Once a small group of people, penny stock brokers are becoming increasingly in demand, due to the interest in penny stocks themselves. Penny stocks have a reputation for being very volatile and explosive, as it is not entirely strange to see them jump up in price by large amounts, nor is it weird to see their prices simply plummet all of a sudden. When looking for penny stock brokers, it is important to consider the commissions and fees that must be paid per trade. This is because penny stock traders usually make a large amount of short-term trades as part of their investment strategies.
There are a few things that you should look at when deciding upon a broker. For example, consider the commissions, the minimum deposit or funding amount, whether there are any special sign-up incentives, or whether there are fees for inactivity.
Commissions are often one of the more obvious ways to decide between penny stock brokers, as the smaller commission amounts obviously mean less money that you pay out, and more money that you can invest, right? While this may be true, it is dangerous to consider brokers simply according to commission amounts, especially when there are many other elements to being a great broker or broker site.
For example, if you are starting your investment career with a minimal amount of money, the minimum funding amount (if any) will certainly take center stage in your decision. Also, many popular web sites will offer deals where you get a certain amount of free trades when you sign up. This can be a great way to save a little money as you get introduced to this type of investing.
It is important to make a wise decision when choosing between penny stock brokers. After all, there are a lot of factors to consider, many of which could have a measurable effect on how much money you can make. If you have an idea of your penny stock trading strategy or knowledge about the market itself, you will be in a much better position to select the best broker for you.
With a long history of small cap investing and micro cap funds, Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.
Our three decades of experience provide an exceptional level of insight that is reflected in our high-conviction portfolios.
It is widely acknowledged that you have to speculate to accumulate and it's absolutely true. Nothing ventured, nothing gained, but surely there are ways to protect you from the ups and downs of a fickle stock market and the ultra volatile penny stocks exchanges.
One method which purports to protect the best penny stocks investor from fluctuations in share value is cost averaging also known as dollar cost averaging, pound cost averaging. Yen cost averaging...depending on the currency you are using.
How Cost Averaging Works?
The method works by spreading the risk of making a large purchase on a single day which may or may not be the bottom of the market by splitting the purchase up over time. In most cases the investor purchases an equal value of shares in a particular company every month over a year for example.
So rather than buying $1200 worth of shares in one go the investor makes 12 x $100 purchases over one year. Since the value of shares fluctuates it is not uncommon for $100 monthly purchase of shares to result in a different number of shares on every single transaction.
On purchase days where the value is low the investor acquires more shares for their investment. On days when the value is high the investor acquires fewer shares for their investment. At the end of the year the investor should in theory have paid an average price for the shares...not too high but not an absolute bargain either.
Cost averaging has in effect reduced the impact of daily fluctuations over the year. If the penny stocks company was a good investment and the share price over the course of the year has had an upward trend then with luck this trend will be matched by your portfolio.
Obviously the opposite is true as well but one of the most appealing aspects of this method is that if you do find yourself in the unfortunate position of having invested in a turkey the gains that you made buying when the shares were dipping can actually offset losses quite significantly.
There are investors who swear by adoption of this strategy as a prescription when something in your portfolio is heading south.
If this is so safe then why isn't everybody doing it?
There are Drawbacks to Cost Averaging
Firstly for a small penny stocks investor the cost of each transaction relative to each purchase can be significant and secondly a strict cost averaging investor does not act on instinct and sticks pretty religiously to a schedule.
There is no substitute for good research and analysis so if a penny stocks investor is confident that a company is worth investing in then it may actually be more prudent to watch the share price and make a lump sum purchase when the shares are low.
Certainly this is true speculation and the gains can be significantly larger if you get our timing right. Still if you mess up you can always resort to cost averaging as a means of covering your losses.
Consult with our experts at Paradigm Capital Management if you want to learn more. We at Paradigm Capital Management are focused on a single minded purpose: To ensure that our clients have the best information on which to base intelligent financial decisions in pursuit of superior investment performance.
For more details, visit here: http://www.paradigmcapital.com/
Investors are always looking for information, market analysis or a hot tip to help them decide on their investments. There are a number of websites, like MSN Mooney, Google Finance, and CNBC that are dedicated to providing news and updates on the stock market. Investors can subscribe to publications like the Wall Street Journal and the Economist for information, or listen to Podcasts by the Motley Fool and other experts. If you are looking for news and information about stocks traded on the New York Stock Exchange, The American Stock Exchange, or the NASDQ, you have plenty of resources to help you make good investment decisions. If you are looking to invest in the stock market, finding analysis, information, and research about these stocks can be challenge. Whether you are new to the stock trading game or you are a seasoned investor, you are always on the lookout for good, reliable, penny stock news.
These stocks, also known as micro- cap stocks are inexpensive stocks mostly bought off market, or over the counter and they generally trade at less than $5.00 a share. Considered a risky investment, these stocks are traded by new companies testing investor interest, or by companies who have been de-listed from the major exchanges.
The NASDQ website is a good place to start your search for penny stock news. This site focuses on these stocks, or micro-cap stocks that have been delisted from the big boards. These stocks have filing and regulatory responsibilities, so many analysts feel these stocks are at less of a risk for price manipulation than other penny stocks. You can also find research about these stocks on some aggregate sites, like Google Finance and Yahoo Finance.
Once you have done some broad research you are ready to take a look at some websites devoted entirely to penny stocks. These websites offer information about their favorite stocks, as well as limited market analysis. These websites offer tips for free, but usually require you to submit your contact information if you want to dig a little deeper.
These sites also offer these stock news in their online chat rooms and discussion forums. Access to this area of the site may be restricted to subscribers. You can quickly and easily subscribe (for a small fee), online. Many penny stock traders post their picks on-line, allowing subscribers to see if they are buying and selling the stocks they are promoting. Over time, you'll be able to see if these investors' picks have panned out. Chat rooms and discussion forums are a good way to stay on top of hot stock news, tips, and trends.
The penny stock market is considered to be a riskier investment than the traditional blue chip or officially listed stocks. Finding a reliable website or other source for updated penny stock news can be a challenge. Once you have found a source or site that you trust you should use those tools to help you pick penny stocks and manage your investment portfolio.
For more information you can consult with our experts at Paradigm Capital Management. Paradigm Capital Management employs a disciplined, bottom-up approach when it comes to small cap investing and micro cap funds, with an emphasis on fundamental analysis and extensive management contact.
We have the expertise when it comes to small cap investment to achieve your financial goal, contact us at (518) 431-3500
Investing, nowadays, is not as easy as it might sound. Be it investing directly in equity or through mutual funds, every way requires a considerable amount of research and effort to choose the right stock or fund, manage it, and acquire returns. In case of mutual funds, it becomes difficult for a person if the chosen fund fluctuates according to the market condition. Yeah! We are talking about small-cap mutual funds here. These funds are too much volatile in nature and could easily leave their investors bewildered with their constant fluctuations.
But, one must not be risk averse and turn his back on the funds of this category. The most important thing that investors are required to understand is investment in equity comes with risk which changes in line with the size of company. Risk and returns are directly proportional to each other in case of small-cap funds. The more you dare to take risk, the more is the possibility of getting rewarded with high returns.
From the past three years, we have been witnessing the exceptional performances of small-cap funds which have lured too many investors. But, some investors who are risk averse assume that these mutual fund investments are like pie in the sky because of obvious reasons. For these investors our experts at Paradigm Capital Management have some tips that can be kept in mind prior to the investment in these mutual funds.
Research It Out
It is a known fact that a fund's past performance does not guarantee its future performance. But that does not mean you should not do prior research about its investment strategy, fund manager, past performance, etc., before investing in it. Certainly, if you desire to acquire handsome returns by investing in small-cap funds, then you are required to spend sufficient time researching about it.
Long-Term Investment Horizon is the Goal
As discussed earlier, small-cap funds are highly volatile in nature and tend to fluctuate regularly with bear and bull phases of the market. So, investing in them with a short-term perspective is not a solution. You must work on the adage-'Patience is the key.' If you want to know how these funds have been performing, you have to look at their past 5 or 10 years' performance. So, if you are going to invest in these funds, you must invest for a long stretch of 5-10 years.
All Eggs in One Basket- NO!
Diversification is a capacious term which when applied to investing means buying more than one type of equity instruments. Diversifying a portfolio helps in distributing the risk and minimizing the losses. Because sticking to only one investment style which makes you hold on only small-cap funds could leave you with loss when the market goes down. A well diversified portfolio which contains a mix of stocks can help you enjoy profits even when these funds hit down.
Timing the Market-NO, Time in the Market-YES!
Timing the market has been considered a foolish activity by many of the financial industry experts. Timing the market is not only nerve-racking, but also risky for your investment portfolio. You can never predict the market and its certainties because you never know which factor will influence the market sentiments hence, driving it up and down. So, best way is to stay away from the habit of timing the market and start your investments as early as possible with a long-term goal.
Investment Philosophy Suitability
The investment philosophy that the fund follows must be in line with the portfolio objectives. This aspect of investment is very crucial during the times of heightened volatility. As being an investor staying patient at the time of market hit is very difficult, so if the investment strategy and philosophy must be in a way that should support your risk profile and investment objective.
Though we cannot anticipate how a small-cap fund would perform in a particular market condition, but if you keep the above tips in mind, then investments in these funds will also be beneficial for those who fear high risk. If you haven't invested in mutual funds yet then you must seek financial advice from the experts at Paradigm Capital Management and start investing now.
Investing in penny stocks is often considered to be a lucrative option as they can develop into big stocks, bringing massive wealth with them. However, it is rare that a penny stock will develop into a mid cap stock. The high risk involved in trading these stocks and their susceptibility to scams scripted by manipulative brokers often keeps seasoned investors away from them. This alone could be part of the reason why they rarely become mid cap stocks.
Many believe that the capitalization of a company has nothing to with the price of its stocks. But there have been instances when many of these micro-cap stocks grew up to become small cap or mid cap stocks. However, these examples are so few they could be virtually counted on the fingers of one hand.
It takes intelligent investors and a lot of effort on the part of the management and the brokers to enable a stock to grow. Trading micro-cap stocks can often be an expensive proposition, so investors will typically limit what they invest in these stocks. The high amount of volatility and risk involved prevents them from doing any more than this. On the other hand, the mid-caps are considered as the most reliable way of generating long term wealth.
Mid cap stocks have lesser operational risk than the small cap stocks and are barely affected by changing market trends. This is not the case with penny stocks. There have been several instances when lucrative looking small cap stocks proved to be nothing but scams.
These stocks were de-listed and the investors faced large losses as a result. According to experts, trading in small cap stocks is far riskier than trading in blue-chip, mid-cap or large companies. With penny stocks you have a reduced chance of making money and more than a 90% chance of losing money.
Their performance is more investor-based, while that of big companies is based on fundamentals. Penny shares are traded on the pink sheets and many of them are not scrutinized by the SEC. Apart from this, the lack of liquidity and their high volatility has made these stocks vulnerable to scams.
Brokers take pains to show that certain worthless stocks are doing well. They often make transactions into their own overseas accounts to dupe investors. Most penny stocks are known to have lost their entire value - spelling large losses for the shareholders.
If you need any help then consult with the experts at Paradigm Capital Management - a trusted small cap investing company. We at Paradigm Capital are focused on a single minded purpose: To ensure that our clients have the best information on which to base intelligent financial decisions in pursuit of superior investment performance.
For more details, visit here: http://www.paradigmcapital.com
What basically are hot penny stocks?
Well, its definition can vary depending on whom you ask. But in general, a hot penny stock is basically a stock that rapidly increases in price with numerous investors or buyers getting into to buy shares of it. However, it would be wise to do a bit of research before you consider a stock "hot". This is because there are many factors that contribute to the popularity of a stock and it isn't always because that particular stock is "hot". Sometimes a professional promoter can make its stocks seem that way even when they are not.
What to be Wary of?
Often, hot penny stocks can have certain pitfalls and traps which can get a newbie investor into a whole lot of trouble. Therefore, one must know what to avoid in order to eliminate the chances of accidentally purchasing undervalued stocks and subsequently selling them after a short period of time in order to receive a quick return on what you have invested. One of the best ways to avoid this is to acquaint yourself with the background of the stocks you intend to invest in. Make sure that you know the stock's history, basically how it has performed in the past, and if you see anything that doesn't feel right then you should think twice about going through with the investment.
You should also check the company's current financial performance, their business plans, future investments as well as their top management. It might seem a little too much but doing this would help you protect your investment.
Hot Penny stocks can be a bit difficult to track because of the lack of information and because these stocks are often traded on pick sheets. However, you would be able to keep yourself up to date through newsletters that are provided by hot penny stock brokers. These newsletters would provide you with information and background material you would need in order to help you familiarize yourself with a particular hot stock.
How Much Should You Invest?
Now, this is a question that many beginners ask. Whilst there isn't any standard amount or limit that you should impose upon yourself, there are certain things that you always have to keep in mind. Ask any experienced investor and they would inform you that the only way to make sure that you don't lose too much money is through investing only what you can afford to lose. Point is, loses are inevitable in this kind of business and as such, you should be ready for it beforehand.
If you are serious about getting into trading hot stock then it would be good to do the necessary research and learn as much as you can before you make any move. It would be good to observe and learn from professionals like those at Paradigm Capital Management, as they could provide you with very useful information. Needless to say, gather all the knowledge that you can, filter and starting building a foundation for your own trading strategy. After all, in this business, tools are just there to assist you; knowledge would always be one of your greatest assets.
Also read: Trading with Good Penny Stock Listing Options
This is exactly the same question that bugged the mind of a MIT student who was majoring in applied math. He was interested in finding penny stocks before everyone else that were on the verge of making a major breakout. After trial and error he was ultimately able to find a secret mathematical formula that predicted penny stocks about to make an explosive move.
Many investors don't take penny stocks seriously. You won't find penny stocks being mentioned in most of the major financial media. The reason is simple penny stocks don't get traded on the regular exchanges rather they get traded on the Over The Counter Bulletin Board OTCBB and on the Pink Sheets. But imagine, a $0.1 per share penny stock skyrocketing to $3 per share in just a matter of a few days. This can be a 3,000% gain in just a matter of few days. If you can capitalize it with your $1,000, it can easily turn into $30,000 in just a few days.
James Connelly a.k.a The Stock Prophet was able to turn his $1,000 into $1 million in 1 month with just 38 penny stock trades using his secret mathematical formula. Read this article to discover the secret mathematical formula that he was able to discover that led him to turn his $1,000 into $1 million in just 1 month!
James Connelly was a brilliant student from the very start. He was interested in stock trading even as a teenager. So, his father taught him how to read stock charts and quarterly earning reports. His dad even subscribed the Wall Street Journal when he was just 16 years of age.
Developing an understanding of the stock market at such a young age gave James an edge. He was fascinated by the unlimited wealth potential that stock investing offers. The stock market to him was a puzzle. He wanted to solve the stock market puzzle.
As a freshman in the college, he opened his first online brokerage account. He started just like any other stock trader analyzing stock charts and trading patterns, using resistance calculators, analyzing financial reports and relearning fundamentals of stock trading.
But soon, stock investing became an obsession with him and he started skipping classes from the college. He was making more money as a stock trader than most of his professors. To James, spending time day trading was more exciting than listening to the boring lectures in the class.
He would pass his time analyzing trading patterns, volume, resistance and other identifiable patterns. He was convinced that he could unlock the secret mathematical formula that could give him the edge and tell him about a stock making an explosive move before anyone else did.
Eventually, James was able to identify four variables that are secret to identifying a breakthrough stock. To this day, James is not willing to disclose those four variable to the public. He was offered a lot of money to disclose his secret by many wealthy investors but he wants everyone to have the same opportunity as he does.
What he is willing to disclose is the role the Psychological Support Levels (PSL) play in his secret mathematical formula in identifying breakthrough penny stocks. While not disclosing his secret mathematical formula that identifies breakthrough penny stocks, James is willing to talk about the importance of PSL in identifying breakthrough penny stocks.
PSL is nothing new for traders and investors. It helps in explaining why a stock can be sold well below it's actual value. Many investors and traders know this that PSL is a very important factor in identifying an under valued stock. But finding an undervalued stock is one matter and finding a breakthrough stock or for that matter penny stock is another matter.
PSL is still the key or what you can call the missing link when combined with the 4 variables that James discovered and never discloses gives you the secret mathematical formula that identifies breakthrough stocks. The proof that James formula works is his 38 penny stock trades that turned his $1,000 into $1 million in just under 1 month!
If you need any help with your investment goals, consult with the experts at Paradigm Capital Management. The firm is a trusted leader in penny cap investing and employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.
Also read: Make High Returns Investing in Commodity Hedge Funds
The two prominent reasons to include hedge funds in any investment portfolio is their ability to reduce risk and add diversification. Analysts or portfolio managers manage these alternative investments by using pooled funds along with various strategies to generate an active return for their investors. Investing in hedge funds may create wealth for the investors, regardless of overall market or index movements. Private wealth management firms have been instrumental in generating the interest of high net worth retail investors to divert some of their wealth to hedge funds.
In this write-up, we would discuss the advantages of investing in hedge funds. Let's take a look.
One of the key advantages of investing in hedge funds is their flexibility. Hedge funds have fewer limitations and they apply a wide range of investment strategies that is not feasible for mutual funds. Some of the investment strategies, for example, include short selling, using arbitrage, and use of derivatives and leverage. Simply put, portfolio managers get more freedom to formulate and implement their trading strategies as compared to mutual funds.
Many investors invest in hedge funds as a strategy to create pooled funds and reduce risk. These funds are capable of generating bond-like steady income even during the times of low-interest rates and keeping up with inflation. They increase a portfolio stability even when the most traditional investments are either highly unpredictable or are underperforming.
Hedge funds can enhance the overall returns of a portfolio. One of the strategies is to add a high-return hedge fund that can boost the returns. Portfolio managers decide their strategies based on the forecast of future prices of currencies, bonds, equities or commodities. They also often recommend maintaining a low-risk portfolio through the use of a low-volatility hedge fund.
Undoubtedly, investing in hedge is an effective way to enhance returns and reduce losses, they, however, have some drawbacks such as liquidity and transparency. Due to this, portfolio managers need to carry out the portfolio building process by selecting hedge diligently. It is, therefore, advisable to consult a reputed private wealth management firm that can help you select and manage hedge fund efficiently, and add value to your portfolio.
For more details you can consult with the experts at Paradigm Capital Management - an employee owned hedge fund manager. The firm launches and manages equity mutual funds and hedge funds for its clients. Paradigm Capital Management, Inc. was founded in 1972 and is based in Albany, New York with an additional office in New York City. Call at (518) 431-3500.
Or visit here: http://www.paradigmcapital.com
The Forex Hedge fund is the best protection that you have against a very volatile industry. It is a collection of huge reserves that can be used to explore those sectors of the market which are known to be risky. If you get it right the profits can be very high. On the other hand getting it wrong is not the end of the world because you have alternative sources of funding.
A template for a responsive Forex strategy
A currency unit such as the rupee would make life very difficult for the people that have to spend money in other jurisdictions. For example students and tourists will find that their incomes do not go far enough when purchasing imports. It is very important that you do not transfer any funds from local accounts into international accounts unless you understand the currency values.
The Forex Hedge fund has to be responsive to the local situation. In cases where the local units are falling in value, you should use up any remaining funds as quickly as possible. A developing country will be able to eventually recover but an underdeveloped country is virtually going nowhere. It is better to spend the money when you get the chance.
A sophisticated approach is sometimes taken when there is a lot of capital that is floating around. For example a pot of money can be kept in a falling currency such as the Rupee on the assumption that at some point it will rise against the dollar so that you make a profit. On the other hand you may also bet on the possibility that the dollar will continue to increase in value.
The responses of the economies to the Forex crisis
Some forward looking countries are taking control over their currencies. For example China has artificially kept their money artificially low in value in order to compete against the USA in export terms. This is not particularly good news for the scalpers because there will be no abrupt movements in the value of that currency. It is far better to concentrate on the USD which is changed by the market.
As an entrepreneur you should always watch out for any signs that a local currency is struggling. In particular you have to pay attention to the implications for the exchange rate with the dollar as the principal currency for the world. This is a luxury that is associated with a Forex Hedge fund manager.
If you are looking for reliable institutional services to help you take charge of your financial success, look no further: Paradigm Capital Management - an employee owned hedge fund manager. The firm also launches and manages equity mutual funds and hedge funds for its clients. Call at (518) 431-3500.
Or visit here: http://www.paradigmcapital.com
The most successful hedge fund investment strategies hinge on having the right manager. Without the right hedge fund manager at the helm, even the best fund strategies can fall apart. Top performers are often well-recognized in the field, but choosing the right manager for your investment should be more than just a simple popularity choice. There are several factors to consider when attempting ensuring that your investment will be managed in a way that gives the best chances for impressive growth, while minimizing the risk of losses. Choosing a hedge fund manager that you know you can trust will give you a solid foundation for branching out into different types of hedge funds underneath the same stellar management.
Even the best hedge fund managers have to start somewhere. Most hedge fund managers have a specialization that has developed as a result of hands-on experience in the world of finance. Understanding how that specialization plays into his or her strategy can help you to understand why certain types of investments opportunities are favored over others. Also, this experience should provide an in-depth understanding of the workings of the market and how to reduce potential losses while still working towards continual positive returns.
While the triumphs of your potential hedge fund manager are likely to be prominently advertised, you also want to know about any past failures with regards to investment strategies. Understanding where things went wrong and gaining insight on better choices to make in the future are essential for successful fund management. Ideally, you want to choose someone who is able to admit mistakes quickly, and make corrections just as quickly - this will minimize your risk for big losses, and it also encourages transparency for investors in the fund.
The financial markets are ever-changing, and you want a hedge fund manager who is flexible enough to change right along with them. Discussing potential worst-case scenarios can also help you to understand how your potential fund manager copes with the need to make quick decisions, and how much planning is involved in these decisions before they are made. When investing in this type of fund, you want to have full confidence that the strategies employed are timely, targeted, and carefully monitored.
If there is anything that you don't understand, the hedge fund manager should be able to explain it to you in clear, succinct terms. Don't be afraid to ask for in-depth explanations, even if you think you understand most of the underlying strategy involved. It is important to be completely comfortable with the choice you make for your investments. Because these types of funds can carry a significant risk, you want to be able to rely on expertise, professionalism, and practical experience. Choosing the right hedge fund manager now means that you have a contact point for additional funds in the future as your returns grow and your investments expand. Take the time to choose someone you trust, right from the start.
If you are looking for reliable institutional services to help you take charge of your financial success, look no further: Paradigm Capital Management offers online trading, investment banking, and a range of services for the most discerning professionals. Paradigm Capital Management provides its services to pension and profit sharing plans, investment companies, pooled investment vehicles, individuals, high net worth individuals, charitable organizations, corporations, and state or municipal government entities.
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