INVESTOR’S TIPS: A Tanking Share Can Become A Ladder
“I’m definitely not buying any stocks now, look at how bearish the market is!”
How many times have you heard this before? Surely there are many amateur investors who hold the same misconception about how it’s not a good idea to invest in something currently declining in price.
And yes, a bullish stock or market will generally have more potential for profit growth. But if the stocks you’re procuring still have firm fundamentals, then the low prices can be attributed to market perception or short-term investor fear.
Remember when Tesla’s stocks went down 9% after a pair of C-suite executive resignations and a bizarre video showing CEO Elon Musk smoking pot on a podcast?
And how is Tesla doing after that?
Well, even if they haven’t reached their height of US $381.00 p/stock of 2018, they’re still putting out amazing Model S updates in 2019 and SpaceX still has its hangar at the Kennedy Space Center. So, they seem to be doing just fine.
The important thing to do in this situation is due diligence and find out the real reason for the price change. Remember that in the stock market, nothing moves in a straight line, most people can be panic selling or there is just a market stagnation since the market tends to be cyclical.
If this turns out to be the case, look at the stocks you’re concerned about as if they’re on discount.
Can you imagine if you would’ve bought those Tesla stocks back in September of last year for less than US $100.00 instead of just selling them like everyone else?
They’re currently listed at around US $240.00 in NASDAQ, so that alone would’ve net you some serious profits. Yeah, with just taking advantage of their temporarily lower prices and buying up like they’re discounted.
Learn to spot opportunities in adversity
Like any experienced investors would say after doing research on the specific stock, the company and its market:
“This has the potential to become a great deal, since I’m buying incredibly cheap and I’m going to love it in a few years when the prices have rebounded.”
Now, like we said before, this isn’t always the case and stock rebound is not a surefire way to get profits. It certainly isn’t the safest, but it can be very profitable and relatively secure as long as the company and market are sound.
It’s entirely up to you if you want to take the chance with a penny stock, but the important part is to learn to change your mindset and see the opportunity in every kind of situation.
When focused on generating profits this is what you’re looking for:
It’s obvious that the higher a company or a stock is, the less chance it has of growing.
If you’re looking for a safer alternative that still generates huge profits thanks to marked price differences on stocks
Then, you can turn your attention to private sales:
- They don’t involve hedging against risk.
- Even if they’re not as liquid as to betting for the rebound of a public stock, they offer a bigger security – if you get in early enough – when it comes to significant returns.
Companies that are going through their private sale phase are usually looking for potential investors to participate on an initial round of funding for their project in exchange for shares of said companies at preferential prices. This is an attractive opportunity for investors – if they choose the right project of course – since the profit potential is increased, yet the risk is not as high as investing into a penny stock.
Maximizing your profit projections for a specific private sale investment
You have to make sure to pick a company within an emergent market that has global reach and is developing an innovative product that will become disruptive in its own industry.
Yeah, easier said than done, we know. But who said that value investing was ever going to be easy?
What it doesn’t have to be, though, is complicated. Now you know you have options to make way and turn things around during seemingly negative moments. All you need is a sound opportunity…
And actually, we can help you with that too.
You see, there is, in fact, an emerging market in the financial sector that’s giving birth to disruptive and compelling industries set to change the business landscape in innovative ways.
Enter, the FinTech industry
The FinTech industry has evolved a great deal over the years and its ecosystem continues to rapidly mature by reaching new heights in funding over the course of 2018.
They have been introducing big developments that range from:
- The early stages of open banking.
- More regulatory clarity and AI and blockchain maturation
- And constantly launching new products and diversifying technology developments.
It is exactly on this industry that one company – on their private sale phase – is aimed to redesign the financial world.
A holding for a consortium of FinTech companies that, through the creation of a differentiated and innovative new asset class with intrinsic value, integrated within a crowdfunding, trading and banking ecosystem, will lead the world to the future.
This is the kind of opportunity that’s full of potential, ambition and at the right time to get in on. If you’re serious about diversifying your portfolio with all-encompassing investment avenues that show great promise, you need to click the link below and check this one out.