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Speculative Investing

How would you feel after few years if your investment has been multiply by ten or more?  I believe that would a dream that comes true.  This article is about speculative investing or speculative investment that pays.  It will help investors to adopt a simple speculative investment strategy that works with times and growth.  


One wants to give oneself enough time like a farmer who sows a healthy seed on a rich ground.  One will be working with time, season and a good seed of investment .  Let's get started.

Steps For A Rewarding Speculative Investing Or Investment

1/ Take time to find a sector where investing growth is more likely.

2/ Search for companies that are tuned with with the sector's bullish market sentiment.            

3/ Buy them during the Initial Public Offering (IPO).                                                                    

4/ Hold those positions for five to ten years if you can.                              5/ Only use money (fund) that you don't mind losing.                                                                  

6/ Be a very patient investor but do not be greedy.


Finding Good Sectors Where Action Is Happening

The sector should not be overbought.  One example today (in 2020) is the technology sector.  That sector been booming for more than a decade.  One will pay attention to the sector's rate of growth and demand to buy its healthy components (market sentiment).  


Indeed, one is looking for a sector where the asset price can be multiply by five , ten or more between five to ten years.  That is it.

Finding Ten Times Growth Companies

Imagine one bought Facebook or Amazon stock at the early stage.  See how many times that investment has been multiply today in 2020.  The most recent example is the Facebook stock that rose from $22 in 2012 to $209 in 2018.  Now I am not saying that every company will do so well like the Facebook stock.                                                                          


However it reveals the power of the speculative investing or investment strategy that I am sharing with you today.  Of course there will some losers, but one can also multiply the initial investment five or ten times within a decade in a booming financial market sector.  


Many patient speculative investors have become millionaire since they bought Amazon stock at $8 in October 2001.  The stock today in January 2020 is at $1886.  Just two decades of investing patience and discipline have paid like the generous father Christmas.


Are you getting what I am barking about?  That is one or two life time opportunities that one wants to get hold of.  If one also takes into consideration the cumulative juicy dividends, one is talking about a really fantastic investment.  Investor who reinvest those dividends will surely be laughing all the way to bank.                                                                                                                                                         

The focus in the technology sector was on the advertisers that are growing their revenues year after year.  Amongst those advertisers are Google, Facebook, Twitter, Snap Chat and Pinterest.  Those stocks were in high demand because they were in tune with the growing technology sector.  In 2020, it is still not too late to buy and hold Pinterest.  


It starts 2020 around $18 but already today on 22 Jan 2020, it already hit $22.  Will it continue to rise?  Will it do the same thing like the Facebook stock or Amazon stock?  I do not know, but if one is playing like a speculative investor, one can take a look at it and play it safely according to the strategy that I am sharing with you today.  The decision is always yours.

Investing In Growth Stocks At The Right Time

It is important that one buys at the very early stage during the Initial Public Offering (IPO).  It is like one is at the entrance of the bullish financial markets sectors waiting to catch the best stocks as they are listed for the first time.  That will help one to avoid buying them when they already reach five or ten ten times their initial offering price level.  


A better scenario would be to buy in a timely fashion those that decline withing the first three to six months after the IPO.  


Quite often a healthy company with a brighter future in a booming sector may have a bad IPO because the markets have rejected the initial offering price (too expensive).  In those instances, the markets will correct the discrepancies, and after that the stock is back in favour.   Sometimes, just due various market forces, a newly listed stock can decline for months before starting a bullish trend that will last for many years.  


Usually, there are no obvious fundamental reasons to justify those IPO failures.  Many times, it is a blessing in disguise because one can buy and  hold a healthy company that has declined during the IPO at a lower price or below its fair value before the starts to rise without looking back.


In 2020, Pinterest stock has followed similar patterns.  The future will tell if it has what it takes to make a speculative investor laugh all the way to the bank.


Furthermore, Elliott wave traders who bother to learn about the irregular first Elliott wave will know exactly what to do.

Holding Speculative Investing Position Patiently

For this simple investing strategy to work after one has followed everything that I have shared today, one must also be cleverly patient and hold the stock for five to ten years.  


The length of time one holds the healthy stock is the key factor that will be beneficial if one buys the asset at the right price.


The time will not help if one buys a useless company in a bullish financial market sector.

Never Use Money You Can Not Afford To Lose

For the attention of those who are new to money management, please read about it here.  There are two types of investors:  intelligent investor and negligent investor (gamblers).  


Indeed, an investor who loses money that he or she can afford to lose is an intelligent investor.  However, those who lost investing fund that will change their lifestyle for the worst are negligent investors.  


If one is a negligent investor and one knows that, one must stop and change today.  Please do not feel like you are a useless being.  Today, make that decision to never invest with money could help make your life better instead of the investing dreams.


Let's face it, only gamblers will continue doing that.  Really, it does not matter the investing strategy one is using.  This speculative investing strategy is not for negligent investors or gamblers.  Please use it as an intelligent investor.

Be A Patient Investor That Is Not Greedy

A component of healthy growth sector can exceed the bullish expectations of many because they can multiply the initial capital by five, ten, twenty or more.  That was the case for some technology stocks like Google, Amazon and Facebook.  And there are more in the pipe.  


In fact, it is like catching the right high speed train to a specific destination.  One can just seat and enjoy the ride until the high speed train comes to a stand still at that destination one is headed. The good thing about the speculative investment is that one can still get off if one realises that one gets on the wrong high speed train at anytime if one chooses to do so.


This is exactly the attitude that one should adopt when investing like a speculative investor.  It requires patience, time and allowing both the financial markets sentiment and bullish momentum to boost the speculative investing portfolio over many years.  Google and Microsoft's long term speculative investors are truly happy and rich market participants.

Conclusion

A speculative investor is an intelligent growth investor who does not let go of the valuable stocks or companies that he or she has purchased at the early stage of the Initial Public Offering (IPO).  


When one does what one needed to be done without cutting corners, one can be generously rewarded.  All that is needed is to buy the best companies in a booming financial markets sector before they start galloping to the heavens.


I hope this article is useful to the speculative investors.  Please share it if that is the case.  Also do not forget to mention us in various investing forums.  I wish you the very best in your speculative investing.  Happy Investing.


This article is written by George Beaulieu 

Founder of Stochastic-MACD.com website.