Can you make money selling shares?
Personally, I have made money investing during troubled times. I am sure most of you with excess cash have also reaped handsome returns buying the shares of troubled financial institutions, such as Citibank, Goldman Sachs, Wells Fargo.
In fact, 2009 was a year when almost every share you touched could be turned into Gold, except for those with structural and deep financial problems within the organisation, such as General Motors.
That was during the bull run starting in 2Q, 2009.
Not sure how many of you were caught during those uncertain times, when the bear and bull were playing tuck-of-war, and you were desperate for money. In those times, you could be sitting on paper losses, or worse still, if you faced liquidity problems, you would have to let go of those shares at a diminished profit (assuming you bought those shares at its troughs), or at marginal to substantial losses.
Can You Generate Huge Returns on Investments
The answer is YES with penny stocks. Unfortunately, you can also lose a lot of money with penny stocks. The key is knowing when to enter to scoop up the pennies, and when to let go of the pennies. Unfortunately, the lay investor are at the mercy of the Market Makers, who manipulate most of these penny stocks through strategy investing. The saying “high risks, high returns” definitely holds true here.
Blue chips may not be able to fetch you super returns, however, they provide a more steady bet with growing your investments through stocks. If you had piled many blue chips into your stock portfolio in 2009, when they were dirt cheap, you would have easily seen a 100% return on your portfolio.
So, what is the way forward, now that most of the markets have recovered substantially? I would love to hear from you, so do leave your comments.
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