In many cases, investments take time to pay off big. Reaching a 20 percent return on investment may take a few years or more, depending on the specific investment. However, that doesn’t mean it isn’t possible to earn 20 percent in two weeks or less.
Can You Earn 20 Percent in Two Weeks?
In short, yes, it is possible to earn 20 percent in two weeks. In fact, I’ve had a stock hit that above level of return in a matter of days.
I invested in Helios and Matheson Analytics Inc. when the company chose to acquire a majority stake in MoviePass, the movie theater subscription service. Over the course of a few days, my investment earned closer to a 100 percent return, all because I made the right move, at the right time.
While I can’t guarantee that you’ll have that level of success, there are things that investors can do to try and find similar opportunities.
Keep an Eye on the Headlines
News-worthy events can have a significant impact on a stock’s value. When a company does something that the public receives well, their stock price may rise as a result. Positive attention can draw in new investors and encourage current investors to put more money into the company, leading additional buying action to push the price up.
Similarly, negative press also affects a stock price, potentially serving as warning signs of future trouble or an upcoming opportunity. If investors view the company negatively, some will choose to sell. This can drive the value of the stock down, at times quickly.
However, if a strong company is the subject of negative headlines, a downturn in value may actually be an opportunity. When Facebook was at the center of a data scandal, prices fell dramatically. However, they also recovered fairly quickly, and those who bought during the low point saw a pretty quick profit.
Join Stock Groups Online
Stock groups and forums can be full of helpful information. Often, a single person can’t keep an eye on every stock with potential, so the group can fill in your knowledge gaps. Plus, they serve as a mechanism for monitoring investor sentiment, as people are often more than willing to express their emotions and give their opinions online.
Look for groups with investors who dedicate themselves to a variety of niches that are outside of your area of expertise. For example, if you commonly focus on the tech sector, seek out groups with people who feel as passionately about financial service, pharmaceuticals, or other industries that represent your personal blind spots.
This approach allows you to gather information outside of your core area with relative ease. However, even if the person seems like an expert in an industry, always take their advice with a grain of salt. No one can guarantee success, but they may give you some interesting ideas that are worth checking into more thoroughly.
Have an Exit Strategy For A Great Return on Investment
Often, if you are looking for investments that can earn 20 percent quickly, you are taking on a significant amount of risk. You may be counting on a new product or acquisition to be a success, or that a company can recover fast from a negative event, both of which may not come true. If a societal trend is involved, then it needs to last long enough to reach your goal, and that isn’t never a sure thing.
As a means of mitigating risk, it’s wise to have a solid exit strategy. You may want to designate stock values where you’ll sell no matter what, allowing you to walk away with a certain amount of gain or escape before losses get too great. If you prefer, you can base these numbers of the profit or loss percentages, something that may make the concept more accessible.
How to Calculate Profit on Investment
When you want to calculate the profit on an investment, you need to subtract the sale price from your purchase price. For example, if you made a share purchase for $10, then sold for $18, that’s a gain of $8.
To figure out the percentage, you divide the gain by the original price, then multiply by 100. In this case, that’s 8/10, which results in 0.8. When you multiply by 100, it comes to 80, which represents 80 percent.
However, it doesn’t take into account any fees you may incur while making trades, so you may need to work those into the equation. To do so, subtract the fee from the gain before dividing by the purchase price.
For example, if you use the example above and have an $8 gain, but also owe a $2 fee, then you subtract the $2 and end up with $6. Divide that by the original price ($10) to get 6/10, or 0.6. After multiplying that by 100, you’ll see your profit is 60 percent.
The formula can help you determine not just your profit, but also points where you may want to sell an investment based on your goals. Ultimately, it’s a pretty handy calculation for investors, so consider saving it for future reference.
Do you know how to get the best return on investment? Tell us about your experience in the comments below.