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Make Money with the High Risk High Return Philosophy

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What Is the High Risk High Return Philosophy?

High Risk High ReturnInvestors who subscribe to the high risk high return philosophy believe that they will make the most money by making risky investments. While financial advisers that are more conservative may disagree, many investors are proving that the philosophy does work. High risk, small stock investments such as penny stocks, options and futures cost less than five dollars per share. This means that while the risk of loss may indeed be high, investors are actually risking far less money than they would on a larger, more stable investment. Additionally, the reason that these investments are considered to be risky is that small stocks are often quite volatile. They belong to new companies or to companies that cannot meet the basic requirements for regular market listing. While they could crash overnight, however, they could also grow exponentially in value. By investing in a wide array of low cost stocks, investors are banking on the fact that while most may fail, the few that succeed will more than make up for the loss. This is the high risk high return philosophy.

 Taking Advantage of High Risk High Return Investment

If you want to put the high risk high return philosophy to the test, there are a few things you can do to lower the risks and make the returns as high as possible. It is important that you choose your stocks carefully. Although it can be difficult to research new companies, you should do as much research as you can. Even if you expect the majority of your stocks to fail, you want to optimize your chances by only choosing stocks you think might succeed. There are a number of websites and computer programs that can make choosing stocks a lot easier. Find a site that lists reliable information and listen to their recommendations. Investment software can help you analyze trends and may be able to predict which companies are more likely to do well. It is also important to relax. Remember that with the high risk high return philosophy, you may lose many times before you finally win big.

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