“An investment in knowledge pays the best interest” – Benjamin Franklin
This famous quote by perhaps American’s greatest President could not hold any truer. The best investments one can make is in the pursuit of knowledge is their desired field of expertise. Whether that be cooking or stock trading learning the ins and outs of the industry and consuming all the relevant information and knowledge around you can help generate the best returns over sustained periods of time.
When it comes to money we all want to have money lying around that we can use to make investments that can help generate even more money. The richest people in the world put there “money to work” by investing in sound opportunities that help them increase their wealth and disposable income.
As an investor, you can often be overwhelmed by the investment opportunities available and can find it difficult to choose where to invest your hard-earned money. Investing in stocks, real estate, mutual funds, and even bonds can all generate returns over time but how do you figure out what is the best investable opportunity for you?
Investing In Stocks
The most common form of investments made by the general public is in stocks as common stocks offer a tangible and highly liquid asset that can be bought and sold at any point in time. Trading and investing in stocks is also relatively easy and doesn’t require extensive paperwork or large amounts of money to get started. The barriers to entry make it a much more attractive opportunity for aspiring investors seeking to maximize returns on their investments.
To purchase common or ordinary stock in a company means that you are essentially buying a percentage share of ownership within that company and are thus entitled to both its profits and losses. The more stock you buy of a certain company the more percentage of it you own and the more interest you are likely to have in that company’s continued growth and success.
Most modern billionaires and many many millionaires have made their money investing and trading in stocks walking away with sizeable returns. Blue-chip stocks aren’t cheap and can be quite expensive but most of the investors that have made their fortunes in stock trading started trading on portfolios of much lesser-known stocks and companies that grew to become the global giants that they are today.
Examples like Google, Uber, Instagram, Facebook and tens of other tech companies have experienced exponential growth in the past decade alone in what many are calling the period of the “technological boom”. These companies started off with stock prices far lesser than what they are traded for today and those that invested early have walked away making millions and even billions in the process.
For most individuals investing in blue-chip stocks can be daunting as they are quite expensive and even a large sum of money only buys you a very small percentage of ownership with the company.
Blue-chip stocks are less volatile and much more stable which makes them great if you are looking for a safer investment and have a sizeable sum of money to invest but aren’t advisable if you are seeking investments that offer higher returns and are less expensive to attain.
This is where penny stocks come in. These stocks are much more affordable than blue-chip stocks and also carry the potential of making huge gains in relatively short periods of time. To many investing in penny stocks seems more like a gamble than a smart investment. But all investments are a gamble if you don’t know what you are investing in.
Regardless of the bad reputation that penny stocks have attained in the past few decades, these shares are legitimate and have the potential to make you a lot of money on relatively small investments. This is because unlike blue-chip stocks, even for small investments you are buying a substantial percentage interest in a said company and if this company is promising and takes off the returns you gain are also substantial as you bought those shares early when they were worth very little.
Since the value of the stocks are below $5 an increase of even a few cents can translate to huge gains for investors and that is why penny stocks are fairly popular amongst the more experienced and knowledgeable traders.
If you have an interest in penny stocks you have likely heard of the name Timothy Sykes. This man is famous for investing the money that he received on his bar mitzvah from his parents (a sum of $12,000 and change) and converted it into millions of dollars trading penny stocks while still studying in University.
People like Timothy Sykes have devoted their lives to trading and now teach the tricks and fundamentals of penny stock trading to aspiring traders and investors. The Timothy Sykes Penny Trading Challenge is one of a kind course that helps traders and investors alike gain valuable insight and knowledge on how to translate small investments into huge gains. Just like our great President once said investing in knowledge pays the most reward in the long-run.
The more knowledge you gain the more likely you are to make the most viable decisions possible when it comes to your personal finances. If you are interested in stock trading and want to make better investment and wealth management decisions seeking the right sources for knowledge is essential as it will make you a better and more knowledgeable trader or investor.
Copying trades of more reputable traders than yourself can only get you that far. It is not until you understand the inner working of the market and gain valuable insight that you truly stand to make a lot of money.