5 ways to double your money

Who doesn't want to double their money?
Well everyone tries different investment strategies to double their money as early as possible.

However, to 2x your money is not a game of seconds it requires years of proper planning and a good investment strategy.

There are several schemes available in the market but here we will discuss some best and most popular investment strategies to multifold your income.

Ways to double your income

Here, we have listed down 5 investment strategies that will help you to double your money. 

1. Stock market 

One of the best and most popular modes to make money is the stock market. The investment made in the stock market always provides a high rate of return.

Well, not denying the fact that buying shares comes with a lot of risks also but the investment in the share market can certainly give a higher rate of return and give a tremendous opportunity to generate a significant amount.

As people say, higher risk results in higher returns. At the same time, it is also equally important to study the technical and fundamental aspects of the stock market.

As here the flow of the stock market depends on the market conditions which are volatile,
Hence it is advisable to invest in repeated and profitable companies.

You can invest in blue-chip companies which can increase the chances of doubling your money within a short period of time.

2. Mutual fund

Mutual funds are also a popular way to invest if you don't have much time to do research and study the company whose shares you are willing to buy.

Mutual funds offer a variety of investments in stocks, bonds, commodities, etc.Its  type of investment that pools money from a group of investors.

 It's like having a small stake in all the investments included in a mutual fund. Mutual funds are one of the significant investment plans as they have the potential to grow over time.

This investment option generates a higher return as compared to investment on stock but the risk is dependent on the tenure of funds and the strategies adopted by your fund manager.

Well, mutual funds come in different varieties like debt funds, equity funds, hybrid funds, open-close-ended funds, etc.

You can also invest in mutual funds through SIP, which will help in providing flexible and systematic opportunities to earn over a period of time.

3. Real estate

Real estate investment is another smart investment option. This is one of the traditional ways to double your money.

Buying real estate demands a significant amount of capital initially but will generate great rewards in the long run.

One of the benefits of investing in real estate is that the value of the property can double in 6 to 7 years and additionally it can provide stable cash flow in the form of rent.

This is also true that an increase in the value of the property is dependent on various factors like location, infrastructure development, and neighbouring areas.

4. National saving certificate ( NSC )

The national saving certificate is one of the safest and most secure options issued by the Indian postal department. This is also one of the popular traditional forms of investment.

NSC has a fixed tenure and a fixed rate of interest. Another benefit of investing in NSC is that it can be used to avail loans from banks, also they are exempted from income tax up to Rs 1,50,000 and TDS is also not deducted from the amount received at maturity.

5. Option trading

While above all investment options are slow and steady, some investors are willing to take great risks and earn higher returns instantly for these kinds of investors, option trading is the best option.

Trading in options is one of the fastest ways to double your money but at the same time, it's also quite risky as compared to other investment opportunities.

The option is one of the types of derivatives instruments, it is a process of buying or selling an option contract where the buyer has a right to buy or sell an underlying asset at a predetermined price or strike price at a predetermined date. Here option traders have rights and not an obligation.

There are two major kinds of an options call option or put option 

Call option - it generally gives options traders the right but not an obligation to buy at a specific date and at a specific price at the expiration date. So basically option buyers make a profit When a stock rises above the strike price.

Put option - similar to call option this gives option traders the right to sell a stock at a predetermined price at a predetermined date.
So here option writer or seller earns profit if the stock price falls below the strike price.

Strategy to be adopted while trading in options.

Trading options is very risky and requires proper guidance and strategies to make a significant amount of money in less time.

Here we would discuss certain points that should be kept in mind while dealing in options

• Understand the basic of option trading

Yes, for trading options, it is necessary to have the basic knowledge of various terms used in options trading like strike price, option buying, options writing option expiry, bearish mode, and beast mode, etc.

Well in today's era, there is plenty of information, videos, and books available on the internet which can help you to study the various terminology of options trading.

• Testing your knowledge 

As now you have got the basic knowledge of the options trading process and terms, now it's time for testing.

 As a beginner, you should use an algo trading platform like speedbot which will help you in implementing various strategies that will help you to grow in the options trading market smoothly and you can earn profits in the options trading market significantly.

• Refer your strategy 

Now another step is to study and evaluate the various strategies. Speedbot offers option traders to create their own option algo trading strategy and also helps in backtesting your  strategy.

• Fund management 

Options trading is risky but can be profitable if done correctly. After studying various strategies, there is still no guarantee that any trading strategy will be constantly successful.

But below are various factors to be adopted while availing of option trading

• Focus on profit target 

The foremost advice is to have a predetermined entry and exit point before implementing any strategy as this will help you to make better decisions

• Stop loss

Always use stop loss,  while building any strategy one should not contribute beyond what you stand out to lose, if option traders wish to avoid loss then they should swear by stop loss as it helps in restricting option trader loss.

• Trade management 

It is crucial to Keep track of underlying security, trade cycles, sideways market, cycle identification, etc. above are the various factors that collectively help in taking effective decisions.

• Buying a call option is always preferable 

A long call option is one of the main strategies that is preferred by lots of traders to earn money. Generally, the call option has the highest profit potential as compared to the put option but as it is dependent on the type of market you are trading in as per investment strategy sometimes a put option can also yield better results.

To conclude, options trading is a structured process that demands learning, research, skill, and discipline. SpeedBot helps make your trading journey smarter and more efficient.

Wrapping up

So, above were some of the methods to double your money, however, there are several other ways also but in the end, it is important to consider your Affordability and risk appetite before reaching a final decision.

Also, one of the things which are extremely important is "patience" as money will not double overnight so be patient and use the above strategies to gradually double your money.