In the stock market, money is made daily by people who know how to play the stock market. These are people just like you and I. The truth is that there are various ways to trade. For those people who do not have 6 figure brokerage accounts, penny stock is the best way. Not only that it is good for beginners, but it is also a great leverage investment. Penny stocks are stocks that do not cost a lot of money because they are stocks from small or medium. Actually these stocks can get you started in the stock market if you really want to know how to play the stock market. Honestly, it would be very difficult for you to find another trading vehicle that offers this kind of leverage as penny stocks do. When it comes to this business, the growth potential could be really huge because it really doesn't take that much to move the price. Some have gone up as much as 500% in a single day. Let's just say, for an example, if a penny stock that cost 50 cent per share goes up 100 percent that would mean that the price will move from 50 cents to a dollar par share. You can really start to see how such small investment can provide big profits For sure, they are unquestionably enticing when you consider how inexpensive they are. But before you start trading on penny stocks, you definitely need to gather some information on them. This is because; you can't just go around and buy them on impulse. You have to make inquiries concerning each one of them and make sure you weigh the advantages and disadvantages of each stock you are interested in. This is essential since you are investing in corporations that are not well established Furthermore, it is never advisable to trade with money that you can not afford to lose. This seems like common sense, but you'd be shocked to know that people are making this mistake daily. If you disregard this rule, then know that you are setting yourself up for great surprises If you really want to know how to play the stock market by investing in the penny stock, there is this new invention that has found its way into the stock market. Thousands of traders are now depending on this tool to make money in the stock market. This tool is called stock market robot. It is a machine that was programmed with incredible technical information about the stock market. It analyzes this information and tells you when to buy or sell. To me, it seems like this technology and penny stocks were made for each other. This is because Penny stocks can either quickly go up in value or can decline so quickly that you lose everything you have invested. To learn more, consult with the experts at Paradigm Capital Management, a penny stock and hedge fund managing firm. Our three decades of experience provides an exceptional level of insight that is reflected in our high-conviction portfolios. To learn more, visit here: http://www.paradigmcapital.com/team/key-personnel
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When is the best time to do penny stock trading? As with any investment in any type of stock, everything is speculative. If everyone could determine the exact time to jump in, then everyone would be a millionaire. However, there are of course a good and bad time to trade. Due diligence is something that many experts recommend to both new and experienced traders. While stocks are generally considered to be a very dangerous investment, the rewards are also huge. You probably know by now that the key is to minimize the risks of investing in pennies. You should be able to search for some signals that indicate it is a good time to purchase a penny stock.
Conventionally, a penny stock is any stock trading for under a dollar per share. But you will hear that it is technically any stock that sells below $5. Getting started with this type of stock trading is easy. Simply work with an online stock screener that categorizes all stocks below $5 or $1. A stock can trade for a very low amount since the stock is issued by businesses that are still small and starting out, hoping to grow. There is a risk here since because in reality, new companies can just as easily go out of business. On the other hand, which is evidently viewed negatively, a penny stock can also be a stock of a business that's been operating for some time but has fallen into a downward spiral financially. So be careful what you pick - these are just some basic precautions, which you will soon learn through experience how to tell when to invest in a company or not. If a stock has gone way down, don't jump in, unless if you really believe that the business will be able to get back on its feet in unlikely times. Perhaps there will be new management. Or maybe there will be a big merger coming up. Still, if a stock price gets under a dollar, it is most likely that it's not coming back up. Thus, comprehensive research, observance and experience will give you a better idea when the best time is to do penny stock trading. If you start out with hot picks, you're on the right track. Starting out with worthless picks will only mean a road to disappointment. When penny stock trading, you'd want to look for those companies with the highest potential. Try to focus on technology, target a niche, and work with acquisitions and mergers with larger companies. Penny stock investing can be a good venture if you know where to invest your money on. Consult with Paradigm Capital Management to find the hottest penny stock list online. Find tips and tricks from the Paradigm Capital Management experts, and start building your penny stock fortune now. For more info, please visit here: http://www.paradigmcapital.com/ If dealing in Penny Stocks is such an unproductive form of investment, why is that so many people are forever in search for a share of the profits? Penny Stocks, as it happens, found their origin in the mining districts of Utah, USA in the late 1940s. Unregulated stocks for mining rights for uranium were sold across the coffee counter in a cafe in Salt Lake City. This was more reminiscent of the wild west days than the post World War II era. Today, penny stocks have come to trade all over the country and enjoy international acceptance. Though not a regular occurrence, they can also trade on US Security Exchanges like NYSE, AMEX and NASDAQ with a minimum of formalities. The Securities Exchange Commission has defined penny stocks as stocks of small companies generally trading under $5.00. In the U.K. this figure is one pound sterling. This may seem a misnomer since it is not unusual to see stocks on NYSE etc being traded for prices lower than those on the penny stock market. Yet, people who are just starting out fail to realize that the penny stock market is one of the "undesirable" places to do business in. Many of them are poorly run companies and falsely claim that every penny stock has a great service or a product attached to it. They have fancy websites, almost inaccessible offices and a UPS mail box for an address. They have no earnings, no cash or balance sheets. And no future prospects. Still, it is little wonder that these 'Fly by Night' ventures rake in million of dollars. Most of the conservative investors are aware of the risks involved and steer clear of penny stocks. But for the vast majority, for whom an additional income is the lifeline to survival, the thought of prudent investing and earning in thousands of dollars is a temptation too strong to resist. After all. where can you buy shares for a few cents and sell them for at least 2-3 times the amount in a matter of hours. Facts prove that for a majority of people, possibly higher than 95%, It is a no-win situation. The simple reason for this is that when it comes to penny stocks it can be quite difficult to, single-handedly, gather information about their background and reliability. Besides, with stocks hovering at a few cents a piece most people are inclined to be casual and, sometimes, frivolous. They prefer to exercise their own judgement rather than seek professional help. This often turns out to be catastrophic. Investors have come to understand that a majority of the penny stock companies may not only fall short of their promises and commitments, but may become extinct altogether. Yet, the 2%-3% companies that survive produce all the millionaires. These companies have outperformed just about every asset including gold, real estate and blue-chip stocks. Investments may be limited from $500 to $2000, and penny stocks, besides being readily available, move very quickly when handled in a correct manner. And it is no coincidence that giants like IBM, Apple and others have tread on the same humble road to success. Most experts will suggest that you do not place all of your money in a high risk zone without a proper assessment of your proposed investment. Your success on the long run will depend on the quality of your broker. Pick a traditional broker rather than a discount broker. The traditional ones, though expensive, provide you with Investment ideas, preparation of reports.and your portfolio's performance. Whether it is to buy or sell, they will handle all the transactions. But remember, that on the long run, individual investors do not lean on professional expertise for longer periods than is necessary. So it is up to you to hone your skills and develop the capability to make sound financial decisions. To learn more, consult with the experts at Paradigm Capital Management, a penny stock and hedge fund managing firm. Our three decades of experience provides an exceptional level of insight that is reflected in our high-conviction portfolios. To learn more, visit here: http://www.paradigmcapital.com/team/key-personnel/ If you are interested to start your lucrative business in penny stock trading, with the objective of building a big fortune in a very short duration, then nothing more could be better than to scout for a good penny stock broker of some repute who can offer you genuine services. In fact no matter how experienced you may be in dealing with stocks you still have to avail the services of a good stock broker having an online presence across the Internet. Not all stock brokers feel very comfortable when dealing with micro stocks because of their highly volatility and exceedingly unpredictable nature. Hence, its important that you prepare a list of those brokers who actually deal with micro stocks and have been successfully catering to a large base of penny stock investors. The Pros and Cons of a Full Time Penny Stock Broker However a good penny stock broker does not come cheap because of their high specialty and scarcity in the market who actually deals with micro stocks. Their commissions could be quite high for you to handle that might eat substantially well into most of your profits earned. Since your investment would be too little initially you should consider the following facts before choosing a broker for penny stock trading. They are very much like lawyers. They will charge you for any services they offer, be it in the form of advice, both formal and informal, sending regular newsletters where they keep all the subscribers posted with up to date information vital for trading. And of course on every buy and sell prices, they take away a hefty commission, in addition to a flat fee that they charge for their invaluable services. In fact it hardly matters to them whether you earn thousands or lose hundred from trading. The brokers are anyhow would be earning from their brokerage whenever you trade through them. The commission is calculated on every trade that you undertake. Remember don't be carried away with discounts or low fees being offered, since there are lots that you need to know about which are mentioned in fine print. So be very careful when choosing the right broker for all your services. Charles Schwab and Fidelity are good online brokers offering great services to a large investor clientèle base. Since the odds are most often much against you when dealing in OTC stocks hence, you do require the services of a full time broker for the same. Moreover an online broker can offer wonderful professional advice after you confide in him or her about your actual financial goals and trading objectives. They also help you to understand with the technical and fundamental analysis of various micro stocks, their chart patterns and future potential etc. They also keep you abreast of their latest research findings and help you in preparing a list of hot penny stocks under watch. To learn more, consult with the experts at Paradigm Capital Management, a penny stock and hedge fund managing firm. Our three decades of experience provides an exceptional level of insight that is reflected in our high-conviction portfolios. To learn more, visit here: http://www.paradigmcapital.com Of all of the questions that I receive, there is one question that seems to be more plentiful than other. The question is this: "What penny stocks should I invest in?" There must be a lot of penny stock investment experts running around because somebody needs to tell all of these young, inexperienced investors the truth. First, you aren't going to make any money until you change your way of thinking before you start investing. We have learned in our everyday life to get products as cheaply as possible. If you're like me, you love to play the haggling game with cars. I shop all dealerships in the area and play each together. Lower price means better deal. While that does transfer to the stock market, penny stock investment isn't successful if you buy the lowest price stock. It is only successful if you buy a HIGH QUALITY stock at a low price. Get out of the mindset that low price means better value. 10 shares of Apple priced at $175 per share is a much better value than 500 shares of Sirius XM radio. We don't look at price until we look at the quality of the company. Next, penny stock investment is dangerous because of the risk/reward. If you buy 100 shares of Chevron, you can be relatively sure that the worst that will happen is a temporary dip in the price of the stock. As long as you're patient, you will make money or at least not have a very large loss. Penny stocks are different. If a penny stock drops in value, it may never come back. The company may go out of business and your money may be lost. So look at the risk/reward. Chevron is low risk and at least medium reward. Penny stocks are high risk and low reward since penny stocks tend to stay penny stocks. Finally, it's difficult to evaluate penny stocks. Often, they don't have positive cash flow, a lot of debt, and very little longevity. Is the debt they incurred to start up going to result in a healthy company or will the debt crippling them? Will they ever have a profitable product or service or will they, one day, suddenly close their doors taking your money with them? The pros often take chances with these questions. Are you willing to lose your entire investment? Is penny stock investment worth your time? It may be but before you become a penny stock investment expert, you should be an expert stock picker in high quality names. Don't look at penny stocks until you have a healthy portfolio of blue chip stocks. To find more info, visit here: https://paradigmcapitalmanagement.wordpress.com/ The only thing harder than picking a penny stock to buy is picking when to buy penny stocks. It can be very hard to know when to buy penny stocks, but with a couple good methods, you can pick when to buy penny stocks much easier. The following are methods I use all the time to pick when to buy penny stocks. The methods I am about to show you are very simple and are overlooked by many penny stock investors out there. The first method I use to help me decide when to buy penny stocks is trends. Trends are patterns in a company's stock price over a period of time. A good trend would be one that jumps up from time to time, and then slowly goes back down over time. This information allows you to pick the perfect time to buy into a stock at its lowest price. This is a big help when trying to decide when to buy penny stocks for the best profit. It is so very simple but overlooked by about 90% of penny stock investors. The second thing to look out for when applying this method is trade volume. If as company has few daily trades, its trends will be unlikely to be constant and that makes for a high risk investment. When picking when to buy penny stocks, you want to find a company that has a large number of daily trades. A high number of daily trades make a very predictable trend that you can use to pick when to buy penny stocks. Once you have found trends in many companies, you can start investing in them at low points, sell at the peak, and repeat. You will have many companies (the more the better) so you will always have a good investment waiting for you. This is how you can gain financial freedom just by knowing when to buy penny stocks. To learn more, consult with the experts at Paradigm Capital Management, Inc. a hedge fund managing firm. The firm was founded in 1972 and is based in Albany, New York with an additional office in New York City. To learn more, visit here: http://www.paradigmcapital.com/ Perhaps you've heard or seen the hype about penny stocks. The claims for these babies are incredible. All it takes is a quick internet search and you'll find all sorts of claims like, make 3000% overnight, and 12000% increase in hours. It all seems very incredible, and if it were really true it would be the best thing to hit the investment world since sliced bread.
While it is possible to make very good money day trading penny stocks the reality is most people lose money. Micro cap stocks are an incredibly volatile, tricky vehicle to make money at. Having said that, it is possible with discipline, to develop your own plan for winning at day trading penny stocks. 1) Ignore the hype Never buy a stock just because you received and a email touting it as the next big mover. This is an industry full of hucksters and shysters. This type of investment is particularly susceptible to artificial manipulation of stock prices either through aggressive advertising or actual shorting of the stock. Ignore spam emails and hot stock tips. Every investment you make in this realm should be thoroughly researched by you. 2) Get some help with your picks. When you first start out in this venture it helps tremendously to employ a skilled professional to help you with your picks. We all have something that we are an expert in and for most of us it isn't picking stocks. So unless you are a stock picking expert, you should get one on your team. The investment world has some very smart people who love to analyze stocks, micro cap or otherwise. I know that a lot of us are do it yourself people, but why would you not use the expertise of people who make their living at this game. 3) Develop a set of rules. I took a trading course a few years ago and one of the first lessons we covered was setting up a clear set of rules to follow. Your set of rules will be unique to your particular personality. For example you should have a hard rule that tells you when you will sell if the trade doesn't go your way. You should have a hard rule that tell you at what point you begin to sell some or all of your position if you are making money. Mastering emotions is one of the single most important skills a trader can develop. 4) Practice Practice Practice! I know as much as anyone the desire to get in there and make money tomorrow. After all 3000% returns are just around the corner (NOT). The truth is, you are a fool if you don't practice taking the picks you get from your adviser and running them through the set of rules you established. Get a demo account at an online broker and practice applying your rules. You should practice for weeks until you feel completely confident that your system makes money. Then practice some more. Patience is a virtue and everyone needs to develop the emotional mastery and set of rules that allow you to consistently make money. The emotions that occur when you have actual skin in the game are completely different than when its fake money in a practice account. 5) Have Fun Last but certainly not least, have fun. Wining at day trading penny stocks is a skill to develop just like any other. You might stink at playing tennis but the process of learning is a lot of fun. Trading penny stocks is no different. Learning how to make money doing it should be fun. If it isn't fun you should move on to something that is. Losing money is no fun so refer back to rule number 4. Bonus Rule - Never invest more money in this type of investment than you can afford to lose. You are not out to be a gambler here. Small steady consistent wins will make you rich. Betting the farm because you need money tomorrow is simply a recipe for heartache. Become a better investor with info on penny stocks funds, tips on stock market basics and help with penny stocks listing at Paradigm Capital Management. Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact. To learn more about how Paradigm Capital’s capabilities to align with your long-term goals, please contact us at (518) 431-3500 Or visit here: http://www.paradigmcapital.com/ Trading on the stock market can be confusing enough but when you are trading in high risk investments such as penny stocks making using of penny stock brokers can definitely give you an advantage. Penny stock brokers may or may not deal in other types of stocks but they are going to be familiar with exactly how to tell what a good investment is. After all these are people who are dealing with high risk investing and they are going to make their money many times on the success of their clients. Knowing how the market works and how to spot or even analyze the market in order to determine good places to invest is ultimately what makes or breaks them. Another reason to use penny stock brokers is the analysis that they can provide. One of the most important things when looking at penny stocks and investing in penny stocks is knowing how the market numbers for these stocks are laid out. For example, you are going to want to know, the pattern of both the increase and decrease in price over preferably a five to 10 year period before making an investment in this type of stock. Penny stock brokers are going to be better able to provide you with the market data or present the analysis of the data. This makes it significantly easier on you. While these pattern analyses are usually done through the use of computer software applications. Many of these software applications are specialized and as results can be expensive this is one of the reasons why it is a good idea to use a stock broker when starting at all in any investment market. They can provide you with the information you need without incurring additional expense on your part. Often time stock brokers will also have access to already generated market reports and newsletters. Many of these can be hundred of dollars a year so having a penny stock broker that already has access to these can be well worth the time and money it spend finding them. The stock market is not something to be taken lightly and it is important to remember that the best way to protect to yourself and your investment is to obtain a good knowledge base and be able to serve your by being able to determine the best stocks for your purposes. This means that while having a stock broker you should not rely on them alone to provide you with all the information you need. They should be considered a resource just like any other resource. They are there to work for you and handle your portfolio according to your specification. This is why it is important for you to be educated in regards to the stock market especially with a high risk investment market such as penny stocks. Having a stock broker at any point in your trading career is something that can be a great asset and obtaining one should a carefully thought out and researched decision. If you want to learn more then you can consult with the experts at Paradigm Capital Management. Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact. The firm's three decades of experience provide an exceptional level of insight that is reflected in their high-conviction portfolios. Call us 212.364.1830 If you have survived the last few years' worth of investing and still have your nest egg intact, then you are one of the lucky ones and are probably looking for good penny stocks to invest. A lot of people who put their money in the hands of their financial advisor or just left it sitting in a 401K ended up with little more than an empty investment account.
Right now is a difficult time indeed for people who have money to invest. It seems as if the rules have all changed as to how your money should be diversified and no one can give you a straight answer as to what sectors are safe, how much cash you should hold on to, how much you should have in gold or silver, and how much in foreign funds. But one thing that has always been true is that finding penny stocks to invest in can be dangerous but very lucrative. If you stop and think about it, many of the stocks that are bellwethers today actually started out as penny shares to invest in. Microsoft, Nike, and many other names that you know and use every day were penny shares at one time. You should not think of a micro stock as a stock that is less than $1.00 per share. In reality, any stock that regularly trades at less than $5.00 per share is considered a penny stock. You may hear them called "small cap" or "emerging growth" stocks, but they are still penny stocks. Many people have made a lot of money in these small stocks, but just as many (or more) have lost money and that is because there are a lot of unscrupulous people pointing out penny stocks to invest in. They buy up a stock, tout it, have others drive up the price, and then sell their shares at a profit, leaving everyone else in the dust. But, the good news is that you can make plenty of money if you know how to find realistic penny stocks to invest in that are real companies with a real possibility of getting bigger. These stocks can enable you to double or triple your money in virtually no time at all, and if you have the foresight to hold on to them even longer, you could see enormous gains. Of course, knowing who to trust in the stocks industry is vital, so that you do not get ripped off by people trying to make a profit off of you. For more details you can consult with the experts at Paradigm Capital Management. 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. Call us 212.364.1830 Knowing the best penny stock picks is the key to making it big in your first venture as a stock trader. Penny stocks are those that have great potential to earn a huge return of investment with such little input. This makes it the all-time favorite of stock traders, including those who are new to the stock trading game. Not surprisingly, even veteran stock traders find time to invest in penny stocks for possible returns. But not all penny stocks can result in huge returns of investment, if any at all. In fact, a lot of penny stocks in the market are placed there as merely fraudulent stocks; deceiving the gullible trader into believing that he made a good deal when, in fact, he is buying a bunch of worthless stocks.
So, how does one exactly know what penny stocks to pick, considering the thousands of penny stocks to choose from? Our experts at Paradigm Capital Management have a short and brief advice for you. Contrary to public opinion, learning how to choose penny stocks is not exactly a hard thing. In fact, it is quite simple that novices easily get the hang of it. The first thing that you should probably consult is a penny stock website. You will find hundreds of resources for properly choosing penny stocks just by searching the Internet. The problem is that most of these web resources require membership, with some requiring a certain amount as the membership fee. Fortunately, the fees that are required are usually minimal and that the value that you can get from the information contained there will surely surpass whatever you have paid for membership. But you should still be careful when searching for penny stock advice. Just because you find all sorts of information on the Internet does not necessarily mean that all of it is true. There are bogus sites out there that are created specifically to draw attention to certain penny stocks that are being offered which are, in truth and in fact, worthless. For this reason, you will also have to consult a seasoned veteran in the stock market. He should know the pros and cons of penny stock trading and should be able to give sound advice out of experience and practical knowledge. It is not really that hard to invest in penny stocks. It is just like knowing which apples to pick from the tree. Knowing the best penny stock picks only requires common sense and open-mindedness. Also read: Finding Small Cap Stocks in Specific Sectors |
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