What’s better…
Buying $5,000 worth of a $5 stock? Or…
Buying $5,000 worth of a $500 stock?
Traditionally – most people tend to go with the $5 stock…
Why?
Because many investors seem to believe that a modestly priced stock has a greater chance of hitting those higher numbers than a stock priced significantly higher – it may not seem as likely to see a $500 stock jump to $1,000 as seeing a $5 stock jumping up to $10…
However…
We’re living in a new market – and it’s becoming more apparent than ever that the OLD ways of doing things just isn’t cutting it in today’s fast-moving, fast-paced investing world.
There is a better strategy…
“Buy big… avoid small” – and this strategy could be the secret to making more money than you could have ever imagined.
So…
Why is it that we’re talking about buying the “big boys” as opposed to staying with the once tried-and-true method of finding a small stock and then riding it as it HOPEFULLY starts ticking up?
Well, it has to do with the era we’re in…
It’s no secret that we’re in the longest bull market the world has ever seen – an unprecedented run that has seen new record highs on a consistent basis.
The entire market is pushing up that hill…
So, why not buy a few small stocks to take advantage of this upwards climb?
Well, the problem comes down to the overall performance of the market.
Understand, if you come across a $5 stock that looks promising – you may want to take another look…
Because if this stock hasn’t moved much in today’s market – the chances are – it’s not going to.
It’s not like there’s some kind of rocket fuel that every stock can tap into when the going gets rough…
Sure, every once in a while, a company will hit on the right service or product and its popularity sends it soaring – but that doesn’t happen as often as you may think.
That’s a VERY rare occasion.
What’s more likely is for a stock to chug along at a steady pace – picking up price spikes on good news or profitability.
If a stock in today’s financial atmosphere has only worked its way up to $5, then that stock most likely isn’t going to be the one to make you any real money…
Especially if that stock has been around for any length of time.
Believe it or not, the longer the stock has been trading in the single digits – the LESS likely you’re going to make any real money on its meteoric rise – especially if it hasn’t had any significant price jumps and it has been around for a year or more…
Odds are… it’s a lame duck.
That said…
Large companies are making their shareholders money left and right.
Take current GorillaPick, Amazon (AMZN), for example…
While AMZN was only recommended to GorillaTrades subscribers again back in March – the stock has been VERY good to investors over the past year.
In fact, at one point, had you gotten in at the right time – you could have recorded a whopping 42% profit!
This is on a stock that has been priced over $1,000 since 2017.
Ever since 2019 began – Amazon shares have been on tear – as at one point the stock was up a HUGE 30% – and even after its recent pullback, shares are still up roughly 20% from the beginning of the year.
Gone are the days of finding that small “Diamond-In-The-Rough” and hoping it shines up…
We’re in a NEW era of investing and it seems that more and more – the big boys are going to be the better and SAFER bet.
But Amazon isn’t the ONLY big boy on a tear in 2019…
Google (GOOG) has been on a similar run – watching shares jump 26% at one point – and even after its recent pullback that seemed to affect the ENTIRE market, shares are still up a healthy 12%.
That’s a nice return in less than six months for a QUALITY stock of Google’s size.
This is why I believe this should be the new way of doing things FOR ALL investors going forward…
It’s not just one company – it’s MANY.
And if the experts are right – this bull market is going to continue for a LONG time – maybe even another decade!
If that happens – this strategy will make even MORE sense.
Now, again, you don’t have to take my word for it…
Research some of the big boys out there and see how much they’re moving.
Given the choice – I’ll take a steady double-digit return on a quality stock any day of the week over the CHANCE of a triple-digit return on a high-risk stock.
Which stock do you think has the better chance to make its investors money over the long haul?
While we’ve been promoting this strategy at GorillaTrades for decades, it seems that many average investors simply never got the message.
Hopefully, this will help you in your investing going forward…
And if it doesn’t – you can always give GorillaTrades a try!
We’re always here…
Just a click away!
Regardless, do yourself a favor and look into this strategy…
It could take your investing to the next level.
“You can’t jump from little things to big things. It just takes time and patience.” – Nadia Comaneci
