I asked a trade expert what to invest in. This is what he said…
There you are, your €50 ready and scrolling the BOTS app to see what to invest in. But you might find yourself clueless. That’s what happened to me, at least. How can you, as an inexperienced trader, know what to invest in? I asked the man, the legend: day-trading expert Arthur van der Pluijm. Let’s dig into the recommendations about cryptocurrencies, real estate, raw materials and the overall best investments for 2021.
Sit back, relax and enjoy the story!
Who is Arthur van der Pluijm?
Arthur has been my go-to expert for a while now, but how did he get into day-trading? He started over ten years ago at 19 years of age, making small profits on small investments. But after a while, his newfound addiction grew into a full-time job, making significant investments and gaining even more substantial returns. And when I say substantial, I mean substantial: 10K investments leading to 100K returns. Not too shabby, is it?
I don’t know about you, but I buy Arthur’s credentials and dare say he has gained enough experience over the years to understand what he’s talking about. The perfect man to ask what I should invest in this year: 2021.
Trends in the stock market
It’s been a crazy time. So, according to Arthur, the most important thing to keep in mind is that the individual trader (retail) exposure is insanely big. Everyone tried to buy shares during the lockdown — what else did they have to do? This created a massive exposure to the individual trader side. Statistically, looking back at the past two hundred years, this often doesn’t end well for the individual trader. If as many individual traders buy into stock as they did this past period, they create the perfect environment for big shareholders to start unloading their shares.
If they have a billion euros worth of shares — they need buyers to unload these shares: they need a market. When all these individual traders decide to start investing in shares, the big leagues have the market they’ve been looking for to unload and sell their shares. It’s a simple supply and demand situation: the higher the demand, the higher the price you can put on the supply! Now, we’ll never know what’s ahead, but what we do know is that we’re in exciting times from a day-trading perspective.
Invest in the energy sector
This all means that if you decide to buy shares now, you need to be very picky about what you buy. You want to buy shares that have very high growth potential. Think of all the developments that are happening in the world. There is lots of durable and environmentally friendly energy being produced, for example, but there’s no way to store that energy yet. Companies working on solutions have high growth potential — and might be worth your investment.
Make sure to also look into commodities such as the materials in high demand during this energy transition. Creating a storage solution to store this clean energy asks for the use of specific materials. These materials might just be your new investment opportunity.
Invest in space
Also interesting is investing in space. Because let’s be honest, space is very cool, and there is lots of growth potential. Companies like Virgin Galactic are interesting growth companies to keep an eye on. But maybe even more interesting are the less known companies lining up to become leading suppliers of parts to the market. Also interesting is the price they currently sell their shares for.
Now, if you were to buy shares at a low price of one of those companies, and this company manages to get the ball rolling and become a leading supplier to an industry that generates a massive amount of transport to planets in the universe — you can imagine what the worth of your shares will do.
Long term investments vs quick returns
These are a few exciting long-term investments. But it can take years and years for you to see some returns. So what you decide to invest in ultimately depends on the term you’re happy with. No matter what your budget is or what your preferences are, you have a lot of choices!
Would you like to learn more about the BOTS app or get some more trading in cryptocurrency tips? Just continue reading below.
See you soon!
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.