Investing $100, Making $1,000 A Day: Is It Possible?

When most of us have $100 USD in hand, we have a very hard time thinking about how to use them to generate more money. Frankly, it's already hard enough to think about how to use them effectively.

Even if we put those $100 in a high-yield savings account, we could be waiting years for the account to generate anything through interest.

However, what if I told you that you can actually do a lot with those $100?

In this article, we'll go through the steps you need to take in order to turn those $100 into $1,000 in a single day. Keep going and, before long, you'll have made $100K in less than a year.

Is Investing $100 To Make $1,000 A Day Possible?

Yes, it's possible, but it's very, very hard. Any investor that wants to do this must be very active, disciplined, and creative. It's almost like having a full-time job, only in this case, you're doing it on your own terms.

You also need to have the right strategy: investing in GICs won't get you to $1,000/day anytime soon.

The steps we cover in this article are meant for investors who can use all the tools at their disposal to reach their full potential. This means defining strategies, creating investment plans, and, most importantly, being extremely well-informed.

It's worth mentioning, however, that keeping updated with financial news is hard to do on your own. We recommend subscribing to a robo advisor to turn investments into passive income or a financial newsletter to simplify research and spend more time investing your money.

The role of an investment newsletter is to keep investors up to date with the latest financial news. Users can read crucial information in less than 20 minutes and gain enough knowledge to create better investment plans.

The faster you can get your hands on high-quality, up-to-date knowledge, the better your investments will become.

What Do The Most Successful Traders Have In Common?

When an investor becomes successful, it's usually because that person fits a certain profile in the industry. Those successful investors tend to have these characteristics as part of their investment plans:

• Discipline: Recognizing earnings (or losses) and not pulling out of investment too early (or late).
• Trading Risk Control: Learning when an investment is getting too risky or less profitable.
• Emotional Intelligence: The ability to not let emotions get in the way of making decisions, even in the direst of situations.
• Intuition: Predicting what will happen thanks to previous knowledge of the market/global events.

If any new investor learns to have each of these characteristics, they're already on their way to a brighter financial future.

Investing $100, Making $1,000 A Day: Step-By-Step

Here are the steps you need to take in order to make $1,000 by investing $100 a day.

Step #1 Have A Trading Plan

The first thing needed for this plan to work is developing a strategy. This strategy then becomes an investment plan with clear goals, alternatives, and parameters to follow when it doesn't go as planned.

What Makes A Good Trading Plan?

• Having an objective: This requires defining goals, capital, risk, schedules, and markets in which to invest.
• Having an analysis method: Choosing between preferred analysis methods, those being charts, different financial analyses, news, and more.
• Making a systematic review of the trading plan: Once the first version of the plan is in use, it'll need to be ironed out to correct any flaws you notice as you go along.

How Can I Make My Trading Plan Successful?

• Set rules: This allows for the plan to not deviate from its initial goal.
• Analyze the stock market thoroughly: Starting something without a plan is planning to fail, and it's hard not to succeed at investing if you know how the stock market works.
• Find the best entry and exit times in the stock market: Defining financial objectives and instruments to trade will help you know what to do during any trading session.
• Manage your emotions: Strive to eliminate subjectivity in decision-making.
• Don't overdo it: Any day trader is likely to want to buy more instruments to compensate for losses. Avoid this at all costs.
• Manage risk: Choosing the right level of risk is essential to determine the amount of capital to invest.

Step #2 Get Acquainted With Trading Strategies

In the trading world, there isn't a single and easy method of earning money. This means that different strategies adjust different financial objectives. Here are some of the most commonly used strategies for trading:

• Trend trading: In this strategy, investors make profits by studying prices in the long term. If the trend is bullish (prices are expected to rise), investors will take a long position and buy the asset. If the trend is bearish (prices are expected to drop), investors will take a short position by selling their assets.
• Price patterns: This strategy consists of taking advantage of short-term price patterns. These investors are more interested in detecting small reversals in advance and operate to benefit from small movements.
• Scalping: This strategy consists in carrying out a large number of operations that remain open for a very short time. It is a short-term trading strategy that makes you earn small but frequent profits, and it focuses on achieving a high rate of profit in the long term. Scalping requires a very strict exit strategy since losses can quickly offset benefits.

Investors can use each of these trading strategies separately or all at once. Keep in mind that a prior in-depth analysis of the financial assets is needed so that you can choose the strategies that best suit the situation.

Professional traders test each of these strategies with historical data and they invest their capital whenever they find patterns. So, it's possible to multiply those initial $100 to $1,000, it just needs to be under very strict circumstances.

What Do You Invest In, And Where Do You Do It?

Even though this adventure started with only 100 USD, you'll see how this capital is going to increase. Your initial investment plan will grow step by step based on your ability to invest.

There are several low-cost financial instruments that you can access, and these will allow you to diversify your portfolio. For example, options, ETFs, and CFDs are surprisingly inexpensive.

Finding the right platform in which to invest money online is also crucial. Capital is one great online broker I recommend for beginners and experienced traders alike.

Another good online broker is Robinhood, which allows investing with an app in a large number of financial instruments. Opening an account at Robinhood is very easy and does not need minimum opening amounts. We particularly recommend Robinhood for trading financial instruments such as ETFs.

There are also platforms dedicated to financial derivatives like Tastyworks, an American broker focusing on options trading. Tastyworks does not require a minimum deposit.

When it comes to choosing a broker, though, we believe that the best one as of writing this post is Capital. Capital is a zero-commission broker that excels in all the right places and is a great tool for beginner traders who want to start investing quickly and securely.

Does Day Trading Work?

The short answer is yes. However, it takes a lot of discipline to carry it out effectively. It's a way of trading that involves risking capital with a chance to win or lose money really quickly. However, many day traders have managed to be profitable by following a trading plan.

How To Start Day Trading With Only $100?

With $100 USD as an initial investment, it's possible to carry out daily operations with Contract for Differences (CFDs). CFDs allow taking advantage of long and short positions.

The interesting part about CFDs is that users will also be able to use leverage, which practically means trading as if you had more capital invested.

Here's another way to do the same:

Using A Margin Account

Peer-to-peer lending margin accounts allow you to borrow money from your broker with the intention of having much greater capital in the future by exploiting the opportunities currently available in the stock market.

For example, if a certain financial instrument such as CFDs has the potential to double its price in certain circumstances, a margin investment account could turn $100 USD into $200 to invest in those. However, be aware that margin accounts are a double-edged sword: they can be extremely profitable, but they can also lead to extreme losses.

For instance, imagine you had the leverage of 5 times your initial $100. In other words, you have $500 USD as initial capital. Now let's say you invest in 100 CFDs that cost $5 each, using all of your capital to invest. If the price of that instrument suddenly changes to $6 instead of $5, you've made a 20% profit on your investment and you have $100 more in your bank account.

However, if the price of that CFD suddenly drops to $4 instead of $5, you've lost 20% of your total investment and now have only $400 to keep trading. If no leverage was done in this same operation, the earnings and losses would have been $20 each. That's how powerful and dangerous leverage is.

Leverage is one of the tools that can probably lead to making $1,000 a day from investing $100. However, it's extremely risky and it requires a meticulous investment plan in order for it to work efficiently.

Investing $100, Making $1,000 A Day: Complement Your Strategy

Once an investor has a strategy that works, all that's left is to optimize it or help that strategy go further. To do this, we suggest using robo advisors and seeking financial advice from experts.

#1 Robo Advisors

Robo advisors are AI-driven software programs that invest money for you. They have digital platforms that provide an automated, algorithm-driven financial planning service with minimum human supervision. Their services even include automatic rebalancing and tax optimization.

Even though human intervention is minimal, many providers still offer to have human advisors available so that they can answer any questions you might have.

How Do Robo Advisors Work?

What robo advisors do is automatically select investments and build a diversified portfolio that is tailored to your financial needs. Once funds are invested, the software will automatically make changes to the investments to align with the portfolio that you want.

Some robo advisors are known for even making tax-loss harvesting, which is the process of making trades automatically to help reduce taxing bills, which ends up saving money automatically.

Something important to mention is that most robo advisors will divide their investment portfolios by risk. Therefore, investors can choose anything from a conservative portfolio to an aggressive one.

How Much Do Robo Advisors Cost?

Each robo advisor has a reasonable service fee that can be either a fixed monthly fee or a percentage of assets earned. Keep in mind that with a robo advisor, you're paying a service fee and you’re also paying the expenses of the investments used.

For robo advisors that charge a fixed monthly fee, that fee can typically range from around $15 to $200 per month depending on the size of the portfolio that the investor needs. This may be significantly less than what a financial advisor charges, depending on the size of your portfolio and other factors.

Choosing a robo advisor can depend on many things, like how much money you're willing to spend on one. However, if you want the best of the best when it comes to robo advisors, we recommend taking a look at Wealthsimple. It's the best-equipped robo advisor in Canada, and it manages your investments using a world-class financial team.

#2 Do You Really Need Help From Experts?

A self-made strategy can lead an investor to great heights, but when you seek professional financial advice in addition to a great strategy, you're granting it a bigger chance of success.

When it comes to expert help and informing investors, we can't recommend Capitalist Exploits enough. It's currently the investment newsletter/advisor company that offers the most thorough recommendations while still keeping investors informed in the most pertinent global news.

We recommend the financial services of Capitalist Exploits because it will allow you to invest your capital in the most profitable opportunities with the least possible risk. Also, the experts at Capitalist Exploits track each opportunity globally so that you can diversify your portfolio and increase your capital.

In Summary

• Investing $100 and making $1,000 a day is possible. However, to achieve this, the investor must be extremely informed, emotionally intelligent, and disciplined.
• Making the best decisions comes in part by knowing the playground, which is why expert advice is so important.
• Every strategy or investment plan needs to be reviewed every so often to keep it at its maximum efficiency.
• Advisors will tell when there's a pattern or a trend to follow, but you will start to see these patterns on your own sooner or later.
• Robo advisors can be a great way to invest safely and save money automatically.

We recommend a reputable and reliable investment advisor. If you're just started investing and don't want to be exposed to high risks, we recommend that you join Capitalist Exploits today for the following reasons:

• Capitalist Exploits provide an incredible amount of information about financial markets that help beginners learn
• Capitalist Exploits is focused on identifying high-return, low-risk investment opportunities, which is exactly what someone who is just starting on needs
• The level of asset diversification offered by Capitalist Exploits will allow any investor to achieve a huge and successful portfolio.

So, are you ready to start investing and achieve financial freedom?