How to accelerate your profits in the stock market

Buying and selling stocks is a good way to make a living. After all, trading is a way to exploit the daily movements of the market to your advantage.

Despite this, many people wish for a method to accelerate their profits in the stock market. After all, everyone wants to make more money.

In this article I explain how to accelerate your profits in the stock market.

Invest in Growth Stocks

Perhaps the number 1 strategy for accelerating your profits is to invest in stocks of growth companies.

Growth companies are the ones that have prospects of quick growth and expansion. This can happen for a number of reasons:

  • Better technology.
  • Fast increase in clients.
  • More efficient advertisement.
  • Exclusive rights over certain important resources.

When two or more of these reasons combine, you can have companies with explosive growth.

Investing in these companies may seem risk at first, but it also present extraordinary opportunities for growth of your investment.

Think of some examples of growth companies that we have seen in the last few years, and you’ll see what I mean:

  • Apple
  • Netflix
  • Tesla
  • Google
  • Amazon

All these companies have started as small growth companies, but have reached incredible levels of success thanks to some powerful market advantages

Using Margin Leverage

Another common way to get fast profits in the market is to use leverage.

Using leverage means that you’ll be using other people’s money to buy stocks and getting higher profits.

One way of doing this is to buy stocks on margin. Most brokerage companies offer margin accounts, where you can borrow up to 50 of the cost of the stocks.

This means that you can get more profits when you’re portfolio goes up, however you can get bigger losses too. It important to understand that higher leverage can become a problem if you don’t use it well.

If you have a good trading strategy, margin leverage can be an excellent way to increase your returns.

Using Options

Another way to increase your profits is to use options. An option is a contract that gives you the option to buy or sell a stock at a certain price. An option usually costs a fraction of the price of a stock, so it may be a great way to participate on the growth of certain stocks.

As any other strategy, buying options is also subject to risks, especially because option lose their value after some time.

Leveraged ETFs

Another possibility for accelerated profits is to use a leveraged ETF. These are ETFs that multiply their returns using leverage.

For example, some ETFs have results that are twice the returns of the original instrument. There are even some ETFs that return three times the original gains.

Using these ETFs, you can ride quick move in the market. Most of these instruments are created for short term trading, so you should be very careful with them and avoid holding such ETFs for long periods.

Consider Your Risks

As with any other trading strategies, using leverage and accelerating profits should be done with care. When paired with a great money management strategy, these methods can make you very rich. But if badly used, they can destroy your portfolio.

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