Small Cap Stocks – Informed Predictions

The ocean of the stock market is big enough for everyone interested in it to fish for a living. However, each person has their own attitude and appetite for the kind of fish that they would like to catch. While there are certainly big fish available in the ocean of stock trading, you need to invest heavily in your equipment to get them on board in order to make a roaring profit. And there is no certainty that you will make a profit given the huge investments that you have to shell out. However, small cap stocks may be just the right size fish you are looking for. You might find a lot more fish, and you might not have to invest a fortune in equipment. If you want to make handsome profits in the stock market without having to invest a whole lot of money, small cap stocks are right for you.

 

As you would expect, investing in big companies requires big dollars, while small cap stocks will help you along the path to success with a smaller initial investment. Typically these small cap stocks, also referred to as “penny stocks,” tend to be popular for many investors on account of their trading at $5 or less. The low price per share brings in a lot of affordability amidst the volatility and uncertainty of the market. Small cap stocks are in companies that have limited market capitalization and may have tremendous growth potential – the smaller you are, the larger your possibility to grow.

 

There is a catch when it comes to Small Cap Stocks. You should have the expertise to understand how they will react and respond to developments within the company, the industry, and the economy as a whole. Small cap stocks are more volatile and tend to be more speculative than the rest of the stock market. It takes time, close attention, knowledge, and informed predictions to appreciate the way small cap stocks behave in the medium to long run.

 

Paradigm Capital Management is a trusted small cap company. With a long history of small-cap investing, the company employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.

We have the experts when it comes to penny stock investment and we can definitely assist you with your financial goal, contact us at (518) 431-3500
Or visit us here: http://paradigmcapital.com/

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Understanding and Evaluating Penny Stock Patterns

Penny stock charts contain stock patterns. These stock patterns help investors evaluate the trend in the company’s share prices, and are especially useful in predicting future behavior.

It is imperative to monitor and check, on a daily basis, the prices and volume charts of the penny stocks that you intend to buy and trade. You will be surprised to discover how frequently a stock trading pattern repeats itself. Studying price and volume charts that go back as far as three years ago may show vital patterns.

 

Familiarizing yourself with the way penny stocks have been traded in the past may be beneficial as well, as this will give you a good feel of the way the stock might move in the near future. A guarantee of a pattern repeating itself is not 100% sure, but it does happen, and when it does it may mean instant profit for your investment.

 

By using a penny stocks trading software for screening and analysis of graphs and charts that shows day to day or week by week trading activity, you may be able to recognize any re-occurring stock trading patterns. Seeing a trading pattern from two or three years ago repeating itself at present, is not an unusual occurrence.

 

How to evaluate penny stock chart patterns

 

1. Verify the focus of the penny stocks chart. Some charts firmly track the prices of the stocks while other charts indicate the average movement of a penny stock. If you don’t understand the chart’s topic, you will need to do research to be able to identify what the chart is evaluating.

 

2. Delineate the support and resistance level for the penny stock. The support level is the lowest chart point at which a stock price fell on numerous occasions during a specific time span. The consumer’s demand for the penny stocks will not permit the price to fall down below the support level. On the other hand, the resistance level is the high point on a stock chart where the price surpasses demand.

 

3. Familiarize yourself with the trading range for the penny stock chart pattern. A trading range is a price range at which the value of a penny stock remains inactive for an extensive period of time. Once the stock chart pattern goes beyond the highest point of this range, it may possibly set a new resistance level. Conversely, if it goes lower than the bottom of the price range, it is possible that the penny stock is on its way to establishing a new support level.

 

4. Look out for any trend lines within the penny stocks chart patterns. Trend lines may possibly designate the future prices of the penny stocks. If the trend line is going upward, it may be a sign of future growth, while decline on the other hand might signify the opposite. It is also imperative to establish a comparison trend line as it will help determine if stocks are following the market and would have nothing to do with future price indicators.

 

Paradigm Capital Management is a trusted small cap company. With a long history of small-cap investing, the company employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.

We have the experts when it comes to penny stock investment and we can definitely assist you with your financial goal, contact us at (518) 431-3500