Why we don’t invest in large companies such as Amazon?

Unless you make millions of dollars, it will be almost impossible for you to make extra money by investing in large companies. Let’s say today, you want to invest $3,600 into Amazon and you were able to buy 2 shares at the lowest price of the day ($1,745.68). This will represent a total cost of $3,491.36 (2 x $1,745.68). If you sell all your shares now, you will make $3,530.48 (2 x $1,765.24). Therefore, your profit will be $39.12 ($3,530.48 – $3,491.36).

Now, let’s assume that our academy taught you how to find stocks that vary between 5% and 100% in a day. I will ask you to use only $1,500 of your money to buy CPRX ( Catalyst Pharma) for example (see picture above). Let’s say you bought 298 shares at the lowest price of the day ($5.03). This will represent a total cost of $1,498.94 ( 298 x $5.03). If you sell all your shares now, you will make $1,588.34  (298 x $5.33). Therefore, your profit will be $89.4 ($1,588.34 – $1498.94).

In conclusion, you were able to gain a daily profit of $39.12  by investing $3,491.36 into Amazon (AMZN) and a daily profit of $89.4 by investing only $1,498.94 into CPRX. Therefore, investing in small companies gives you more profit in a daily basis (although the risks are high) than large companies (usually large companies stocks are less volatile).

This example showed only 5% gain. So, what about RBZ that vary over 200% today (see picture above). What about if you had caught 10% of RBZ, this would have been $178.8 ($89.4 x 2) gains. What about 20%, your profit would have been $357.6. what about 40% , your profit would have been $715.2 and so on. Only the the sky is your limit! That’s why we (Stocksnipers) prefer small companies than large ones.