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High Risk Investing: When I Turned One Thousand Dollars Into…

high risk investingI marvel at how Wall Street creates wealth, even sometimes through high risk investing. Purchase a few 100 shares in a small company that hits it’s stride or a start-up that goes supernova and you could be a millionaire inside a decade.

That’s not the norm, for investors as it usually takes multiple decades of steady, solid investing to create significant wealth. But it does happen from time to time, as we all have seen.

That’s why we get caught up in new companies and try to buy in on the opening day of trading. IPOs (initial public offerings) tend to be extremely volatile, which is why investors are better off waiting for several months before they decide to purchase shares. (Unless you were investing in the 1990s bull market Internet frenzy when pretty much all IPOs skyrocketed on day one. Heck, mygrandmother.com would have opened 50 points higher!)

What if you could purchase shares in a company before it went public though? That would be stratospheric high risk investing – putting money into a company that might not even make it to market. Technically, I wouldn’t even call that investing. More like speculation.

Would you do that given the opportunity? Put money on the line with a chance to hit it big or lose it all? Here’s the story of when I did.

My High Risk Investing Venture

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