Investing question....is this possible/likely?

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Jeff7

Lifer
Jan 4, 2001
41,596
20
81
Originally posted by: her209
I would dump your girlfriend if she really believes that's the normal ROI.
Yeah, there we go. :D
I'm sorry, but why did "gold-digger" just pop into my head?
"Oh my god, he is making so much more than you. Why can't you be like him?"
If I could invest money and get 5x more, easily, I wouldn't be doing a work study job, and I wouldn't worry about student loans. Hell, I'd take out a few bank loans. I have no idea what interest rates are, but let's even say something crazy like 20%. I'll take out $25,000 in loans, invest it, and a year later have over $125,000. Pay off loan plus interest, and take out another loan for even more money, say $50,000. I could retire tomorrow if I wanted to.



Originally posted by: ultimatebob
It is possible? Yes.

Is it likely? Hell no!

Is it likely that that he'll lose almost all of your money if you let him invest it the same way? Very!
Exactly.



Originally posted by: CaptainKahuna
Sounds like some kind of Ponzi scheme (Wikipedia link)to me. Your GF's brother was probably just lucky to get in and get out early.

Your GF also sounds like she has no idea how investing/finances work. Don't let her near your bank account.

Plus, are you sure the guy is an accountant? Normally you would need a broker for something like this.

Smells fishier than a Siamese whorehouse in rainy season.
Lots of good advice in this thread. :D
 

compuwiz1

Admin Emeritus Elite Member
Oct 9, 1999
27,112
930
126
If is sounds too good to be true, make up your mind right now that it is.
 

Alphathree33

Platinum Member
Dec 1, 2000
2,419
0
0
You could turn $600 into $3000 in one day (i.e. tomorrow - Monday) trading options, futures and other derivatives.

You could also much more likely turn your $600 into about twelve cents.

In fact, you can get almost ANY rate of return you want assuming you're willing to take on a boatload of leverage and hence risk.

"Hi, can I turn my dollar amount X into my dollar amount Y in Z amount of time?"

The answer is always yes, you can. You just have to be willing to pony up a ton of risk -- possibly even greater risk than the total sum of your investment.

For instance if you want to turn $1 into $1,000, you can go ahead and try.

All you need to do is borrow $9,999 from the bank and invest it. You now have $10,000. If you can make a 10% return after paying the interest on your loan, you've just turned your $1 into $1,000. Congrats. Now go start a website about how you turned $1 into $1,000.

OF COURSE, you could also make -10% on your investment. Now you've only got $9,000 and you owe $9,999. So you're in the hole -$999 and you only invested $1.

So go ahead and try to make whatever return you like... just understand the risk.

The market is not some magical "money generating" machine. It's just a bunch of equities and derivatives moving around from one owner to another at various prices. If you can buy said things at lower prices than you sell them, then you'll make money. It's just a game that some people are good at playing.

EDIT - OH and one CRITICAL POINT to remember. The money people make on the market comes from... wait for it... OTHER PEOPLE IN THE MARKET!!!

This means that if there were some secret thing that "always" made a certain big return and everyone knew it, then everyone would make money on it and no one would lose money on it... and that's impossible, because the money must come from somewhere.

I've made about 400% on my investments in the past 6 months BUT I:
1) Have lost money sometimes due to bad trades and bad luck
2) Have read a TON and know exactly what I'm doing
3) Spend a lot of time watching the markets and doing technical analysis
4) Have a very high risk tolerance

Does this mean that "you too can make 400% in six months, guaranteed!!!" No, absolutely not. But if you wanted to TRY, I could point you in the right direction.

Be prepared to spend at least 20-30 hours reading in a quiet library, at least 1-2 hours a day watching the market, and be prepared to lose at least $10,000 before you make $1. And after all of that, be prepared that you might never make that $1. =)
 

everman

Lifer
Nov 5, 2002
11,288
1
0
That's a terribly small amount of money to "invest." And based on the very short term, and extremely high rate of return, I'm inclined to call it either gambling or a scam.
The risk and reward usually tend to balance out, the risk here is probably very high.