Stock High risk high return

Elisha755

New member
Many investor purchase a particular stock with the intention of making a big profit over a short period of time.. However, this action is not investing,but a pure gambling..the reason for this is that you are never guaranteed that you will get the high return you hope for over a short period of time...
there may be times in which stocks have put a record on short-term growth,bur these occurrences are very rare..on average stock have returned from 10%to13%.. However, this doesn't mean that all stock return at these rates..

the stock market is characterized by the trade-off between risk and return.. the higher the risk the investor is willing and able to take, the higher potential rewards from the investment.. therefore,if a particular investment offers you high returns, it is an indication that will come with a high risk burden..

As part of the selection process, you should determine the risk level of the stock as well as your risk tolerance..if you are looking for high returns you should be able to meet high potential losses as well.
 

Oluwasegun purpose

Active member
Many investor prefer technology-oriented companies over blue chip companies, because the first provide higher return than the latter.. However, The latter provides it's shareholders with regular dividend to compensate for the modest growth

So next time you offered a stock that is expected to triple in the value over a short period of time, think carefully whether to invest in it , because the chance of it failing to reach this level of return is extremely high
 

Oluwasegun purpose

Active member
Remember that there is no safe investment that will provide you with high returns over a short period of time. Therefore,you should direct your resources toward long-term investment that are more likely to reward you for the patience with high return
 

Ithedicious

Valued Contributor
I don't really think it is only on stock market , but every trading platform both forex and crypto currency is too risky to the points that only expert are able to make money consistently with such. I have seen so many people who are earning perfectly with trading of stock market and forex . I believe the reason why they are earning is because they have dedicated their time to learn and understand everything.

At the same time some people are also losing their money because they just trade what they don't know . Another reason why so many people are losing to most of this volatile market is because they are being encouraged by people especially expert.

Some of these experts make it seems as it is quite possible for people to make money as a trader thereby leading and innocent people astray into thinking that trading of stock or forex market is just something they can get reach within a short period of time.

It is just recently that I got to understand about demo accounts on forex trading and ever since I got to understand about the demo account I have been practicing it for sometimes and it is not really easy as most people are saying.
 
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