Investing for a Purpose
When the lady was asked why she bungee jumped off the bridge that spanned a massive ravine, she answered “Because it’s fun!” When someone asked the follow why he dove into a pool that was chock-full of alligators and snakes, he responeded “Because someone pushed me”. Your investment in stock should not happen unless you have a purpose that you understand like investing for growth or investing for income.
I know of a very nice elderly lady who had a portfolio brimming with aggressive-growth stocks because she had an overbearing broker. Her purpose should have been conservative and she should have chosen investment that would preserve her wealth rather than grow it. Obviously, the broker’s agenda got in the way. Stocks are just a means to an end. Figure out your desired end and then match the means.
Penny Stock Growth Investing
When investors want their money to grow, they look for investments that appreciate in value. Appreciate is just another way of saying “grow.” If you have a stock that you bought for $8 per share and now its value is $30 per share, you investment has grown by $22 per share and that’s appreciation. I know I would appreciate it.
Appreciation also known as capital gain is probably the number one reason why people invest in stocks. Few investment have the potential to grow your wealth as conveniently as stocks. If you want the stock market to make you loads of money relatively quickly.
Penny Stock are a great way to grow your wealth, but they are not the only way. Many investors seek alternative ways to make money, but many of these alernative ways are more aggressive and carry significantly more risk. You may have heard about people who made quick fortunes in areas such as commodities, options, and other more sophisticated investment vehicles. Keep in mind that you should limit risky investments to only a portion of your portfolio such as ten percent of your investable funds. Experienced investors, however can go as high as 20 percent.
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