Identify Bad Penny Stocks 2
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The world of investment is a dangerous place. Yes, there is a real chance that you can make a lot of money and get rich. But, there is also a chance that you could lose everything. The last statement is not supposed to scare you from making an investment, far from it. What it is supposed to do is make you aware of the hazards of making the wrong decisions. There are plenty of cases where potential investors get it wrong because they make mistakes, and you don’t want to be one of those people. Here’s how you can avoid the mistakes and make your investment successful.

Betting On A ‘Sure Thing’

Let’s get one thing straight from the beginning – there is no such thing as a ‘sure thing’. There are portfolios that are more lucrative than others, and ones that are lucrative that are not popular yet. But, that doesn’t mean that you are automatically going to make money. When someone tells you that you can’t lose, don’t believe them. Instead, take the same precautions you would take with all of your other investments. That is the only way to make money.

Missing The Signs

The signs are there for everyone to see, but you have to be able to read them to take advantage. The fact is that there are not too many people that can read the signs, even the experts that spend all day trading on the stock exchange. However, if you can see the value in something before it skyrockets, you can cash in and make a quick buck. Double ended ferries for sale, for example, may be worth a punt if the demand for cruises or ferry rides increases. As soon as the demand increases, so will the cost of the stock. Ferries are just one example of seeing the boom before it happens, but you can apply it to every opportunity.

Buying Without The Cash

Plenty of people like to invest without the money in their pockets. To a point, that is fine as long as they have the capital in some other form. For example, they may have equity in their house that they are willing to trade. The point is that they have the cash in some form or another, which is different to investing without any capital whatsoever. That is a death wish and is only going to come back and bite you on the ass. If you are unsure how much to invest, you should only invest what you can afford at the time. By doing that, you won’t come unstuck financially.

Buying High, Selling Low

Rule 101 in the investment handbook is not to buy high and sell low. If anything, you want to do the opposite. You may be thinking what is the need to point this out when everyone knows the rule? But, the truth is some people still make the mistake. It can happen for a variety of reasons, like not understanding the bigger picture, but it still happens.

Never forget that you want to buy low and sell high. When everything gets too complex, just keep this little tip in mind.

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