If you know me as a stock trader, you would be surprised to find out that the majority of my wealth has been created through angel investing.
In five years I have been able to completely transform my portfolio by investing in all kinds of startups.
This is not meant as a boast, only as context for the information in this article.
When other traders hear me speak about angel investing, I’m flooded with requests for more information as the questions start flying.
The most common question is this – Can a trader really make the jump into angel investing?
And the second most common question is – How do I use my trading skills to give me a leg-up over others to find the next startup deal that’s going to hit it big?
In this article, you’ll find out everything you need to know about getting started in angel investing.
We’ll dispel a common myth about angel investing, and I’ll tell you why I believe traders already have the skills for success in this enterprising new form of wealth creation.
If you are a trader interested in angel investing or just wondering where billions of dollars are flowing these days, then read on and find out more.
Releasing the Shackles
For Wealth Creation
First, let’s start with the most important idea about angel investing: Everyday investors can now enjoy as much personal wealth as the famous names in venture capital.
Unfortunately, this idea has been overshadowed by bad advice and industry myths.
There are many myths surrounding angel investing, but the most damaging one is that getting wealthy in start-up investing is only available to rich venture capitalists and accredited investors.
This was once true, but it is not true today. And it hasn’t been true for years.
The opportunity for investing in early stage startups is open to everyone today because of a law called “The JOBS Act.”
The JOBS Act is a bi-partisan law created to encourage economic growth after the Great Recession. Just about five years ago, on November 16, 2015, the SEC adopted Title III of the JOBS Act, which opened up startup investing to all investors and traders, even those who are just starting out.
Like any bill in Washington, it’s a hefty read and full of legalese. You can view the press release and download the bill yourself from the SEC website, but here’s the main point.
The JOBS Act allows private startups to publicly accept investment money from ordinary people like you and me. In other words, it removes the shackles from everyday investors that were once holding them back from experiencing 10,000% returns that were only reserved for the extremely wealthy.
Today everyone has the chance to be an angel investor, and with the right steps, they can be successful.
Under this new law, it is now possible for everyone to see huge returns by doing early stage deals. For example, a $100 investment in AirBnb would have turned into $2,066,000 and a $100 investment in Uber would have brought $1.5 million.
And traders, with their existing knowledge of evaluating stock market conditions have a leg up on most people in this new form of wealth creation.
Here’s why traders have an advantage.
Smart Analysis – Good traders think for themselves using data from trusted sources to inform their next move. No one acquires the skill of independent thinking by going to college. Often the opposite is true. Independent thinking is a skill developed from analyzing markets, making trading decisions, and incorporating models from other successful investors into your own strategy. By using these same skills, traders can find the best new companies most likely to hit it big in the future.
Good Discipline – Discipline is a key trait every trader needs. Since The JOBS Act, the marketplace for angel investing has grown. Using deal services, you can have a steady stream of new deals delivered to you, giving you plenty of choices to choose from.
However, smart traders won’t put money into every deal. They use good discipline to decide which opportunities are the best choices for their own portfolio, wealth goals, and future lifestyle.
Which leads us to the next advantage.
Understand Industry Dynamics – Before good traders make a move, they take into account dozens of variables and signals. Some traders use hundreds of signals.
But the top signal used by top traders is to understand the overall market dynamics. You trade differently if the market is up, down, or sideways.
In angel investing, there’s a similar idea. When you’re evaluating a new investment, take time to analyze the overall industry of the startup company.
The industry matters because you want to avoid mature industries with little room to expand. If the industry doesn’t have room to grow, your investment will die on the vine before it has a chance to bloom. On the other hand, finding an untapped market will give you dozens of new opportunities.
For example, you likely won’t find the next explosive startup in the electric car market. There’s too much competition and the overall market won’t get much bigger. A brand new electric car startup will be crushed like a bug under a baseball bat before it’s sees double or triple digit growth.
The same is true in industry sectors like search engines and social networking. There’s very little chance a new startup is going to grow 10,000% when competing against cut-throat giants like Google and Facebook.
To find the next big startup, traders should apply their skills and put their money into new industry sectors. Look for industries where all startups have a chance to grow, increasing your odds of success.
Timing and Patience –
Get In Early For Big Gains
One thing that traders know – timing matters. Getting in early on a trade is the difference between making a measly 2% on your money and making a mountain of money with a ten-bagger.
Everyone knows that gaining an edge is made by getting into a new market ahead of everyone else.
So how does this relate to angel investing?
Because when you’re considering a new deal, your biggest edge comes from getting into undiscovered sectors that aren’t well-known on Wall Street or the mainstream media. If a start-up is featured on CNBC or Fox Business, then it’s likely too late.
This is one of the reasons why so many investors want new deals coming to them all the time. They want to find the next big thing before everyone else. They want deal-flow.
In fact, new deals come to us regularly at Raging Bull because we’re always on the lookout for the next startup to invest in.
After we do our analysis and discover a good deal, we get in then move on. We’re always looking for new opportunities. We suggest you do the same.
And because you now have the chance for massive wealth from investing in startup companies, we think now is the right time to start your career as an angel investor.
If you’re a trader and you’ve been thinking of angel investing, you already possess many of the skills to make it happen.
To take the next step to discover potential 100000% deals, here’s what to do.
In a new report, six of the top Raging Bull industry analysts give their expert insight to reveal the future growth sectors forecast to explode in the next 10 years.
The report is called 6 Startup Sectors That Will Define The Decade and it’s available for free for a limited time.
Each of the six sectors is primed for growth in the coming years and will last for decades to come.
As you read the report, you’ll finally see that there’s dozens, possible hundreds, of start-up opportunities for angel investors to create massive wealth.
But that’s not all. By combining multiple opportunities in this report, a savvy investor could set up a string of investments across sectors with only a modest outlay of cash for each one. In other words, you are maximizing your exit while minimizing your initial investment.
In fact, the opportunities in the report are too numerous for any one person to handle all of them.
That’s why we suggest finding one, possible two, sectors that you are comfortable with and then pursuing your companies within that industry.
As you become a knowledge expert in your chosen sector, you’ll become the ‘go-to’ investor for startups to approach. Soon, even Wall Street may look to you for guidance.
The sector analysis is written by 6 of our top analysts here at Raging Bull, each with their own track record of success.
The analysts have experienced success using the same traits you’ve just read about in this article. The details in the report are available to you with no obligation other than a valid email address so we know where to send the report.
With your copy of 6 Startup Sectors That Will Define The Decade, you’ll be on your way to changing your life, your career, and your financial future by investing in startups.
If you have heard of angel investing before today, then you already know that for 100 years the ultra-rich have been using angel investing to grow their fortunes.
And because of The JOBS Act, that opportunity is now available to you. It doesn’t matter if the market goes up, down, or sideways, the six sectors in this report are forecast to boom in the next decade.
Gain access to the report now by clicking the button below. When you click, you’ll be directed to a page where you can read the complete details on the report before you download it.
Click the button below to get started on your angel investing journey and get the free report, 6 Startup Sectors That Will Define The Decade sent to you.
Save it to your hard drive and refer back to it often.
Click the button below to get started.
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