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. That is why investment clubs and mutual funds are created – to pool retail investments, so they command higher interest, which is then distributed to the individual contributors.
If you really want to play the investment game, you must develop your capacity to pool together larger sums through consistent savings, and through your networks (other people’s money). Now let me write about networks.
People will only 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, after all. Your investment network is only as good as the number of people you know, who are wealthier than you. Yes, doing business with your peers is good, but they can’t 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 product. Availability will involve meeting new people, attending events or volunteering for things.
If you haven’t begun to pool money together through savings, start now. If you are not meeting people who are more successful than you, do same.