How Creative Investors Put Their Capital to Work

Have you ever wondered how creative investors find ways to earn a solid return on their money year-round, even in turbulent economies? It’s a logical question. The answer is that they use a variety of methods, tend to keep their assets spread out into several different classes, and check on performance regularly. Some opt for day trading to capture returns even in highly volatile scenarios. Before the closing bell each day, they put everything in cash and get ready for the next day’s action. Others play the penny stock market, which allows them to purchase large numbers of shares for a low total price. If even one or two of their selections take off, the earnings potential is enormous.

Cryptocurrency staking and copy trading are two other choices among the experienced crowd. Both approaches are relatively new. Staking leverages the power of cryptos that pay high interest on carried balances, while copy traders lock into the knowledge of experts and follow their buying and selling activity. The variety of tactics is astounding. Some choose to make money as angel investors in small startups, as franchisees, or as house flippers. There are more ways to earn a solid return than most people imagine. The following are among the most creative strategies used by today’s top investors and traders.

Penny Stock Investing

Source: thebalance.com

Among creative investments, penny stocks are a worldwide favorite. Many put their capital to work in these low-cost shares that offer lots of room for growth. Corporations that sell low-priced stock tend to be newer entrants into their sectors and are often in the process of introducing products and services. It’s possible to buy hundreds of shares of penny stocks without stressing your budget.

The best way to get started is to choose companies that issue the shares. That’s why it’s imperative to review a reliable watch list that can give ideas about which shares to trade at any given time. The list at WarriorTrading is one of the best for newcomers who need some ideas about which penny stocks have the greatest potential. While not all such shares perform well, it’s not unusual for a given low-cost issue to double or triple in value within a short period of time. Even the best blue-chip corporations can’t match that kind of success.

Copy Trading

Depending on if you are a hands off or hands on investor, consider copy trading if the hands-off approach suits you best. Ask your broker about how to get started. Firms that offer it to their account holders don’t charge for the service. You typically choose from a list of experts based on their track records. All information is fully transparent. That way, you can select an expert trader to follow based on any criteria you deem important.

Buying Franchises

Source: bellshah.com

Purchasing a franchise is not a low-cost option. However, if you have excellent credit and are willing to spend a year or more shopping for the right opportunity, the financial rewards can be immense. It’s up to you to choose the type of business and the amount of oversight needed. Some franchises can be fully operative, with your role limited to investor status only. However, in industries like fast food and personal services, you might be required to have a more active daily role in running the operation. If you decide to take a shot at becoming a franchisee, speak with an investment counselor who can guide you toward the most profitable openings based on your preferences, financial resources, and skills.

Flipping Houses

House flipping is the champion of creative investing tactics. It’s important to do a real estate investment analysis and thorough research on the geographic area where you’ll be operating. Also, familiarize yourself with the real estate market. Consider studying for a license. You don’t have to have one, but it helps transactions move more quickly if you do. Build relationships with local contractors who can do the fix-up work. The first few deals you make will call for a significant capital expense. But after that, profitable sales can fund your entire operation as long as you actively seek new houses to flip after each sale.

Acquiring Investment-Grade Wine

Source: vinfolio.com

As alternative investments go, wine is one that has been around longer than most. Perhaps only gold beats out vino in the longevity category. Both assets have been traded in public exchanges for thousands of years. Today, you can purchase individual bottles of high-end wines from dozens of online sellers. Just like experienced coin collectors, you store your goods in a safe place and wait for prices to rise. The beauty of this strategy is that wine prices tend to rise with each passing year. If you make an unwise purchase, you can always drink the leftovers.

Backing Cannabis Startups

No matter how much of your capital you want to put at risk for the sake of earning a profit, the cannabis niche offers opportunities for everyone. The segment is booming as more states pass legislation that loosens the laws about recreational use of the plant. Dozens of peripheral markets have popped up, including the sale of grow lights, storage facilities, DIY kits for home gardens, and more. Check internet resources that list startup companies. Most are in search of financial backers but remember that only the largest and most experienced sellers offer realistic opportunities for profits. There are several crowdfunding sites that specialize in cannabis startups.

Source: economictimes.indiatimes.com

Flipping Cars

You should check with local laws on this one because some cities are very strict about paperwork and such. However, the COVID pandemic put this alternative technique into overdrive. Plenty of out-of-work adults discovered that they needed zero mechanical ability to flip vehicles for a profit. It’s absolutely necessary to build a relationship with a trusted, experienced mechanic. You’re essentially sharing your profit with them. Acquire fixer-upper cars, trucks, and vans by scouring local ads and attempting to beat the market value. Consider dealing with individuals who are looking for quick cash and have personal reasons to sell. That’s where the bulk of your profitable buys will come from. Then head to the mechanic and a paint shop to repair the engine and make the vehicle look like new before selling it for a profit.