Hello!
I don't personally see Bitcoin as that volatile any more (relatively speaking anyway), and it could well still rise further. It crashed by something like $300 this week but that didn't bother me and it's making a great recovery back up to $1000. Just a bit annoying if you buy at the top and get to watch that happen!
Altcoins seems to be where to get bigger returns now especially for small investments though. The value of most coins generally goes up but it's still a bit of a minefield especially if you panic sell/buy, as the daily graphs can look a lot different to the overall picture. If you want to use those, get a bit of BTC first then check out
http://coinmarketcap.com/ and what people are speculating and pick some coin to buy with it!
The main thing is not to put in anything that you're not prepared to lose, and
never take any notice of what anyone says in the btc-e trollbox, seriously! ![Tongue](https://bitcointalk.org/Smileys/default/tongue.gif)
You could buy a well established coin like namecoin or ppcoin and try to forget about it for months/years and hopefully double up your investment, or daytrade to try predicting the up and downswings for more fun and more returns but of course more risk.
Personally I'm into Quark coin at the moment as I think it's got a lot going for it, but it is relatively new and unproven with some harsh critics so we'll see!