Performance 
Anyone who’s visited Investor Trader in the past knows we err on the side of risk when it comes to investing our hard earned. A quick look at our portfolio as it stands today would appear to back that up – it’s a rag-tag band of Alternative Investment Market (AIM) shares from India, China and Australia with a leaning toward green energy. Oh, and then there’s the bank that nearly went bust! But appearances can be deceiving…
To the casual observer it may look like a portfolio on the brink but I’ve done my homework.
Since it began in 1995, over 3,000 companies have looked to the Alternative Investment Market to fund their expansion and although there’s been plenty of success stories in that time, for every small cap that’s gone on to bigger and brighter things there’s one that has stagnated or gone bust.
So why go with the risk? We like the potential of massive return that comes with risk but here’s the kicker, with some quality homework the risk doesn’t have to be proportional to the potential return. So you can have your cake and eat it too, to a degree.
By their very nature, markets are fluid, they change daily, so what may have been a great reason to buy six months ago may now be a prime reason to sell. There’s no magic formula here, no golden ticket. My advice to getting it right is to read, then go back and read some more from another source. Get your hands on financial reports, read opinion pieces, follow bulletin boards, if you don’t understand a term used in an article, get over to investopedia and get up to speed.
Literally, knowledge is power in this game and if you’re up for acquiring that knowledge then the fiscal rewards can be massive. We live in the information age where financial data is abundant so there’s no excuse for not doing your homework.
Small Cap Resources
- Growth Company Investor
- The Small Company Sharewatch
- Small Cap News
- Reuters Small Cap News
- Alternative Investment Market
Financial spread betting with IG Index provides a tax-free way to profit from rising and falling prices on 1,500 UK shares. Open an account today and start trading shares tomorrow.
Drop by AIM Soirée to discover what's hot gossip on AIM today and never miss the UK investment bargain boat again.
Comments
Posted On
Aug 26, 2009Posted By
MoorieI love the AIM market. my first purchases FML & PPA are both in a nice bit of profit. actually PPA has returned me a nice rise today
where there is risk there can be big rewards. im hoping by september 14th PPA with be anywhere between 1-1.5p per share…that should give me some good money to paly with for my next venture PDF…i appreciate any feedback of your thoughts on these stocks too 
Regards,
Moorie
Posted On
Aug 28, 2009Posted By
markLooking forward to the long weekend. Hope the week ends on a high .
Posted On
Aug 28, 2009Posted By
PaulHi Moorie, will take a look at those shares you mention, cheers!
Posted On
Aug 28, 2009Posted By
PaulHey Mark, so far, so good where I’m sitting thanks to Lloyds, Renesola and China Biodiesel. Have a good weekend!