With a little more caution and a little less impulse I'm doing OK with Small Caps.
My focus has been on Tech and commodities which I believe are going to boom based on current tech trends.
So far I've had the following stike rate:
The first stock I purchased base on advice from a website that I am now very dubious about has basically gone sideways with no significant up or down movement. There are recent signs that they are set up for good gains in the next year or so but for now I'm break even.
The second stock I purchased is mining for Gold, Silver , Copper, and Graphite in South Korea . They struck gold ( literally ) at about the same time Donald and Kim started fighting with each other. The price is down a little on this one but I'm sure it will bounce back with a vengance once the situation in Korea gets sorted out.
After doing a bit more research I then bought into a batery tech innovator and the price has increased by a little over 20% in a bit over 3 months. My feeling is that they on the cusp of serious success so I'm
The next purchase I made was based on advice from someone with serious credibility who is starting up a small cap investing news letter .. The first pick I made based on their recommendation is up over 100% in just over 2 months and is on a trajectory that doesn't look like stopping any time soon.
At this point I'm up a little over 40% in just over 6 months.
My next foray will be into Cryptocurrencies as I figure that when I look up there is far more potential for gain than I see to lose when I'm looking down.
After looking into many ways of generating passive income I've made the decision to invest some my hard earned dollars into shares in a few small, somewhat speculative companies. I don't know how I'm going to go, and there is a possibility I'll lose the lot but I haven't invested much and if one of these guys takes off like a Cisco, Amazon, or Walmart I'll be a very happy guy.
I tried my hand investing in small cap biotechs a while back with mixed results and fortunately broke even on the exercise . I was lucky as I did about 10 minutes research before buying these shares and one that I purchased a lot of nose dived and another I purchased a few of skyrocketed ... net effect I got my money back.
This really solidified the pros and cons of investing in small caps for me and I have learned two key things from this exercise.
First and foremost I won't invest money I cant afford to lose in small caps. I have realised that small caps are often highly volatile and you can easily lose the lot if you back the wrong business. If you are looking for a predictable steady return then there are probably better investing options out there for you.
Secondly I do my own research ! (DYOR) and consider any advice I am given in context believe it or not there are many people in investing forums who do not know what they are talking about or quite amazingly have their own interests at heart not yours.
Even though I don't invest what I cant afford to lose I still like to maximize my chances of a great return by de-risking my investment as much as possible.
My 7 point checklist been really helpful to me when deciding what my stock picks should be.
I've made a number of recent purchases all of which are holding their ground and a few are looking to take off... I'm sure its just a matter of time.
Please wish me luck and remember to always look for a path to prosperity for yourself and everyone around you .. We will do better if we are in this together.
I recently purchased a small parcel of shares in a small company who were mining for zinc-silver and graphite with some success and were looking good to supply a burgeoning battery industry wth it's graphite needs . This purchase was made in mid August and I was pretty confident I was on a winner..
The only problem is that the company operates out of South Korea and around about the same time I hit the go button on my purchase president Trump and Kim Jong-un decided to start butting heads over North Korea's missile program and people started to sell off their holdings at a rapid rate as a result.
Then came the news that the company had struck Gold (Literally) in early September . An announcement like this would normally shift a stock price in the right direction but I can only assume because of the instability in the region they didn't move at all.
This has taught me a couple of things:
- No matter how confident you are that you have made a good investment there is always the possibility that a stock price will go the wrong direction.
- Every trade needs a seller and a buyer - If no-one is buying you may not be able to get out so will just have to hang on for the ride.
Fortunately the bargain hunters have moved in and are buying up stocks from holders who have been shaken out of this company.
Me .. I'm just going to hold on and have faith that the US , China , and North Korea can sort this thing out.
I figure I've got much worse things to worry about than my small stock holding if they don't.
I've been trying to make money with Adsense for a long time with limited success and lots of frustration but I've recently decided to have another try and I think I'm making a bit of progress.
The biggest problem I faced was always that I didn't have a website which generated enough traffic to allow me to reliably generate revenue and I think I have finally made progress to solving this almost by accident. Another one of my hands on enterprises is the sale of pens and pen refills via my website at www.mitrax.com.au this business is quite successful in its own right but some of the guides and resources on this site are now ranking quite well in google and other search engines and as a result are attracting quite a bit of traffic.
The other thing that was holding me back was that I had problems getting adsense ads to display on my pages . I would add the code the ad would display for a few minutes and then disappear never to be seen again and I just couldn't work out why until I logged into google webmaster tools and found a message warning me about Spammy structured data for http://www.mitrax.com.au/ . After fixing the problems with rich snippets on my site I followed the instructions to submit a reconsideration request and a few weeks later I got a message indicating that my request for reconsideration had been successful. I had almost given up on displaying ads from adsense at this point but decided to give them one last try and to my surprise discovered that they are now displaying correctly.
These ads only make me a little bit of money every day at the moment but there is pretty much zero effort involved and if I concentrate on generating more traffic and get smarter about the way I display ads I am sure I can increase this amount .. I'll keep you posted as to how I go.
Like most things that I have become good at in life I am progressing through a significant learning curve as a result of research and experience. During this research I found this old article titled "The Deadly Art of Stock Manipulation" and it really made sense to me in the context of what I have been seeing when I watch stock prices and the information I recieve via email and forums every day.
Paraphrasing what I gleaned from this article:.
Professional investors make two assumptions:
With the above in mind an unscrupulous investor who wants to make a bit of money just needs to start a good news campaign , wait for word to get around and then dump their shares on the people who are buying as a result of the good news.
A price run followed by an increased volume of shares changing hands at high prices is often a sign that the run is over and someone is exiting their position at the higher price.
Whist amateurs are seeing a good thing and getting onboard the pro's are getting out and taking their profit.
If the same unscrupulous investor then wants to pick up shares as cheaply as possible they just need to start a bad news or no news campaign and wait for the amateurs to get jittery and sell.
I basically came to the realisation a share trade is not a buy or a sell it is both i.e. someone is buying and someone is selling and if the market is being manipulated you will be on the wrong side of the deal if you follow the herd.