Multiply your money: asset guide and strategies to boost your investment

▶ Investment options that really work

If your goal is to grow your money over time, you need to know where to invest capital wisely. There are multiple ways to achieve this, and each has unique characteristics in terms of profitability, risk, and timeframe.

Stocks: the classic fail-safe

Stocks remain the favorite refuge of serious investors. When you buy a stock, you acquire a part of a company’s equity, which gives you two sources of income: price appreciation and dividends.

Types of stocks by classification:

• By geography: North American, European, Asian, emerging
• By sector: technology, utilities, pharmaceutical, retail, industrial
• By market capitalization: small cap, mid cap, large cap

What you gain investing in stocks: Stock titles have historically generated the highest returns. You can build diversified portfolios by combining companies of different sizes and sectors. Information about companies is accessible and widely available.

Risks you assume: Market manipulations can especially affect retail investors. Accounting information is not always transparent, and fraud can occur.

Commodities: tangible investment

Commodities represent the most basic trade: oil, gold, soy, coffee, palladium. They are high-volume assets that operate 24 hours and offer interesting arbitrage opportunities.

Gold is especially valued as protection against inflation. When your portfolio is exposed to USD, adding commodities can decouple and protect your investment.

Clear advantages: They are constantly traded, allow effective diversification strategies, and are easy targets for arbitrage.

Important limitations: High volatility and multiple external factors impact their prices. A pure long-term strategy is not viable in this asset.

Indices: easy access to multiple sectors

Indices group assets based on specific criteria, usually geographic or sectoral. The Spanish Ibex 35, the German DAX 30, and others provide quick access to entire economies.

Why investors prefer them: They allow direct and cost-effective entry into specific sectors or regions. They offer automatic diversification. Commissions are low compared to other products.

Their limitations: You have no control over which companies are included. Indices are reviewed infrequently and do not capture current trends with the agility that active selections could.

Cryptocurrencies: the asset of the 21st century

Bitcoin, Ethereum, and other cryptocurrencies have surpassed a trillion dollars in market capitalization. They are generated through blockchain technology and offer applications in DeFi and DApps.

Born in 2009 as an alternative to the monopoly of central banks. Today, they represent an ecosystem where users fully self-manage their resources.

Reasons to consider cryptocurrencies: They have been the most profitable asset over the past 50 years. They allow for fully personalized portfolios thanks to thousands of options available. They are not subject to political discretion. Bitcoin and similar assets have responded correctly to inflationary outbreaks.

Main challenges: They are currently the most volatile asset in the market. Technical knowledge is required to understand what a token is and why it has value.

Forex: the oldest market

Forex is the exchange of currencies, trading price differences between pairs like EUR/USD or GBP/CHF. It is the largest market worldwide, operating 24/7/365.

Strengths: Practically unlimited liquidity. Allows significant leverage. You can operate continuously without interruptions.

Weaknesses: You need leverage to achieve real results. Many macroeconomic factors affect prices.

▶ Principles you should never forget

The profitability versus risk binomial

Anyone promising gains without risk is deceiving you. The most volatile assets are also potentially the most profitable.

To compare intelligently, use the Sharpe Ratio: divide the asset’s return by its volatility. This answers the real question: at the same risk, which asset generates more return?

Let’s see a practical example: asset A offers 12% annual return with 9% volatility, while asset B gives 18% with 25% volatility.

• Sharpe of asset A: 12÷9 = 1.33
• Sharpe of asset B: 18÷25 = 0.72

Although B has higher nominal profitability, A is superior because it generates 1.33% gain per point of volatility versus 0.72% in B.

Remember: this ratio is only valid when comparing similar assets. Do not compare stocks with bonds using Sharpe because their volatilities are not comparable.

Time is your greatest ally

To multiply money, you need time. No one gets rich overnight (except by risking everything, which almost never ends well).

Two key principles:

1. The earlier you start, the greater your final results
2. Reinvesting interest generates exponential growth

Compound interest is your secret weapon. If you invest €100 at 10% annually, you earn €10 in the first year. If you reinvest that €10, in the second year you don’t just earn another €10, but €11, because interest is calculated on the accumulated capital.

▶ How to prevent your investment from turning into a loss

The right question is not how much money you want to make, but how much you can afford to lose. Work with amounts you can manage without stress. Never play “double or nothing.”

Few investors have natural intuition. Those who succeed share unwavering discipline and method that they never abandon.

Constantly remember: higher potential profitability always means higher volatility. It’s an unwritten but immutable law.

Modern tools help you: demo accounts, take profit and stop-loss orders. Use them without fail.

▶ Proven strategies to multiply your capital

Long only: patience as a virtue

Warren Buffett and other giant investors rely on this strategy. It’s based on Value Investing: buy undervalued companies and wait years for the market to recognize their true value.

It is profitable but requires long-term patience; quick trading is not of interest.

Long/short: neutrality with performance

Combine long positions (bets on the rise) with short positions (bets on the fall) to neutralize volatility. If you believe airlines will fall due to rising oil prices, you invest in both directions so that gains in one offset losses in the other.

It is complex to execute correctly.

Day trading: fast operations

Make multiple trades within a single day, capitalizing on quick movements. Requires constant screen monitoring and continuous connection.

▶ Boost your results with CFDs

Contracts for Difference (CFDs) allow operations that traditional investing does not easily facilitate: short positions, leverage, quick access to various assets.

If your intuition tells you that a certain asset will make a significant move in the short term, CFDs amplify your potential gains.

▶ The final formula to multiply money

There is no single magic recipe. The real secret lies in building a portfolio with profitable assets chosen not only for performance but for how they behave.

Everyone tolerates risk differently. Your best strategy is to gradually experiment with assets of variable risk, get used to them, and finally invest with real confidence.

The key is to start: test, learn, adjust. With time and discipline, you will see how what to invest money in stops being a frightening question and becomes your best financial habit.