Authentic Tip About Day Trading Penny Stocks

Trading in the stock market itself is risky and dealing with volatile stocks, also termed as penny stocks, is further risky. The fact especially holds true if you are a novice with no or very little knowledge of the field. There are people who have been investing in the stock market for a reasonable period of time and still find it difficult to assess the trends. Though there are tips and tricks available, but it is no guarantee that these tips will work properly. There have been cases where people invested in penny stocks and reaped huge returns while many blue chip stocks yielded nothing. But you cannot just afford to solely rely on luck. A proactive approach and study of the market is extremely necessary if you want to make some money through penny stocks.

Day trading can be a good option as it does not require huge investments. Also it does not demand huge commission and trading margins to the brokers. As we know that penny stocks are low value items and the only game involved is that of volume. In such a scenario, if you start paying hefty commissions to brokers, then there will be very less margin left for earning. Therefore day trading is the best option. There are professionals operating in the market who possess vast experience in trading penny stocks and you can easily get help from them. You are not required to pay huge sums of money to them. They provide consulting services at very nominal rates and you can avail these services to make good profits.

It is a fact that proper research and study is required before you step into the world of these stocks. Penny stocks are volatile in nature and that is the secret of their success. The more volatile a stock is, the greater are the chances of making money through it. Believe it or not, but it is true that millions of people have made a fortune by trading in stocks. There are cases where people multiplied their money multiple times and still there was potential to go higher.

It may take some time to have a grip over these stocks, but once you get it there is nobody who can beat you. Identifying stocks with good potentials and then investing money with a perfect entry and exit time will yield a good amount of returns to you.

To learn more, consult with the experts at Paradigm Capital Management, a penny stock and 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.

Read also: Don’t Be One of Those Penny Stock Investment Experts

Advertisements

Where to Go For Penny Stock Recommendations?

Despite the downturn in the markets over the past few years, more and more people are getting into trading small stocks and taking hold of their own future. It is a great idea for every investor to fully understand what they are trading and why and how they are properly diversified. For this reason, many people are looking for penny stock recommendations because they are interested in diversifying even further. By adding micro stocks to your portfolio, you are giving yourself the real opportunity to make some incredible growth over a short period of time.

 

When you go looking for penny stock tips, you absolutely have to be careful where you get your information from. There are many individuals and small companies on the internet who are using the public interest in these small stocks to give faulty penny stock recommendations, recommendations that only benefit them. Sometimes these are hard to identify, so make sure you follow through with due diligence to avoid getting burned.

 

Penny shares, in general, do not trade in the pennies. They trade for less than $5.00 per share, and have the ability to move dramatically. They rarely move with the market. So, if the DOW goes up one percent, do not expect your penny share to go up one percent, too. Because there is so little volume and open interest in small cap stocks, they will not move because of the market or market sentiment.

 

Penny stocks recommendations are necessary in order for you to identify which stocks are about to move or “pop” and why. There has to be a reason. If someone tells you about a stock and cannot give you a legitimate reason as to why it is about to explode, then stay away. Good penny stock recommendations will come to you with the background on the company, what it produces, why it is important, and the real reason behind the changing share value. Perhaps the company is about to be bought out, or maybe they are about to have a drug passed by the FDA. There are many reasons why a penny share will move quickly, but you need to know what they are.

 

With all investing, you never want to have too much of your cash in one place, so do not get too greedy with penny stocks, but they can make you an awful lot of money quickly if you do it the right way.

 

To learn more, consult with the experts at Paradigm Capital Management, Inc. a penny stock and 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.

Also read: Does the Best Penny Stock List Include Oil Growth Stocks?

Why Don’t the Financial TV Shows Promote Penny Stocks?

Why don’t these financial shows promote penny stocks if they outperform the blue chips by such a long shot?

The answer is very simple:

These shows depend on ADVERTISING for their source of revenue. The big financial institutions that heavily advertise on these shows do not promote penny stocks. In fact, they do not trade them because the price would suddenly skyrocket if they attempted to put in an order the size they normally submit. The very size of their order would make the price go way up before they could even buy them.

The biggest advertisers dictate the content of these shows – and by and large these are big financial institutions that depend on investors buying into the conventional wisdom of Wall Street to their profits. The “experts” they invite to pontificate their views on their various shows are mostly from these big financial institutions and/or they are intrinsically part of that Wall Street culture. Penny stocks just don’t fit into this world – and in fact, if too many investors started trading penny stocks over the traditional wisdom, these big financial institutions would suffer (doubtful this will happen however).

This is very good news for you. You can take advantage of the fact that penny stocks are NOT being talked about ion these financial shows. You can get in on penny stocks that are poised to really take off in the short term without everyone and their brother knowing about it. In other words, you as a smaller investor can get in on a very lucrative deal at just the right timing to make a lot of money. If everyone knew about these good deals, you’d have far less chance to get in at or near the “bottom” before the price skyrockets. Think about what happens with many IPO’s. There are so many people who know about what’s happening, it can be near impossible to get in before the price goes way up. Smaller investors almost never get in on these IPO offerings.

With penny stocks, you can fly under the radar and get in on the best deals before everyone finds out about them. Now, you do have to be very careful because frankly most penny stocks are NOT worth your investment dollars and are far too risky. However, there are a few true gems out there and if you know what these are, you can literally make a small fortune – and if you have an ongoing source of information about which penny stocks are legitimate and about to escalate in price, you can parlay that small fortune into a massive fortune. It literally comes down to the right information at the right time.

You can buy penny stock picks from professionals like Paradigm Capital Management who have a really good record of consistently picking winners – BIG winners. To learn more about how Paradigm Capital Management’s capabilities align with your long-term goals, please contact us at (518) 431-3500

Also read: Reasons to Buy Top Penny Stocks

How to Seize and Deal with Penny Stock Picks?

Stock market is very lucrative business to deal with but knowledge of its crucial trading and grabbing techniques should be there. It’s very unpredictable market to handle so you have to keep your eyes and mind open throughout the time when involved in penny stock picks purchasing and selling. But, make sure you have thorough knowledge of this subject area otherwise things can be worsen easily. Plus, entire share market has been categorized into numerous sections so that people can perform investing as per their comfort and financial convenience.

 

Those companies have share price below $5 and market cap less than $200, fall into Penny stocks. Sometimes they are also referred as the slot machine of the share market as involvement of slightly higher risks. However, it can prove to be a great option for the professional and advanced investors. For effective and enhanced results follow these steps:

 

Always invest within your financial range. Always remember, before investing in stock market you have to decide your income range so that everything should be managed accordingly. Plus, keep your savings asides for the emergency time period.

 

Understand the subject and market intensely as it is measured a risky investment area. Penny stocks considered the most unstable and highly maneuvered form of investment of stock market. Generally, companies don’t follow a trust able track of their financial recital. Besides, the stocks are frequently controlled by swindle artists.

 

Direct investment with buy penny stocks prove to be dangerous especially if you are doing it first time. Thus, it’s always advisable to initiate with mid and large cap stock at least for one or two years. This way, you can understand the concept of selling and purchasing of shares, reading balance sheet, cash flow statement, income statement and so on.

 

To make the penny stock investment lucrative and less risky you have to learn the various beneficial aspects of penny stocks. Try to comprehend the technicalities behind money flow, capitalization of share market and structure of stock market.

 

Learn about the stocks companies and pick which one has to choose or reject. Try to avoid companies with a grave liability load. Spend your money with companies that are consistently growing and have positive image in the market.

 

Trading is not a leisure pursuit; it’s a serious business matter. So, invest money only when you are serious regarding this and dedicate extra time to this field.

 

These days, various great invest management software’s are available through which money management and stock investment become much simpler and secure.

 

Make your education background strong before initiate penny stock picks and stock investments. Warren Buffett has advised that every share investors should make their concept clear related to accountancy and economics so that understand the market more easily.

 

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/

Taking Penny Stock Risks

Penny stocks often have market caps lower than $500 million. This makes it highly speculative for those who trade low volumes ‘over the counter’. Some believe that penny stocks are difficult to sell once purchased because of the difficulty in locating quotes on particular penny stocks. Investors in these stocks are expected to understand that the loss of their entire investment is a viable risk.

 

Despite the risks involved, penny stocks are attractive to new investors because of the low initial price and the possibility of quick payouts of up to 100 percent in some circumstances. Just as there is the potential of high profits, that potential comes with the risk of substantial losses.

 

Penny stocks are considered high-risk investments. As a result investors should be aware that these stocks have a limited amount of liquidity and fraud in addition to a lack of financial reporting.

 

Penny stocks have fewer shareholders. This makes them less liquid than stocks of larger companies. It also means that it will buy and sell less shares. The fact that less shares are traded generally results in unpredictable stock prices. This can either make the prices rise sharply or suddenly decline. The lack of liquidity within this market leaves it wide open to exploitation by market makers, management, and other parties.

 

These stocks can also be difficult to sell quickly as some days there simply are no buyers.

 

Another reason for this lack of liquidity is the minimal listing requirements for smaller market listings as compared to NASDAQ or NYSE. Companies that have fallen below requirements for the larger exchanges have the opportunity to get listed on the OTCBB or Pink Sheets.

 

If you are comparing Pink Sheets to the major exchanges you might want to take note of the fact that Pink Sheets have very few regulatory requirements for those being listed. In other words, there is little protection in place for shareholders by way of accounting standards, notifications of ownership of shares, etc.

 

These things combined make penny stocks very attractive tools for fraud. This does not at all mean that all stocks listed on the OTCBB are untrustworthy, it simply means that you should keep your eyes open when making deals on this market

 

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

Also read: A Lazy Man’s Way Can Be the Best Way To Trade Penny Stocks

Essence of The Very Hot Penny Stocks

With the world market still stagnant over a precarious landing, investors around the globe will be certainly feeling the heat, especially with volume trades. Luckily, stock markets have stuck with us in offering the chance to get on with volume trade without putting too much on the line. Yes, buying the hot penny stocks involves risk, but that’s pretty much the same with other stocks. However, just in case you are looking for short term profit, the penny shares are your ideal way out. Besides, stocks are traded in huge volumes, which make them incredibly cheap. Therefore, as investors, you could expect big fluctuation numbers over minimalist stock movements.

 

Ideally, the quintessential hot penny stocks aren’t that challenging to discover. But the quandary lies within the selection process. A stock graph will tell you half the story. Yes, you do have daily market movements, volume trade equation, rise and fall graph and expert opinions to take into consideration, but that’s just 50% of the analysis. The rest you will need to dig up with stock specific market news.

 

Deciding upon the best penny stocks in business certainly requires investors to keep tabs over stock market related news. Companies that usually announce expansion plans look forward to sell stocks at cheap rates. Now, a company’s stocks might not be faring well within the stock market, but when the company decides to sell its stocks at incredibly cheap rates, it typically generates volume trades. Customarily, volume trade greatly heightens the chance of profitability.

 

Besides, hot penny stocks can also be judged via subtle trade movements based upon typical market scenarios. The top stock analysts tend to get their predictions banged on target, simply by looking at specific company news or future plans and then comparing them with stock movements. While the idea looks simple, but its takes years of practice to actually perfect them. Now, it’s not possible to learn such expert stock gazing trades overnight, but it’s certainly possible to realize the best penny stocks in business by simply subscribing for such expert trading tips over professional stock tips based websites.

 

The great aspect about stock investment is that there are just so many traders associated, which makes it easier for stock study as everyone keeps discussing tips. However, if you do look forward to discover the hot penny stock by your own, then the best place to head to will be over specific websites that aid in stock surveys and also provide subtle stock movement data.

 

If you want to learn more then you can consult with the experts at Paradigm Capital Management. 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 or visit us here: http://paradigmcapital.com/