Let me share something about investing. In any investment scenario, the little man – the retail investor – always gets the shorter end of the stick. It’s just the way it is. Bulk money commands a higher investment premium than little sums. This is why investment clubs and mutual funds were created – to pool together retail investments, so they would command higher interest, which is then distributed to individuals based on their equity contributions.
If you really want to fully play the investment game, you must develop your capacity to raise large sums through consistent savings and through your networks (other people’s money). Now let me write about networks.
People will do investment deals with you if you have a track record of credibility and/or if they know you. It is their money and reputation on the line. Your investment network is only as good as the number of people, who are wealthier than you. Yes, doing business with your peers is good, but they may not be able to provide leverage. For that, you need those ahead of you. To access those types of networks, you must be seen to be responsible, you must have some equity you are trading and you must be available. Your equity may be your family legacy and name or the soundness of your ideas. Availability means meeting new people, attending events or volunteering for things so you can expand your networks.
If you haven’t begun to pool money together through savings, please start now. (Here’s a relevant article.) If you are not meeting people who are more successful than you, do same.