If you are investing in the stock market, try to putting some of your revenue on OTC stocks. You must read Penny stock alerts and newsletter to discover the well-kept secret in the world of investments where savvy investors are making good profits regularly. Know more about secret of safe investment in the market.
Penny stocks are a type of investments valued under $1, yet some people believe that any stock valued under $5. Without keeping in mind the genuine cost per stock, the fact of investing in penny stocks, is something that help investors making a huge profits, only for those people who don’t have big capital to invest in costlier alternatives. For instance, if you only have $500 to invest and you get a perfect biotech penny stock valued at.50 cents per stock, then you can buy 1000 shares. You should follow me.
Additionally, if you were really invest your money in a Pink Sheet Stock that you had done after a few researches and follow the information available anywhere, certainly you can potentially make your money just double and in many occasions may earn triple or expand your investment in a very short period of time. But how can you do this, here are well-known facts of making a huge profit by investing your capital in penny stocks.
Pay attention on the “secret” lies in doing extensive research and penny stock alerts. If you are aware that what to actually search for, you can do such research yourself? Else, you can register or sign up with some popular sites online to get free penny stock alerts regularly. Many stock broking sites provide these reports and newsletters in different ways for members. Reputed stock consulting firms like Paradigm Capital Management will mail you a hard copy every month of an updated list of the best penny stocks to buy, although other consulting firms will deliver you the similar information about current trend of the market and top 10 penny stocks to invest into your email on daily basis.
Signing up to get penny stock alerts is really simple, hassle-free, and best of all its absolutely free for members! You just need to provide your email address where you want to receive alerts for instance and that’s it, without strings attached! These consulting firms earn money from the different brokerage agents and not directly from investors. That’s why they provide the real information to investors through mail.
Also read: Making a Start in Penny Stock Investing
This is very often for you to receive information via email alerts or newsletter from websites that offer financial tips or news about hot penny stocks making huge profits on investment. This can be taken as true with some grains of salt as making profits with hot penny stock investments depend on many things and very subjective in nature.
Before making any decision about penny stock trade you must be very careful. It requires diligent research about the companies and shares in spite of following the tips blindly. In most of the cases these tips are so lucrative that investors cannot resist about investing. It is not that every newsletter or alert is wrong, but investing on the basis of these tips only can be troublesome. There are certain points that must be checked through before you go for any decision about penny stock trade. First of all you must cross check the information with the chart. If the stocks are already moved up within last two weeks then chances are there that it will go down. This is very general advice. When you will go in depth about hot penny stocks you will realize that it is not always the case that such stocks can bring you huge profits. Instead you can lose significantly if you invest in stocks that have already reached their peak level and are about to go down.
You must learn the basics of chart reading in order to obtain information on penny stocks that is most critical to make decisions about retaining or selling the stocks. There are no complexities on chart reading all you need to understand is to learn about getting the position of stocks. This helps you to invest into the hot penny stocks at safe point neither early nor too late. It is extremely useful to check on the details regarding penny stock tips to prevent you from any losses. Penny stocks are offered mainly by the companies that comply with least listing requirements and follow few standard procedures. You must go thoroughly about the nature of the penny stocks as they are highly fluctuating and illiquid to trade with you can get profit from these only by having constant watch.
In case you are new investor then you must pay some extra attention to the details about researching out the information on your own without making any hasty moves. Penny stocks are highly unstable and can lend you nowhere if you invest by just going through tips or newsletters with information about hot penny stocks. There are possibilities that hot stocks that you are looking for is done with the moves to confer profits and now it’s time to move out of it. These tips and alerts about hot penny stocks are correct in majority of the cases about movement of the shares but cannot offer information precisely for each and every stock; your discretion is crucial factor.
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.
Read also: How Do Successful Day Traders Pick Top Penny Stocks?
Whatever term you like to use, whether it be penny stocks or micro cap stocks, you probably realize the huge potential there is. There are a lot of folks out there who bet on a stock and won big time.
The flip side is that many people lose a ton of money by betting on cheap equities. The equation of playing micro cap stocks amounts to putting the odds in your favor as much as you possibly can, and attempting to minimize your risk as best as you can.
Let’s look at how to put the odds in your favor to maximize profit potential before you buy a micro cap stock:
- Identify bullish technical analysis patterns that suggest a break to the upside
- Monitor news releases and gauge the optimism portrayed within the news
- Recognize past resistance levels and plan to exit or reduce your position accordingly
- Check the percentage of shorts in the stock you are interested in, the higher the better
- Research and recognize future newsworthy events that could negatively or positively affect share prices, for example quarterly earnings release dates or projected dates for announcements on FDA approval of new drugs that have the ability to bring large profits to small pharma companies.
Now we can look at how to minimize our risk when playing micro cap stocks, since undoubtedly there will be some losers:
- Utilization of stop loss orders, setting them just below previous support levels can save you an absolute huge amount of money if the stock goes south fast
- Watch news develop concerning earnings power for the company and sell if you find credible evidence that bearish sentiment will prevail by the time the next quarterly earnings release is out
- If your gut tells you to sell you with a small or moderate loss, do it!
If all of this sounds like gibberish to you, our experts at Paradigm Capital Management recommend that you get a little more familiar with micro caps and stocks in general. However don’t think for a minute this stuff is over your head. If you have a burning desire to make it big by playing the market, then you stand an excellent chance at achieving your dreams. Maybe you just need a little hand holding to get you on the right track.
For more details you can consult with the experts at Paradigm Capital Management a trusted leader in small cap investing. The company employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.
To learn more about how Paradigm Capital Management’s capabilities align with your long-term goals, please contact at (518) 431-3500
Or visit us here: http://paradigmcapital.com/