Five stocks for high-risk/high-reward investors

Risk Reward

Every investor has his or her own risk threshold. Some investors prefer to take the slow and safe approach to investing, while others are willing to accept high risk in their pursuit of quick gains.

It is always advisable to have a balanced approach, and even if you find yourself in the “safe and steady” group of investors, you should still look to put at least a small percentage of your portfolio into aggressive investments.

High-risk stocks can be stressful for investors, since they can sometimes lead to big losses. That is the trade-off you have to be willing to accept in your hunt for big gains from these securities.

I am not suggesting that you liquidate all your safe stocks and adopt to pure high-risk investing strategy, but you should have at least a few high-risk stocks in your portfolio.

By picking just a few high-risk stocks to add to your portfolio, you can minimize your exposure because you are only invested in a couple of these stocks, but you can greatly increase your portfolio’s overall return if the stocks run higher, since they will tend to outpace the overall market when they move higher.

The following five stocks all posses a certain level of risk, but appear to be decent buy candidates at the current time for investors looking to build a little risk into their portfolios.

Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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