Young investors have every reason to deploy aggressive investment strategies as they have time to ride out the market’s ups and downs. However, for investors closer to retirement, the theme should always be safe and conservative options.
Aggressive investments are simply investments that have the potential to increase the value of the initial cash outlay. Likewise, they are best known for growth rather than their ability to provide financial stability. Besides, to prospects of higher returns, they also come with a higher than average risk of losing money.
Making Aggressive Stock Moves: Focusing on Individual Stocks
In the stock market, it’s pretty easy to make aggressive moves. However, the focus should always be on proven individual stocks, given their higher upside potential than funds. In this case, the idea is to search for unknown companies with tremendous opportunities for growth.
Some of the best companies to invest in are those:
- Working on revolutionary technologies such as Blockchain, Machine learning, Artificial Intelligence, etc.
- With operations in the biotech sector and working on novel treatments and vaccines
- Trading at low prices because of a slow market but highly established
- With the potential to increase sales by at least 15%
- In emerging economies with tremendous potential for growth
Market Aggressive Stock Moves: What Not To Do
While individual stocks offer tremendous opportunities to grow capital, it is essential to be cautious while dealing with penny stocks. While penny stocks often seem like a great idea given their low valuation, they are a penny for a reason.
Most penny stocks are usually of poor quality companies that often than not struggle to generate the desired returns. Likewise, penny stocks are subject to extreme volatility levels, which could see losses pilling much faster, even on a small price movement.
It is also important not to invest 100% of capital on a specific investment no-matter how good it sounds. Even the best companies suffer downturns that often result in stocks declining significantly. While investing in individual stocks, it is important to diversify.