By Michael Pergrem
Everyone wants to know which penny stocks are on the rise. Well, you can do two things. You can trust somebody's advice on which stock will be a winner, or you can do one thing that 90% of investors skip and find out for yourself.
When you trust other people, they can be wrong. This means you are throwing money to chance when investing bases on someone else's word.
We want to reduce the risk as much as possible.
Reduce Risk with one Tool That Others Forget
The key to know yourself if a stock has a good chance of making you money or causing you to go broke is research. Research scare many people because they think it is impossible to do unless you have tons of knowledge and years of experience.
That cannot be father from the truth! Research is not very hard and anybody can do it!
Here are the Three Things You Must Research
- Who is the CEO of the company? Have they worked for any other companies? If so, how good did they do?
- What are the long term and short term goals of the company?
- How is the overall industry that the company is involved in doing? Is it on an upward turn.
If all of these factors are favorable, then you know for a fact that the company you are looking at has a great chance to go up in price. So before you simply trust your money in the word of another person, take a little time to make sure your stock will be a winner yourself!
If you find research to be a little confusing, you can find some awesome tools and resources here: Stock Research Tools
What a Difference it Can Make
Click Here For Penny Stock Prophet!
Just taking a little time can make a huge difference in your investing success! So start researching and I know you will be very please with your portfolio in the coming months! http://www.pennystocksmadeeasy.com
Article Source: http://EzineArticles.com
Showing posts with label cheap penny stocks. Show all posts
Showing posts with label cheap penny stocks. Show all posts
Friday, June 11, 2010
Monday, March 29, 2010
Penny Stocks Buying Selling: Day Trading Penny Stocks Is Risky And Profitable
The world of penny stock day trading is often compared to
gambling.
Why?
Because when you win, you win big. If you lose, you can lose a
whole bunch of money. The speculative nature of penny stocks or
microcap trading is well known. Companies that offer cheap stock
are not the same companies you’ll find in the blue chip market.
On the contrary, they are often very risky investments.
The reason why their stock is so cheap is because they are just
starting out in business or they have mismanaged their business
and need a quick bail out. Selling inexpensive stock is a way to
raise some fast cash for their enterprise.
Determining which small cap stocks are a good buy is very
difficult and not for amateur investors. The truth is, most
microcap stocks are pure junk. It’s really common for a novice
investor to lose money after being lured into buying a cheap
stock that is supposed to make them rich.
Very often, these sure deals are nothing but scams that are
designed to make the insider stock picking services big money.
They count on your lack of experience and knowledge to make them
rich.
Only about 5% of the small cap market is truly worth investing
in – the rest should be tossed aside like yesterday’s garbage.
The good news is that with the right information and guidance,
you can make really great profits in this market. Most smart
investors will sign up for a newsletter that specializes in
penny stock picks. The reputable newsletters will only analyze
the top 5% of companies that they feel are worth putting money
on. They will usually recommend three to five good picks. You
then decide whether you want to go with their picks or not.
Another reason why it’s a good idea to go with a newsletter is
that you can greatly minimize your risk. Wise investing is all
about picking more winners than losers and not putting all your
eggs into one basket.
Since you probably have a full-time job, you don’t have time to
spend pouring over endless data about thousands of companies out
there offering cheap stock. You definitely need experts to do
this for you, and you also need the tools to make your
investment decisions easier.
Many people get into day trading penny stocks for the thrill of
making big money in a short amount of time. While this is
totally possible, you must also temper your enthusiasm a bit in
order to make good decisions based on factual information.
Here’s an example of a typical microcap stock trade:
Let’s say you find a start up company that’s in the software
business. They create medical software for hospitals. This
sounds like a pretty good business to you so you take a look at
their stock offering.
You see that they are selling shares at 50 cents a piece. So,
you decide to buy 500 shares for $250. You sit on the stock for
a while then you see that it starts to go up. It peaks at $3 per
share and you decide to sell. You’ve just made a nice $1,250
profit from that one stock. That’s a 600% rate of return!
This kind of profit is what excites most people about small cap
stocks, however, if the opposite should happen and that stock
goes down by even inches, you’ll lose all of your initial
investment money. This is why you should never invest money that
you need to pay your bills and buy food.
Only invest extra money that you can spare. It’s similar to if
you were going to Las Vegas for a vacation and you budgeted a
certain amount of money to spend on gambling at the casinos. If
you lose it, no sweat - it’s fun money anyways.
Day trading penny stocks can be looked at in the same way. It’s
fun and profitable when you win, but not so much when you lose.
Unfortunately, many investors gamble with money they shouldn’t
be risking and lose it all with one or two bad trades. I know
this isn’t going to happen to you because you’re going to learn
how to invest the smart way, and in this topsy turvy market,
that’s the only way you’ll end up being a winner.
About the Author: Unbelievable! A robot that trades penny
stocks better than many humans. Find out how you can use Marl
the stock trading robot to earn a steady stream of profits.
http://pennystocktradingmadeeasy.blogspot.com
Source: http://www.isnare.com
Permanent Link: http://www.isnare.com/?aid=225733&ca=Finances
gambling.
Why?
Because when you win, you win big. If you lose, you can lose a
whole bunch of money. The speculative nature of penny stocks or
microcap trading is well known. Companies that offer cheap stock
are not the same companies you’ll find in the blue chip market.
On the contrary, they are often very risky investments.
The reason why their stock is so cheap is because they are just
starting out in business or they have mismanaged their business
and need a quick bail out. Selling inexpensive stock is a way to
raise some fast cash for their enterprise.
Determining which small cap stocks are a good buy is very
difficult and not for amateur investors. The truth is, most
microcap stocks are pure junk. It’s really common for a novice
investor to lose money after being lured into buying a cheap
stock that is supposed to make them rich.
Very often, these sure deals are nothing but scams that are
designed to make the insider stock picking services big money.
They count on your lack of experience and knowledge to make them
rich.
Only about 5% of the small cap market is truly worth investing
in – the rest should be tossed aside like yesterday’s garbage.
The good news is that with the right information and guidance,
you can make really great profits in this market. Most smart
investors will sign up for a newsletter that specializes in
penny stock picks. The reputable newsletters will only analyze
the top 5% of companies that they feel are worth putting money
on. They will usually recommend three to five good picks. You
then decide whether you want to go with their picks or not.
Another reason why it’s a good idea to go with a newsletter is
that you can greatly minimize your risk. Wise investing is all
about picking more winners than losers and not putting all your
eggs into one basket.
Since you probably have a full-time job, you don’t have time to
spend pouring over endless data about thousands of companies out
there offering cheap stock. You definitely need experts to do
this for you, and you also need the tools to make your
investment decisions easier.
Many people get into day trading penny stocks for the thrill of
making big money in a short amount of time. While this is
totally possible, you must also temper your enthusiasm a bit in
order to make good decisions based on factual information.
Here’s an example of a typical microcap stock trade:
Let’s say you find a start up company that’s in the software
business. They create medical software for hospitals. This
sounds like a pretty good business to you so you take a look at
their stock offering.
You see that they are selling shares at 50 cents a piece. So,
you decide to buy 500 shares for $250. You sit on the stock for
a while then you see that it starts to go up. It peaks at $3 per
share and you decide to sell. You’ve just made a nice $1,250
profit from that one stock. That’s a 600% rate of return!
This kind of profit is what excites most people about small cap
stocks, however, if the opposite should happen and that stock
goes down by even inches, you’ll lose all of your initial
investment money. This is why you should never invest money that
you need to pay your bills and buy food.
Only invest extra money that you can spare. It’s similar to if
you were going to Las Vegas for a vacation and you budgeted a
certain amount of money to spend on gambling at the casinos. If
you lose it, no sweat - it’s fun money anyways.
Day trading penny stocks can be looked at in the same way. It’s
fun and profitable when you win, but not so much when you lose.
Unfortunately, many investors gamble with money they shouldn’t
be risking and lose it all with one or two bad trades. I know
this isn’t going to happen to you because you’re going to learn
how to invest the smart way, and in this topsy turvy market,
that’s the only way you’ll end up being a winner.
About the Author: Unbelievable! A robot that trades penny
stocks better than many humans. Find out how you can use Marl
the stock trading robot to earn a steady stream of profits.
http://pennystocktradingmadeeasy.blogspot.com
Source: http://www.isnare.com
Permanent Link: http://www.isnare.com/?aid=225733&ca=Finances
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