If your aim from investing in the stock market is to maximise your wealth then there are a number of things you should do and also a number of things you shouldn't do.
The single most important thing you shouldn't do is lose money!
That sounds obvious but it isn't easy as the stock market is filled with landmines just waiting to take your hard earned dollars.
Because of the dangers of investing, this regularly leads investors to buy blue-chip stocks such as Telstra Corporation Ltd (ASX: TLS) to minimise their chances of losing money.
Not losing money is one thing but significantly growing your wealth is something else.
The problem with blue-chip stocks is that at best they will help you get rich slowly. That's fine but for investors who either need to grow their portfolio at a fast rate or desire a larger level of wealth blue-chips just might not cut it.
Small-caps could be the answer.
Historically, the small-cap indices have outperformed the large-cap indices over the long run. Naturally smaller companies can potentially grow on average at faster rates than large ones, however they also involve larger risks.
If you're looking to super-charge your portfolio by investing in smaller stocks then the following three fast growers may be of interest.
Nearmap Ltd (ASX: NEA) is priced for perfection but if it can pull off its plans to enter the US market with its leading geospatial mapping technology then the company's fast earnings growth could continue.
Cover-More Group Ltd (ASX: CVO) is a leading Australian travel insurance agency with high growth prospects internationally. As a recent addition to the ASX the company recently reported results which beat its prospectus forecasts for FY 2014.
Emerchants Ltd (ASX: EML) is a niche provider of pre-paid financial cards. The group services a diverse range of organisations including governments, not-for-profits, and corporate clients. It recently inked a deal with leading bookmaker Ladbrokes.
