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Investing with small amounts of money

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Thread replies: 26
Thread images: 2

I'm a NEET that has only $500. I often hear on here that investing is useless without tens of thousands, what can you say about these methods then?
-matched betting
-sports betting
-binary options
-poker online
-online casinos
Is it worth trying to make some profit off them?
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Buy ethereum
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>>1842475
>I'm a NEET that has only $500

margin trading.
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>>1842475
No everything you listed is rigged or has bad odds.

Best thing on that list is binary options but vanilla options are more flexible and have a higher return.

>vanilla options cost to much
OptionsHouse is a good broker.

>binary options
>price movements on a small set of products
>vanilla options
>1000s of underlying
>long and short exercise
>greek trades
>long and short premium trades
>write options
>option spreads (options that offset each other)
>strangles, stradles, butterflies, condors

Use your NEET time to go through the free classes on CBOE for a week and learn about stocks. Then use your $500 to go long/short.
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>>1842475
No anon. Invest in real things and then down the road when you (hopefully) have tens of thousands to invest you will also have the experience you gained from all your smaller investing.
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>>1842475
Spend your money on finding a job

if you're not interested in getting a job you'll never have a significant amount of money anyway so it doesn't make a difference if you gamble it away or spend it on anime figurines
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>>1842486
interesting, last time many people shouted that binary options is the real scam, but you seem knowledgeable
>>1842500
i already make money online short term, I couldn't stand wagecucking, if i won't be able to freelance then so be it, i'll never have money
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>>1842479
i was thinking about it, but i need to do more research
>>1842482
interesting, I'll look into that.
>>1842490
what do you mean real things? What small things can I invest in, in real life?
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>>1842522
Binaries can be if they're not regulated by the FTC. I've heard of Chinese sites draining accounts.

Like I said, you don't have manueverability. They go up or down and you bet on by how much. You're trading a normal distribution but people like them because your loss is capped.

Vanilla options are more complex but offer you much more flexibility. For example I can buy a call and a put on the same strike price and have a neutral strategy. Meaning, if it moves in large directions either way you make money.

Best part? A lot of strategies are cash only so you don't need margin.
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>>1842475
>-matched betting
No. Looks great in theory but does not work due to factors out of your influence (limitations, suddenly changed odds, business terms in fine print, locked accounts.....). Believe me, a waste of money and time.
>-sports betting
Not worth it. I wrote a post in the other sports betting thread, see catalogue.
>-binary options
Scam
>-poker online
You'll lose money, too many good players with software/machine learning support.
>-online casinos
Hell no. Odds are against you.

>Is it worth trying to make some profit off them?
No.

Get a job.
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>>1842486

I'm researching options for a few months now and I still do not have a strategy worth trying on a demo account.

Really bad advice, especiall binary options which is a SCAM. There is a reason why the FBI has countless cases with binary options bullshit. Do not waste your time and money with a system that is designed to scam you.
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>>1842554
And what would you consider a good strategy?

Like I said in an above post you need to make sure they're exchange traded and regulated.

>going through a chinese broker

However, Binary options are a terrible security anyway.
If you think you consistently bet on hitting a strike price the you deserve to get scammed.

Money on vanilla options is made by writing options or understanding how pricing allows you to make money by approaching a strike price and then closing.

If you cant price or you don't want to write then you shouldn't be in options.
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>>1842475
Rate of return on capital is generally around 5%, so you can make 25 dollars a year by buying an index ETF of your choosing. What you should really do is get a job and then start putting a set percentage of your paycheck into the same index fund. You'll have your tens of thousands of dollars eventually.
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>>1842554
Also

Inb4
>he wants us to write naked calls

No. Google what a spread is
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>>1842557
This is the big question: How do you price options, inlcuding the 'risk'?

Risk is the big factor here and nobody is able to computate it yet. All models have the limitations and some are misunderstood by users of them. You only have approaches.
Like I said, I'm researching this shit for months now and it is not easy to understand, especially without a math background.
You have people using some version of the Black–Scholes–Merton formula and you have people saying it is the wrong approach.

There was a thread here yesterday with suggestions for movies and documentaries and some anon posted 'The Midas Formula '. Watch it and see how even experts/Nobel prize winners 'failed'.

You can make a living with options, but do not put your money into something you do not understand, especially its limitations and aspects out of your control!
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>>1842475
out of all those, sports betting and live blackjack/poker are your best options. If you follow a sport, you have an advantage. I make money sports betting, roughly $500-700/week. gotta be smart and disciplined though. Poker is skill based, black jack can be beaten as well. just my $0.02
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>>1842475
Bet all your money on Le pen, she is paying 3.20.
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>>1842617
I agree with you, actually, which is why I don't write options. I wouldn't feel comfortable having to pay out more than I take in as profit.

Black-Scholes is only used for European options. Even then, it is rarely unmodified, like, for dividends. You do not need to solve the differential for a new Black-Scholes. That has been done for us with the modifications. I operate under the assumption that no financial/economic model is perfect. Look at CPI and you'll be amazed how much debate enters into that index. DJI is a price weighted index which comes with problems yet has been used for decades.

There are other models for American options like modified binomial trees.

You need to realize two things.
1. Options are not stock. They're going to be a lot harder to work with.
2. Stock are not priced perfectly either. Thats fundamentally what value investing is.

I'm not an arbitrageur so I don't look for mispricing between the underlying and the option series. I look at the stock and use the option as a mechanism to leverage myself cheaply. My primary concern is in the greeks.

tl;dr

Nothing is perfectly priced in equity. Go to fixed income if you want concrete models.
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>>1842475
You need to get more money, you're getting ahead of yourself... you need to wake up every day and work hard towards some goal, harder than you have ever worked. You need to do this every day and when you fail just start over, you will fail. Start over, work hard every day, have a clear obtainable goal. If you never give up, then eventually working towards a goal will become Habit. If you develop a habit of working towards success, success will be inevitable.

You need a goal that will get you more money, but not for moneys sake. Your goal should be making money to obtain ASSETS. Assets can be many things, including skills.

You should read some basic information on wealth creation.
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>>1842645
but i'm just a beta NEET that's afraid of work, i can't be a wagecuck
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>>1842791
Those are some nifty excuses and you'll notice I said nothing about getting a job anyways. You need to Earn by offering Value to the market. Something will never come from nothing, that is against every physical law.

There are plenty of legitimate ways to earn money online including trading, but you'll need to at least be a trader to do it. See what it always comes back to that word, YOU. You must change or your situation never will. Millionaires aren't millionaires because their net worth is in the millions, it is because they themselves have become millionaires, they make different decisions than the poor - and they have hard wired themselves to be this way. See being rich and successful has nothing to do with if you have $500 to start with or 10k, it is only about Choices and self Discipline.

https://www.youtube.com/watch?v=zj52FbQcVs0&t=420s
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>>1842522
You're never going to have money anyway then.

The fact you come here with $500 and think gambling is going to make you money (nevermind the fact $500 isn't shit for investing or gambling) shows your naivety. You better learn to make money doing something because despite what /biz/ will tell you no one here is day trading for a living and most people here are gambling on penny stocks and buttcoins.

The best thing you can do is find some sort of skill and market yourself. If you can freelance that's great, but remember the customer is still your boss. You can tell them to fuck off but you won't get paid. You're always somebodies bitch, might as well try to make the most of it.

Good luck, you'll need it.
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>>1842791
A special snowflake is what you are.
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>>1842475
I started with 500$ as well. Got that to $710 before I deposited more money.

I would say that dont waste your time trading. Find a good low cost method to make money online and use that $500 to start yourself off.

If you have patience, reselling goods is always good. Go to garage sales & online, find stuff and resell on eBay, Amazon, Craig's list, Facebook etc..

For example, a few weeks ago I picked up a GTX 1070 at college for $100 and gonna resell it or use it (not sure yet).
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File: 20170306_105048.jpg (3MB, 5312x2988px) Image search: [iqdb] [SauceNao] [Google]
20170306_105048.jpg
3MB, 5312x2988px
Pepecash
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>>1842816
I'm not a frequent visitor of this board but fucking hell thanks for sharing this video. I hope you will achieve your goals, anon.
Thread posts: 26
Thread images: 2


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