HOW DO I GO ABOUT INVESTING MY MONEY FOR A LOW RISK PROFIT?

Your questions are so broad and general, we cannot answer exactly until you read a couple of books. You need more than just a paragraph or two. Once you ask an exact and specific question about something you don’t understand exactly and specifically, we can give you an exact and specific answer.

Although your question about a “low risk profit” appears informed at first by concentrating on risk, it precludes any chance of a loss, and the focus is squarely on “profit,” which may be your undoing, as with most beginners. In fact, I don’t think you understand risk at all, and are merely asking how to make money without losing any. By trying to make your question sound important and seem informed, you dilute the meaning and lead us astray.

If you don’t want to lose money, and you want low risk, then you need to stick with money market investments or bank CD’s.

A ‘tidy profit” with low risk doesn’t exist, unless “tidy” means small, and certainly not in stocks. Without diversification, you would be increasing risk, not allowing your goal of low risk.

The time to diversify into bonds is certainly not at the bottom of an interest rate cycle. You would be diversifying into increased risk, not less. You have to be careful talking about diversification at the end of cycles.

At certain times — even with these latter methods, you are not diversified at all, like during 2008 when everything fell in price together. There were no safe havens — gold, oil, bonds, stocks — everything fell in price. If you can recognize that prices are falling in everything together, that your stocks are getting stopped out left and right, then you let the market tell you when to diversify into cash. If prices are falling day after day and you recognized this increased risk, a way to diversify would be to short stocks or ETF’s.

Once again, if you are able to recognize where we are in the economic cycle, then there are additional ways to reduce risk. This goes against the Buy & Hold theory of the average investor or college professor, but you cannot persuade me that the risk was the same in gold at $400/oz as it is now at $1,240/oz. You cannot persuade me that the risk was the same for stocks in 1992 at a level of 3,000 on the Dow as at the end of the dot.com bubble in 2000 when the Dow reached 11,000.

To answer your original question, without the dilution, especially with such a small amount, you would probably be better off just investing in a bank CD.

If you want to make a “tidy profit,” you have to be able to accept increased risk.