Developing Your Own List of Penny Stocks to Watch

Looking for hot penny stocks to watch? Stop looking and start creating. Anytime you rely on someone else to provide that hot list of stocks, you’re making a big mistake. These particular stock trading waters are shark-infested and frothing to the brim with fraud. There are three basic steps to creating your own list of penny stocks to watch.

Broker Your Way to Penny Stocks to Watch

First you need a full service broker. Some people may sigh when they read this step. Stop playing games here. This is real money with real risk. If you’re serious about learning how to make money with stock trading, then the very first step you need to take on your way to creating your own list of stocks to watch is to find yourself an established and reputable full service broker. You can go with discount brokers and later when you’ve learned the trade and you’re ready to take care of business on your own.

Technical Analysis of Stock Picks

Next you need to learn the basics of technical analysis. In stock trading terms, technical analysis refers to viewing the chart data and identifying patterns known to be associated with specific future behavior of a stock. You’ll find terms like “head and shoulders” and “double tap” used to refer to specific patterns.

Even if you’re working with a broker who is helping you learn the ropes, you need to study these different patterns and learn to accurately identify and diagnose them with real stocks in the market. Quickly spotting common patterns and diagnosing them is vital in developing your own list of hot penny stocks to watch.

Develop Your Due Diligence

The last key to creating a successful list of hot stocks to watch is to understand and appreciate how to conduct your own due diligence with a stock company. This means you need to learn how to research the financial and legal background of obscure little companies. It isn’t as hard as it sounds; but you need to take the time to learn where to go and what to do to obtain and verify a company’s financial data. Because micro cap stocks often don’t need to file with SEC, this is doubly important for micro cap stock transactions.

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/

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How to Spot a Micro-Cap Scam?

Micro-cap scams are plentiful. You’ve probably seen them before, flooding your inbox with fake newsletters promising a return of 300% or some other fantastic number that sets the hopeful investor’s heart to racing. It can be difficult to resist the temptation of succumbing to micro-cap scams. With the promise of such wild returns, it’s easy to see why so many people fall victim to such fraud. Some scams are easy to spot, others are not. Here are a couple micro-cap scams our experts at Paradigm Capital Management have discussed, you should be wary of and ways you can avoid becoming a victim.

Beware Pump and Dump Schemes

A pump and dump scheme involves hyping up a particular stock by using telemarketers, online bulletin boards, and chat rooms to spread the word that they know something about a particular stock that the market doesn’t. It’s their goal to incite a buying frenzy which in turn “pumps” up the value of the stock. Once the stock has been pumped sufficiently, paid promoters and insiders will “dump” their shares, causing the stock to lose much of its value and costing innocent investors much of their investment. Never listen to the hype. Always do your own research before making an investment. If you receive a “hot tip” from a less than reliable source, always be wary.

Offshore Scams

Under the guidelines of “Regulation S”, companies that sell their stock to overseas investors don’t have to register their shares with the SEC. This guideline has opened the door for a flood of scamming opportunities. In an offshore scam, unregistered Reg S micro-cap shares are discounted and then sold to a scammer who in turn, posing as a foreign investor, inflates the price and sells them to a U.S. investor. As you can imagine, the scammer walks away with a tidy little profit. Furthermore, the influx of unregistered shares in the market causes the stock price of the company to fall, causing more losses for investors. Always do your due diligence before working with an investor of any kind to ensure that you’re paying a fair price for any kind of investment you may engage in.

 

Tools of the trade

Micro-cap scammers rely upon the lack of public information to spread fake information. There are a number of tools that scammers use to take advantage of unsuspecting investors.

• Cold calls: some less than scrupulous brokers assemble a group of sales people to cold call investors and pressure them into buying risky stocks. Always be wary if you receive a call from a stranger. Never give away personal information such as your social security number.

• Email: spamming inboxes with junk mail has been a past time of scammers since the advent of the internet. It shouldn’t be a surprise that micro-cap scammers use emails as a way to spread false information for scamming purposes. No matter how hot the tip seems, if it came from an email sent from a stranger, you should just ignore it.

• Press releases: micro-cap scammers love to publish fake news releases. They embellish a company’s sales and projections to encourage individuals to invest their money. These press releases tend to look legitimate, so you should conduct your own research before investing in any company.

If you ever find yourself in the middle of a scam make sure to report it. First, make your broker aware of the situation, but if they’re powerless to help you contact the SEC. Small cap investing can be quite profitable as long as you watch for the warning signs of a possible scam.

Paradigm Capital Management is a trusted leader in small cap investing. With a long history of small-cap investing, Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.Paradigm Capital Management is 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.To read more, visit here: http://paradigmcapitalmanagement.weebly.com/

 

How to Lower Your Trading Risks In Penny Stock Investing?

The worst thing that could happen in this business is when you go broke. Nobody ever wants that to happen and so do you. If you run out of your investment funds, the stocks and shares just keep moving on and never stop. Of course you won’t be able to operate anymore because you have no money to spare. That couldn’t be difficult to understand, right? So that this horrible vision of bankruptcy will not happen, it is important that you set your limitations in penny stock investing.

It cannot be any clearer than that. No matter how cheap the stocks are, it is important to keep your reservoir full as well. The stock market trend is not predictable. You share can sell high today and you could lose it tomorrow. What if that loss was the last investment money you have? Sad story but this can happen to anyone who is not setting clear goals for themselves. Here we talks about some random guidelines on how to keep your savings intact.

1) Don’t spend more than what you earn. This is common sense. You can’t spend any more than what you only have. But what this means exactly is that if you are into penny stock investing, don’t pour in all your savings. Set aside a budget for your investment to bank roll. A reasonable margin would be no more than ten percent of your personal funds. Any profit made, you can always add it to your savings. But don’t go above the 10% mark unless you can really afford it.

2) Discover all you can about penny stock investing. In this same way as setting up a business, you have to understand the dynamics and the operations. This will lead you to better understanding of the trade. With it, you can make decisions with better precision, not accurate but better.

3) Know the risks you may encounter. Known to everyone in the trade, penny stock trading ranks the highest in risk scale. The stocks lack liquidity. Fraudulent exercises are very possible in this arena. You could lose your money like bubbles bursting in air. But good investors are natural risk takers. They understand it like it’s at the back of their hands. With this mindset, you can set your investment funds better.

4) Know when you need to say no and when you need to say yes. Don’t get carried away if you stock price goes up. It can go down just as fast. So it is important to learn some timing strategies in penny stock investing. This should save you from losing more money and keep your savings steady.

5) Investment is not gambling. If you lose the bet, you can’t have it back. So you bet another. Although stock market trading behaves somewhat similar, it’s not exactly the same. Investment aims for profit. When you get your share, you bank roll it for more profit. And you’re not the only one benefiting it. Gambling is just for entertainment. Penny stock investing is for serious money makers.

This list can go on. But no matter how sensible and persuasive these tips are, it’s really up to you. It’s your penny stock investing money. You have full authority over it. Small cap trading can make you smile a lot if you stop betting your money and start thinking of it as investment.

For more info consult with Paradigm Capital Management a small cap company.
Paradigm Capital Management is a trusted leader and small cap company in small cap investing with a long history of small-cap investing, company 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.
We 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.
To read more, please click here

Why Investors Choose To Trade Micro Cap Fund and Stocks

Getting involved in the stock market can be very rewarding. However, it is a fact that not all stocks are affordable. That is why the price factor of stocks has produced three levels of stock investments to accommodate investors.

These levels are the large cap stocks which involve multi-billion companies, the medium cap stocks which have noteworthy assets in respect to their capitalization, and there are the small cap fund and stocks which are commonly known as penny stocks. The term penny basically explains a lot about its capitalization. Among the three, penny stocks are the most accessible to the common investor, therefore making it their preference among the three levels.

There are numerous terminologies for penny stocks. Some stock market traders call it micro cap stocks, while a few prefer to call it small cap stocks. Several traders refer to it as nano cap stocks. Occasionally traders brand it as emerging growth.

So why do some traders prefer these stocks over other stock investments? Here are four fundamental reasons that answer these questions:

It has a very economical price, thus making it affordable to investors. Penny stocks usually have a starting price that does not exceed five dollars per share. In fact, the most usual pricing is at three dollars, one dollar or less than a dollar.

The only downside of this kind of stocks is its low level of liquidity. A good example would be stocks that are derived from pink sheets. These stocks normally lack significant information that would be vital to your decision making.

There are more press releases than large and medium cap stocks. Penny stock promoters do this for the main reason of exposing information to the public in order to attract more investors. However, many times these press releases are abused by fraudsters through the use of over hyped statements. If your promoters are credible, their media exposure will definitely increase the value of your stocks, thus generating an opportunity for profit.

Based from stats and information, penny stocks offer a high possible return of your investment. While the risks of small cap stocks trading widely known it is still possible to gain profit. Research and exposure will help you understand the trading system of penny stocks and allow you to see the numerous potentials of trading small stocks.

A number of up-and-coming companies or new products utilize penny stocks as a springboard. New products that are launched to the market do not have any assurance of success, therefore the only probable way to confirm its potential is to check the manufacturer’s background. Extensive research is required to be successful in the trading of penny stocks. Successful investors usually spend about five hours per day in researching for vital information.

Investing in penny stocks is a good first step towards the world of stock trading. It requires a very small starting capital yet provides almost identical experience and profit as the major markets. Your success will highly depend on your commitment and effort. Accurate information and sensible decisions will be the key to profit.

Paradigm Capital Management is a trusted leader and small cap company in small cap investing with a long history of small-cap investing, company 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.
Paradigm Capital Management, is 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.
To read more, visit here: http://paradigmcapitalmanagement.kinja.com/

The Best Small Cap Mutual Funds: Paradigm Capital Management

Small cap organizations are the ones that will turn out to be huge tops later on and in this way, their plans can possibly create higher return. In any case, not all organizations get to be an investment destination that produced reliably solid return for their investors. While investment into small cap funds not something that one ought to be opposed to. The specialists feel that even inside of an advantage class, for example, equity mutual funds, investors ought to have appropriate resource allocation crosswise over different classifications. It is not a decent choice to stop your entire venture into a more unsafe class.

The accord among venture counsels is that just up to 30% for every penny of equity mutual fund investment steers into mid and small cap plans. There is a perspective that if the cash is going into middle and small Cap plans it ought to be through efficient investment strategies. A single amount investment passes up a major opportunity for the advantages of averaging out the expense thus a fall in business market effects such investments more.

Why choose small or micro cap mutual funds?

The small or micro cap fund creates a lot of punch to the portfolio and is competent of providing returns that above the average when the market is booming. This time, the funds are more prone to instability as small cap companies hits stringer when markets tank. Mid cap companies are such that have around 60% of assets in mid-cap companies for around three years. Such funds are touching the greater heights when the market is favorable whilst can also clear fortunes when the flood reverses.

Best small cap mutual funds: At a glance

Small-cap mutual fund has an ability of stealing the show when the stock market recovers after a long pause. It is a general opinion that when the stock markets perform well, the small stocks offer best returns. However, when the market performs badly, they fall even more.

The reason is smaller companies hits more in worse economic situations. Additionally in bull markets, even a tiny investment can elevate the smaller stock by much high degree. Several experts illustrates that such funds encompass superior performance resulting in marginal risk they bear. Some other factors that are responsible for it are improved liquidity after the general elections. Usually the liquidity small and mid-cap stocks more conveniently as compared to large funds.

Paradigm Capital Management is a trusted leader in small cap investing.
With a long history of small-cap investing, Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.
Our strategies are available through separately managed accounts, mutual funds, and onshore and offshore long/short funds—all of which draw upon the same fundamental research and investment process that have been the key drivers behind our significant, long-term outperformance.

To learn more about how our capabilities align with your long-term goals, please contact us at (518) 431-3500

To read more, please click here

How Do Micro-Cap Fund and Stocks Fit Into Your Portfolio? Ask Paradigm Capital Management

Micro Cap Stock

Micro-cap Funds and stocks are known for being little investments which can provide massive returns, and of course, these high rewards can mean that there is a higher risk involved with getting involved with them. Hence, if you want them to become involved in your portfolio, it might be worthwhile making them more of a minority in your assets, in contrast to the bulk of your investments being in entities with a lower risk.

Before they can fit into your portfolio, you need to do as much as possible to find information regarding the business itself. With larger investments that are on the stock markets, this be easy – as research analysts provide the latest information concerning business activity. However, because micro-cap investing are more complicated and of a lesser value, they do not get the notice and exposure of larger stocks – meaning that you have to use your own initiative in order to make a judgment.

How highly you invest into a micro-cap stock can depend on data which should be readily available to you – depending on how long the company you are looking at has been active. The 52-week high/low is a really great way to gauge how a micro-cap stock is performing, as you will be able to see a micro-cap’s lowest and highest share price within an annual period. From here, you can get an idea for how much a share is fluctuating.

You may find it hard to justify the presence of a micro-cap fund and stock in your portfolio, particularly if it is not earning the money that you need it to earn – or the money that you expect it to. It can take time for the rewards to emerge from making these investments, as the firm works on researching and developing their product, or getting it marketed. However, if you believe that a company has the potential to succeed, persevering with their progress could allow you to make amazing returns when the share prices begin to rocket from the minimal amount you paid provisionally.

If you believe that you need help in making sure that the micro-cap stocks you are interested in will fit into your portfolio, there are also a number of things which you can do to achieve your goals. There are investment companies that will follow up on the companies in which you are interested, doing the necessary research and reading the paperwork necessary for a clear judgment on a company to be made. From there, you can proceed toward a professional opinion on whether or not stocks would fit into the portfolio you already have, whether they would pose too much of a risk to your assets, or whether you would need to do some rebalancing with current investments to minimise the risk and make the acquisition smoother.

With a long history of small-cap investing, Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.
Paradigm Capital Management is 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.
Know about our expert, visit here: http://paradigmcapital.com/team/key-personnel/

How to Invest in Small-Cap Quality Stocks? Consult Paradigm Capital Management

The stock market is a big place. On one end of the spectrum, you’ll find the massive businesses that generate billions upon billions of dollars each year. On the opposite end, acting as the perfect counterweight is a medley of smaller firms. The beauty of small cap investing is that these small companies, if the factors are right, have the potential to blow up in size. This is good news for any investor along for the ride.

Understand that “quality” stocks aren’t just a matter of opinion. There are a number of criteria that a company must meet before they can be considered a quality stock:
• Stability
• Impeccable balance sheets
• Consistent high returns on equity

Make sure to do your due diligence and identify the difference between a lower quality and higher quality stock before investing with any small cap mutual funds. Now we’ll dive into how to invest.

Find a broker

Before the advent of the internet, you had to physically drive to your broker’s office to trade stocks (or do it over the phone). Now there are a large number of online trading systems that you can easily set up and get going right away. Ultimately you want a broker that has a good reputation. Usually, they’ll be able to give you good advice on the type of stock to invest in. If you work with an actual person as opposed to an online platform, it would be a good idea to find someone who has small cap trading experience in their portfolio. If you feel using an online platform is right for you, many of them come with tools that allow you to analyze the market which will allow you to make smart, informed trading decisions.

Identify small companies with growth potential

When you first begin investing in small cap companies, you want to do your research and find small companies with massive growth potential. You must analyze their balance sheets and identify whether or not they have the cash on hand to survive unexpected events. Are they serving markets with massive growth potential? How much debt does the company have? These are the type of questions you want to ask yourself as you’re identifying a good company to invest in.

Know when to buy and when to sell

When it comes to investing in any kind of stock, timing is everything. There’s a direct connection between the time that you invest and the rate of return and degree of risk you can expect from a trade. For example, it would be a good idea to jump onboard with a company after angel investors have taken an interest in it. A good time to sell would be when institutions have come in with heavy investments and have begun driving up the price of the stock.

Research what the top institutions are trading

Why do all of the hard work yourself when you could have professionals do it for you? Mutual funds spend massive amounts of money researching potential investment opportunities. Institutions are required to file 13-F HR reports with the SEC. If you study these reports, you can gain a sense of what they’re following and what may be of interest to other institutions.

Don’t be blinded by the price of the stock

Just because the price of a stock is low, that doesn’t automatically make it a bargain. In fact, that may be an indication that the company has little to no earnings and you may very well be making a bad investment. Keep in mind, however, that when it comes to small-cap stocks, many businesses have doubled in size although they didn’t show an initial sign of earnings right away. You’ll have to use your best judgment as you analyze different small cap investing strategies.

If you have any doubt or query consult us at Paradigm Capital Management.
Our three decades of experience provide an exceptional level of insight that is reflected in our high-conviction portfolios. Our team structure facilitates continuity and diversified knowledge of the portfolio while our entrepreneurial culture fosters creativity and rewards independent, critical thinkers with autonomy and incentives tied to performance.

To learn more about how Paradigm Capital Management’s capabilities align with your long-term goals, please contact us at (518) 431-3500

Or visit here: http://paradigmcapital.com/