Posted on 29 June 2012.
Most investment brokers will tell you that the best time to pursue aggressive stocks to buy is when you are young. As you age, they will recommend that you reduce the number of aggressive stocks in your portfolio and begin to make investments that are more conservative. However, these early holdings in riskier and more aggressive stocks can pay off big in the long run.
The purpose behind these risky investments is to increase your chances of buying into a stock that takes off and increases its share price exponentially. You do this when you are young because most of the aggressive stocks to buy will fail and lose money. However, if you are going to be in the stock market for forty more years before you retire and need to count on your return for income, you have time to recover from those losses. In the meantime, multiple investments in these risky stocks are likely to turn up at least one that becomes successful in the long run.
Eventually, you will just hold on to the investments that succeeded and trade the losers for more and more conservative stocks and bonds. By the time that you are nearing retirement, you will most likely have a portfolio full of very conservative stocks that are unlikely to increase dramatically in value. These are meant to preserve your gains rather than expand them any further.
You can find these risky stocks in a number of different sectors of the stock market. Alternative investments are also a species of risky investment. Some investors pick up a penny stock or two just to take a gamble and possibly win big. Usually, new companies are among the most aggressive stocks to buy.
© 2015 MJ Capital, LLC | All rights reserved