Best Short Term Investments

Contributor, Benzinga

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The stock market’s daily all-time-highs can spell intimidation if you’re a new investor. On one hand, you want to participate, but on the other hand, there’s always a fear of “buying the top.”

Plus, with the abundance of educational material available on the web, coupled with Bitcoin and other spectacular cryptocurrency rallies, it’s no wonder many new investors feel left out.

If you’re a new investor and you’re ready to tackle a daunting investment environment, here are a few must-dos:

  1. Determine your time horizon and what your invested funds intend to be used for. New investors with a long-term time horizon may want to focus on growth and growth stocks. While these may not provide immediate returns, dividends may offer more capital appreciation in the long term.
  2. Figure out what type of investment will work best for you. If you’re retirement-ready or facing large capital expenditures (for example, putting kids through college or buying a new house) you may lean toward dividend-paying stocks. Hint: There are many listed issues that pay dividends in the three to five percent range, which beat the heck out of bank rates.
  3. Check out interest rates. Although interest rates have been on the rise and appear to be going higher, investors still face a relatively low-interest rate environment.
  4. Study the fundamentals of the market, plus know the business model and other characteristics of companies you’re considering investing in. This can be accomplished by viewing long-term charts showing price oscillations around a core value (due to investor sentiment, macros, etc.)

Don’t forget to evaluate the free cash a company has at its disposal.  For example, a flush-with-cash company such as Apple can easily raise its dividend, buy back more stock or withstand a downturn in the economy.

On the other hand, many biotechs have a high cash burn rate. Furthermore, if they incur failed drug trials, that could remain an ongoing concern.

Though investing in today’s roaring bull market is complex, there are still ways to develop an investment plan that suits your time horizon and investment style.

Good Short Term Investment Strategies

Here is a breakdown of short term investment vehicles and the risks associated with them:

Cryptocurrencies

  • Time Frame: 0-6 months, and longer
  • Risks: Volatile and can be illiquid

Some fortunate cryptocurrency holders saw massive gains in the year 2017 due to the unprecedented runs of coins like Bitcoin, Euthreum, and Litecoin.

Some of the key advantages of investing in crypto (in addition to the ease of opening an account) are the returns you can make from such a small investment. For instance, the value of gold rose roughly 18% over the past year in 2017. Google shares are up 24%. Some cryptocurrencies have had gains as high as 2000% in the past year.

get started securely through eToro’s website
Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Best For
Copy Trading
N/A
1 Minute Review

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

Best For
  • U.S. based cryptocurrency traders
  • Investors looking to CopyTrade other traders
  • Simple user interface
Pros
  • Several major cryptocurrencies and altcoins
  • Expansive network of social trading features
  • Large client base for new traders to imitate
Cons
  • Only 29 coins available
get started securely through Interactive Broker’s website
Best For
Low Fees
N/A
1 Minute Review

Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For
  • Detailed mobile app that makes trading simple
  • Wide range of available account types and tradable assets
Pros
  • Mobile app mirrors full capabilities of desktop version
  • Easy-to-use and enhanced screening options are better than ever
Cons
  • Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
Invest In Crypto securely through Gemini Crypto’s website
Best For
New Investors
N/A
1 Minute Review

Gemini is a cryptocurrency exchange and custodian that offers investors access to over 100 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. 

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best For
  • New investors looking for a simple mobile and web app
  • Day traders looking to use technical analysis tools
  • Users looking for a 1-stop-shop to buy, sell and store all of their cryptos
Pros
  • Easy and quick signups — can get started in as little as a 5 minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts
Cons
  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
claim free Bitcoin securely through Voyager’s website
Disclosure: *Other fees may apply.
Best For
Mobile Traders
N/A
1 Minute Review

Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users. 

When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments. 

Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike.

Best For
  • Cryptocurrency investors looking for a wide selection of supported projects.
  • Investors who prefer mobile trading.
  • Anyone interested in earning interest on their crypto investments.
Pros
  • Simple, straightforward and intuitive mobile platform
  • Wealth of investment opportunities
  • Allows users to earn interest on select crypto investments
Cons
  • Only available for mobile users — no desktop platform
  • Limited routes to contact customer service team

Options Trading

  • Time Frame: 0-6 months, and longer
  • Risks: Timing for entries/exits is critical

Options trading is actually quite similar to trading stocks. One key difference is that an option is a contract to buy or sell a stock at a price that has already been negotiated in a contract, and by a particular date.

Options also typically have much lower commissions, and depending on which brokerage you are using, they are typically pretty transparent about hidden fees. You can even choose a discount brokerage account if you are looking to trim costs even further. A major attraction to options is leverage, which gives you the ability to control much more stock via cheaper options than purchasing shares of the underlying issue. When purchasing options, you cannot lose more than your initial investment.   It’s not the same with stocks. Buying and holding stocks overnight on margin can result in steep losses if bad news comes out overnight.  

There are a number of options trading platforms that Benzinga has taken a look at. Take a look at some of our favorites.

get started securely through Interactive Broker’s website
Best For
Global and Active Traders
N/A
1 Minute Review

Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For
  • Options traders
  • Traders trading 24/7
  • Sophisticated investors
  • Access to International markets
Pros
  • Advanced trading platform & suite of options trading tools to create & execute sophisticated trading strategies
  • Fixed fees offer infrequent traders low, flat rate per contract, inclusive of all fees
  • Tiered fees offer active traders lower cost per transaction and possible exchange rebates for higher volumes
Cons
  • Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
get started securely through Pocket Option’s website
Best For
Professionals and Novice Traders
N/A
1 Minute Review

Pocket Option is an online trading app for binary options and forex. The web-platform, smartphone app and MetaTrader 5 software provide you access to over 100 different assets. It is legal and regulated in 22 countries, offering a diverse range of assets and providing useful tools for you to make informed investment decisions.

Best For
  • Investors interested in options trading and forex
  • Professionals and novice traders
  • Investors looking to learn
Pros
  • Over 100 assets including cryptocurrencies, stocks and commodities
  • Yield of up to 95%
  • Free demo account with $10,000
  • Free program; minimum deposit of $50
  • Secure and safe platform with 24/7 trading
  • Multi-language support and cash-back program
Cons
  • Regulated by the International Financial Market Relations Regulation Center (FMRRC) rather than a country’s own regulators
get started securely through TD Ameritrade’s website
Best For
Options Trading
N/A
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates
get started securely through Tradier’s website
Best For
Inexpensive Options Trading
N/A
1 Minute Review

Tradier is a high-tech broker made with the most active traders in mind. Tradier differentiates itself by using Application Programming Interface (API) technology to partner with popular trading software to offer a wide range of platform choices to Investors. Tradier brokerage offers integration with one of the widest ranges of platforms we’ve seen, including Esignal, Orion Multi Trader, Stockstotrade, 1Option, Evati, and many, many more. 

Tradier offers 2 pricing options — infrequent traders may want to opt for Tradier’s 0 Stocks and $0.35 per Options contract trading, while very active traders can often save money by opting into Tradier’s $10 monthly all-inclusive option and Equity, which cuts commissions entirely.

Tradier TradeHawk platform is exceptionally impressive, combining intuitive 1-click order placements with a vast range of indicators and charting tools. TradeHawk is also completely compatible with both Apple and Android mobile devices. Though we’d love to see Tradier expand into mutual funds and offer a bit more in the way of educational tools, the broker remains a top choice for advanced traders and those looking for enhanced customization options.

Best For
  • Very active options traders who would benefit from a flat-rate monthly charge instead of per-contract fees.
  • Advanced traders looking for a customizable broker with a wide range of platforms that can be integrated.
  • Prominent options traders get high-quality execution, real-time market data and subscription trading.
Pros
  • Wide range of integrated platforms provide an option for any trader.
  • All-inclusive per-month subscriptions available in lieu of per-contract commissions.
  • Platforms are powered by quality real-time market data and execution.
Cons
  • Newer traders may prefer a platform with fewer integration choices and a more streamlined approach.
  • No online mutual funds currently available.

Futures Trading

  • Time Frame: 1-3 years, and longer
  • Risks: Timing for entries/exits is critical

Futures initially were designed to be focused on agricultural commodities to allow farmers the ability to hedge against the prices of their crops before bringing them to market. They have since, however, expanded to cover a range of other assets, from gold and other precious metals to energy assets such as oil. Leverage is an important component in futures trading. In addition, the futures market is nearly a 24-hour market, so futures can be traded at night, which is handy if you have a day job, too.  

get started securely through Interactive Broker’s website
Best For
Trading Futures 24/7
N/A
1 Minute Review

Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For
  • Futures traders
  • Trading futures 24/7
  • Sophisticated investors
  • Access to international markets
Pros
  • Buy & sell futures at lowest commission rates
  • Hedge positions or act on price movements in 35+ financial markets worldwide
  • Trade futures side by side on a single screen w/ substitute asset classes in stocks, bonds, options
Cons
  • Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
get started securely through Optimus Futures’s website
Best For
Trading Micro Futures
N/A
1 Minute Review

Optimus Futures is a leading discount futures broker offering highly customized trading solutions geared towards cost-conscious retail traders with an eye for technology and personal service. Customers gain access to premium tools at no additional cost such as depth-of-market surface, footprint charting, and real-time news alerts along with a fully integrated trading journal. 

Users can register a trial version of their software to take a test-drive of the platform, unlocking many of the analysis and charting features including unlimited simulated trades. Traders can also leverage Optimus Futures 3rd party app integration, allowing you to choose the futures trading platform best suited for you.

Best For
  • Low account minimums, commissions, and margins
  • Futures & micro futures traders
  • Beginner futures traders
Pros
  • Unlimited simulated trading
  • Low day trading margins
  • Highly experienced and competent technical support
  • Customizable data fees and order clearing
Cons
  • Limited to derivatives trading like futures
  • The selection of data feeds and clearing firms can be overwhelming for newer traders
get started securely through TradeStation’s website
Best For
Futures Trading
N/A
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be

Day Trading Stocks

  • Time Frame: 0-6 months
  • Risks: High commissions

Day trading is the act of buying a financial instrument and then selling that within the same trading day. This practice is applicable to a number of asset classes including stock, options, futures, and currencies.

This practice was once exclusive to financial firms and professionals, but with advancements in margin and electronic trading, private individuals have the ability to day trade.

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Gainers

Session: May 18, 2022 4:00 pm – May 19, 2022 1:07 pm
Symbol Open Close Change Change % Volume
Buy SXTC Stock – SXTC
China SXT Pharmaceuticals
0.11 1.98 1.87 1660.00% 19.82K
Buy NURO Stock – NURO
NeuroMetrix
3.12 4.34 1.22 39.14% 45.99M
Buy VVPR Stock – VVPR
Vivopower International
1.07 1.45 0.38 35.48% 8.88M
Buy IMNM Stock – IMNM
Immunome
2.84 3.84 1.00 35.20% 13.42K
Buy NMTC Stock – NMTC
NeuroOne Medical Tech
0.61 0.81 0.20 32.76% 30.07K
Buy SIGA Stock – SIGA
SIGA Technologies
7.39 9.57 2.18 29.46% 28.58M
Buy GRAB Stock – GRAB
Grab Hldgs
2.53 3.19 0.66 26.19% 81.25M
Buy PEGY Stock – PEGY
Pineapple Energy
2.20 2.72 0.52 23.63% 21.93K
Buy IMAC Stock – IMAC
IMAC Holdings
0.85 1.05 0.20 23.41% 17.67M
Buy LVO Stock – LVO
LiveOne
0.65 0.79 0.14 21.41% 60.69K
Buy CYAD Stock – CYAD
Celyad Oncology
1.55 1.86 0.31 20.25% 13.53K
Buy BTCM Stock – BTCM
BIT Mining
1.64 1.96 0.32 19.20% 90.61K
Buy SPT Stock – SPT
Sprout Social
41.42 49.14 7.72 18.63% 63.37K
Buy STAF Stock – STAF
Staffing 360 Solutions
0.64 0.75 0.11 17.77% 90.74K
Buy LITM Stock – LITM
Snow Lake Resources
3.27 3.85 0.58 17.73% 42.01K
Buy WTMAR Stock – WTMAR
Welsbach Technology Metals Acquisition Corp. – one right to receive 1/10th of a share of common stock
0.14 0.16 0.02 17.73% 0.70K
Buy IMMX Stock – IMMX
Immix Biopharma
1.30 1.53 0.23 17.65% 1.17M
Buy BILL Stock – BILL
Bill.com Holdings
101.63 119.31 17.68 17.39% 2.95M
Buy APLD Stock – APLD
Applied Blockchain
2.54 2.98 0.44 17.32% 13.90K
Buy CLLS Stock – CLLS
Cellectis
3.27 3.82 0.55 16.81% 15.23K

Losers

Session: May 18, 2022 4:00 pm – May 19, 2022 1:07 pm
Symbol Open Close Change Change % Volume
Buy XDNA Stock – XDNA
Strategic CRISPR & Gene Editing Technology ETF
2767.04 9.60 -2757.44 -99.66% 2.55K
Buy BGXX Stock – BGXX
Bright Green
48.08 16.38 -31.70 -65.93% 4.91M
Buy PRE Stock – PRE
Prenetics Global
7.65 5.44 -2.21 -28.89% 30.90K
Buy MKD Stock – MKD
Molecular Data
0.14 0.10 -0.04 -27.94% 47.29M
Buy CNFR Stock – CNFR
Conifer Holdings
1.73 1.36 -0.37 -21.39% 12.82K
Buy VEDU Stock – VEDU
Visionary Education Tech
5.00 3.94 -1.06 -21.20% 2.34M
Buy CIG Stock – CIG
Energy Co of Minas Gerais
2.87 2.28 -0.59 -20.56% 4.11M
Buy OTRA Stock – OTRA
OTR Acquisition
11.23 8.95 -2.28 -20.31% 53.17K
Buy CIG/C Stock – CIG/C
Energy Co of Minas Gerais
3.64 2.91 -0.73 -20.06% 65.96K
Buy MFH Stock – MFH
Mercurity Fintech Holding
1.43 1.16 -0.27 -18.62% 28.97K
Buy OTRAU Stock – OTRAU
OTR Acquisition
11.54 9.55 -1.99 -17.25% 0.27K
Buy TGI Stock – TGI
Triumph Group
17.90 14.95 -2.95 -16.49% 1.76M
Buy TNYA Stock – TNYA
Tenaya Therapeutics
6.49 5.42 -1.07 -16.49% 75.02K
Buy GDXD Stock – GDXD
MicroSectors Gold Miners -3X Inverse Leveraged ETNs
15.51 13.03 -2.48 -15.99% 22.67K
Buy CIH Stock – CIH
China Index Holdings
0.84 0.71 -0.13 -15.48% 15.44K
Buy CLEU Stock – CLEU
China Liberal Education
2.83 2.42 -0.41 -14.49% 7.30M
Buy CSCO Stock – CSCO
Cisco Systems
48.36 41.39 -6.97 -14.42% 58.34M
Buy UA Stock – UA
Under Armour
9.71 8.31 -1.40 -14.42% 9.78M
Buy PIK Stock – PIK
Kidpik
2.20 1.90 -0.30 -13.64% 70.70K
Buy ENJY Stock – ENJY
Enjoy Technology
0.32 0.28 -0.04 -13.21% 1.85M

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