There are several forms of extreme investing you can explore,
and each requires a different level of capital to get started.
Extreme investing in IPOs, for example, requires more time but less
capital than other forms of extreme investing. Your time will be
spent researching your prospect and strategizing your timing. These
days, you can invest as little as a few thousand dollars in an IPO
and make a small fortune in a month—or you can lose it all in
a day. Naturally, the more you put at risk, the greater your
potential reward.
Trading options also requires little start-up capital. You can
buy an option for a few hundred dollars and turn that into a few
thousand within days or weeks, but the risk of losing every dollar
you spent on that option is significantly greater than in other
investment scenarios. That's because, unlike owning stock in a
company, stock options can expire worthless.
Whether you hope to pursue extreme investing two hours per day
or 24/7, you need to treat this endeavor as a business. In fact,
you need to think of yourself as a start-up, with a plan and seed
capital and all the ifs and maybes and trial and error that
characterize every start-up. This means that you may need to factor
in a period of loss at the start. Allow for a sufficient start-up
period and enough money to support yourself until you're
generating income.
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