If you're like me, you've probably heard one of two things about investing in the stock market. Either (1) it's super risky and you'll lose all your money, or (2) you can earn a lot of money quickly.
Truth is that both those statements above are BOTH true and false. Huh?
Regarding the "earn money very quickly thing" it CAN ACTUALLY be true which I talk about below.
First, let me warn you about your stock market expert "friends" who always seem to be winning and never losing. Truth is they probably win sometimes and lose other times, but only talk about the wins. Since they wana be known as stock market "experts," they lose face if you learn about their losses.
So back to stocks and earning (or losing) a LOT of money very quickly.
First, you have to think of the price of the stock.
If you buy a famous company's stock at say, $100 per share and it goes up to $100.30, how much did you make? You earn a measly 0.3% (that's NOT 3%... that's zero-point-three 0.3%). If you invested $1,000, you will have earned 0.3% of that or a $3 profit. Tiny huh?
Now what if you buy some cheap company's stock at say $2 (two dollars!) a share. And then it goes up by just a tiny $0.50 (cents!) in ONE DAY to $2.50 cents. How much did you make? 0.50 is 25% of $2, so you made 25% in ONE DAY. If you invested just $1,000 dollars, you will have earned 25% of that or $250 in *one day*. So compare your $250 by investing in this "micro stock" vs. investing in the famous company stock. It's a HUGE difference. This is why for some who want to get rich very quickly, micro stocks are the way to go. Theoretically, just 20 successful trades can turn your $1,000 investment into $62,000. WOW!
Of course, the opposite is also true. While playing with micro stocks can allow you to earn your $250 in one day, it can also cause you to lose $250 in one day.
So ask yourself... is it worth risking your $1,000 (and possibly losing ALL of it) in order to earn $60,000 or even millions (only IF you're successful)? Only you can answer that yourself. But whatever type of investor you are (careful and safe vs. risky and aggressive), micro stocks are still an interesting topic overall. So to learn more about it, I promised you a video; so here's a quick and interesting video from my affiliate from which you can learn more about penny stocks: Micro Stocks Video
Disclaimer/Disclosure: Though I find this affiliate's video very interesting, I make no guarantees about your performance if ever you do decide to play with stocks because as I said, they are very risky and you can lose all your investment quickly even if you can earn millions quickly (even when guided by an adviser).
And as promised, here's your 2nd gift, my Lecture Notes (handouts slides) super sample
*If you were unable to download the free eBook on "Finance Basics," click here: