base for a good earning.

The only thing that remains is fortune.


About the author

Lella Prior has been at HYIPNews for five years. She is an articulate, confident person who relishes challenges and working under pressure. Lella Prior has been taking much care about writing. The greatest strengths are the research, communication and writing skills Lella has. Thanks to the work at HYIPNews Lella Prior has an excellent opportunity to write good quality content.
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