With some smart investing, you could pull in some nice profits over time. But sometimes those profits can seem so small that you wonder if the effort is even worth it. You want to get the most profits that you can from your investments to make you excited about what you’re doing and to feel like it’s all worth it.
There’s no way to make a windfall on all your investments without the help of a crystal ball, but you can certainly maximize your investment potential by making a few small changes to your approach.
Here are a few simple things you can do to get more out of your investments:
Buy Stocks with Growth Opportunity
Theoretically, every stock has the potential for growth. That’s why you invest. But certain stocks have more potential than others. For example, when a company first goes public, it is nearly impossible to buy those initial shares because everyone expects the stock price to go up significantly after that initial offer. In some cases, the stock prices rise dramatically in just a few short months.
You can also purchase stock in things like technology to increase your opportunities for growth. For example, the GoPro camera is relatively new, but it has already gained in popularity significantly. It trades as NASDAQ: GPRO. It is not hard to imagine a future in which a GoPro is as common as an iPhone or a laptop.
Identifying stocks that offer high growth potential can help you get the most out of your investing dollars.
Diversify Your Portfolio
Every investment comes with a bit of risk. Again, unless you’re investing with a crystal ball, you are going to take a hit every now and then. (Maybe more than every now and then.) The best thing you can do to guard yourself against loss is to diversify your portfolio so that you can make more gains to offset those losses.
Your portfolio should include a mix of low- and high-risk stocks, mutual funds, currencies, commodities, bonds, and even real estate. There are so many investment opportunities out there. Explore them all with a trusted financial adviser and do some research on your own to find the best options to meet your goals.
Know the Right Time to Buy and Sell
Really, you can make a windfall if you buy a large amount of a stock at just the right time and then you sell it at just the right time. Too bad we can’t all see the future so we know the exact moment that a stock will reach its peak price.
You can educate yourself as much as possible about a company, the history of its stock price, market conditions, and the economy so that you can make better decisions about when to buy and sell. You can also work with experts who can give you this information and save you a lot of time.
Choose Investments with Fixed Returns
Over time, you may make some big gains, but you may also suffer some big losses. Getting consistent small returns will end up giving you more profit in the long run than going through these high ups and downs. This is known as dollar cost averaging. You can make more over time by putting more money into savings accounts, bonds, or other investments that give you fixed returns.
Sure, you won’t be too thrilled when you see the small percentage yields you are getting, but if you look at how much you gain over time, you will be quite pleased. And the more money you put into accounts with fixed returns, the bigger those gains will be.
Getting the most out of your investments doesn’t always mean that you’re swimming in cash. It can mean that you are taking advantage of every opportunity that your investments offer and that you are making proactive decisions that push your returns to the positive. You don’t have to be an investing genius to get those results. Just follow these tips to make simple changes that can help you make a big impact on your portfolio. You’ll soon start reaching your financial goals and be quite pleased with what you are getting back.