Penny Stock Alerts for Safe Investment

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

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Let Penny Stocks Be The Answer

If dealing in Penny Stocks is such an unproductive form of investment, why is that so many people are forever in search for a share of the profits? Penny Stocks, as it happens, found their origin in the mining districts of Utah, USA in the late 1940s. Unregulated stocks for mining rights for uranium were sold across the coffee counter in a cafe in Salt Lake City. This was more reminiscent of the Wild West days than the post World War II era. Today, penny stocks have come to trade all over the country and enjoy international acceptance. Though not a regular occurrence, they can also trade on US Security Exchanges like NYSE, AMEX and NASDAQ with a minimum of formalities.

 

The Securities Exchange Commission has defined penny stocks as stocks of small companies generally trading under $5.00. In the U.K. this figure is one pound sterling. This may seem a misnomer since it is not unusual to see stocks on NYSE etc being traded for prices lower than those on the penny stock market.

 

Yet, people who are just starting out fail to realize that the penny stock market is one of the “undesirable” places to do business in. Many of them are poorly run companies and falsely claim that every penny stock has a great service or a product attached to it. They have fancy websites, almost inaccessible offices and a UPS mail box for an address.

 

They have no earnings, no cash or balance sheets. And no future prospects. Still, it is little wonder that these ‘Fly by Night’ ventures rake in millions of dollars. Most of the conservative investors are aware of the risks involved and steer clear of penny stocks. But for the vast majority, for whom an additional income is the lifeline to survival, the thought of prudent investing and earning in thousands of dollars is a temptation too strong to resist. After all where can you buy shares for a few cents and sell them for at least 2-3 times the amount in a matter of hours.

 

Facts prove that for a majority of people, possibly higher than 95%, it is a no-win situation. The simple reason for this is that when it comes to penny stocks it can be quite difficult to, single-handedly, gather information about their background and reliability. Besides, with stocks hovering at a few cents a piece most people are inclined to be casual and, sometimes, frivolous. They prefer to exercise their own judgment rather than seek professional help. This often turns out to be catastrophic.

 

Investors have come to understand that a majority of the penny stock companies may not only fall short of their promises and commitments, but may become extinct altogether. Yet, the 2%-3% companies that survive produce all the millionaires. These companies have outperformed just about every asset including gold, real estate and blue-chip stocks. Investments may be limited from $500 to $2000, and penny stocks, besides being readily available, move very quickly when handled in a correct manner. And it is no coincidence that giants like IBM, Apple and others have tread on the same humble road to success.

 

Our experts at Paradigm Capital Management always suggest that you do not place all of your money in a high risk zone without a proper assessment of your proposed investment. Your success on the long run will depend on the quality of your broker. Pick a traditional broker rather than a discount broker. The traditional ones, though expensive, provide you with Investment ideas, preparation of reports and your portfolio’s performance. Whether it is to buy or sell, they will handle all the transactions.

 

But remember, that on the long run, individual investors do not lean on professional expertise for longer periods than is necessary. So it is up to you to hone your skills and develop the capability to make sound financial decisions.

 

Also read: Ways to Compile the Best Penny Stocks List

Buying and Selling Penny Stocks the Easy Way

Online brokerage sites, are the easiest way to buy and sell penny stocks. After setting up an account, you will need to fund it with a balance of cash to cover the cost of stock purchases and transaction fees. These stocks are a high risk, high reward game, so their buy and sell activities tend to happen quickly. An online brokerage account allows you to monitor the stock activity and execute your trades, as soon as the circumstances are favorable.

 

Many websites offer tips, identifying the “hot” stock of the day, week, or hour, and offering some analysis into the stocks potential for revenue. These websites also offer links to purchasing sites. These sites also give investors access to the portfolios and trades of successful investors. Potential investors can see which stocks have been making money over any given time period. Another benefit of these penny stock sites is the access they give you chat rooms, blogs, and discussion forums. On these sites, investors have an opportunity to discuss stock recommendations and strategies with other investors.

 

Once you decide on a stock to purchase, you simple enter the company’s trading symbol on your online stock broker’s platform, and purchase the stock. Since you are executing these trades without a broker, it will be up to you to monitor the stock’s performance. These stocks are volatile, so have a firm sell strategy in mind. You will need to sell quickly once you reach your threshold. The value of penny stocks changes and fluctuates more quickly than traditional stocks. You can take a huge loss of you don’t sell quickly.

 

Online brokerage firms may not offer you the research and due diligence you need to make informed decisions. Penny stock traders can easily become victims of fraud, especially since there is much less regulation. Be wary of any stock tips you receive via email, fax, or social media. Often times, these investors are compensated for their participation in the marketing of a particular stock. Be sure that you understand the position of whomever is recommending the stock. You can find unbiased and comprehensive research at sites like Yahoo Finance and Google Finance.

 

For investors with a high tolerance for risk and a taste for big reward, penny stocks are an easy way to get into the investment game. A long as you do your due diligence and closely monitor your investment, penny stock investing can provide big dividends for limited investment. Online trading platforms make researching, purchasing, and monitoring your penny stocks convent and affordable.

 

If you’re interested in making more money with low-risk investments whether you’re a seasoned trader, looking for additional income, or a starter, you can absolutely grow your income and improve gains by consulting with our experts at Paradigm Capital Management.

 

We at Paradigm Capital Management have resources that can dramatically increase your returns and reduce the risk of losing your cash. Contact us at (518) 431-3500.

Read also: Finding High Valued Penny Stocks

The Best Penny Stocks to Buy Now Deserve Contemplation

What are the best penny stocks to buy now? The sad truth is that over 90% of all penny stocks go to zero. Think about it, stocks never start at pennies per share, they can only get that low if something has already gone dramatically wrong. Some people talk about how certain major stocks all used to be penny stocks but most likely this is false.

 

The truth is they were worth a minuscule fraction of the price that they are currently valued at, but that doesn’t mean they were penny stocks. Stocks do something called a stock split, the stock price is cut in half, and the amount of shares available double. In addition the people who own shares are given the chance to own twice as much. What appears to have once been a stock worth pennies may not have been. The best stocks to buy now, aren’t necessarily worth pennies, but they will have that appearance once they have gone up significantly.

 

You have to really understand statistics if you want to invest in penny stocks and you have to apply it. If a stock either doubles or goes to zero, and you get it to double 10% of the time, that’s not math that’s in your favor. However, if the stock went up 10 times the amount and went from 10 cents to $1 or more, then you have the system working. 9 times you will lose 10 cents, but on the 10th time you gain 90 cents or more. So that is the break-even point at a minimum. Unfortunately, this can still be a losing proposition if you can’t handle money management.

 

In order to maintain your ability to buy stock, you will need to be able to continue to invest. If you buy 10 stocks and you lose, you will be unable to buy any more if you invest 10% of your bankroll. You will be putting the odds against you. Now that’s why you need to never invest more than 2% of the your money available for trading. That’s enough to handle going quite a few times without a win and still having enough invested to dig yourself out. Buying penny stocks more so than any other is about money management. There are no sure things. The fact is most cheap stock investors are hoping to get rich off a lotto ticket. It’s not really smart to buy stocks just based on their share price. It can be a reasonable strategy if you really know what you’re doing. However, there’s so many stocks available, it’s better to focus on buying stocks. You should be looking for the best stocks to buy now, not the best penny stocks to buy now.

 

If the stocks happen to be penny stocks, then you can still buy them, but understand that over 90% of traders go broke at least once and over 95% of these buyers lose it all. So the best penny stocks to buy now, are those that also happen to be the best stocks to buy now. If it’s not the best stock, it has minimal chance to go up. That’s why there’s no room for me to give actual penny stock recommendations because most stocks for cents on the dollar don’t pan out. I’d be fighting the odds, and you have to understand that first before you think you know the best penny stocks to buy now. It’s possible to know the best penny stocks to buy now and still lose it all. The reason is, everything has a chance to go to zero, just as everything has some chance to go from its current price to double or triple.

 

Stocks under a dollar have the highest probability of going to zero. Stocks never debut for under a dollar on the Nasdaq or New York Stock Exchange. The best penny stocks to buy now aren’t sure things, they’re just “less uncertain” then all of the others. Maybe the best penny stocks only go to zero 70% of the time. Sure if you lose your investment 7 out of 10 times and make 10 times your money, it’s a good investment, but only if you have correct money management. Most people have $1000 to invest, and they invest $300, and lose it all, and then they only have $600, they invest $200 and lose it, they have $400, they invest $100 and they lose it and now $300, they invest $50 and then they lose and with $250 they invest $20 and the stock goes from $.10 to $1 ad they sell but now they only have $450 which is less than what they started with. So you can see how it’s possible to have what looks like a winning trade on paper.

 

They won on the 5th investment and had they kept all the investment size about the same, they would have ended up having tons more money than they started with. In fact, if they invested $50 5 times, they’d be down to $750 then they invest $50 more and they’d be up 500 to $1200 and it’s a 20% gain. Most people go broke not because they select bad stocks. They may be convinced that the free stock picks was simply bad advice, but in reality it may have been excellent advice that just didn’t work out. The cold hard truth is that you can’t really make money with cent stocks without good money management whether you like it or not. That leaves almost no room to really get rich off these super cheap stocks, but you certainly can manage to find some room for profit. There’s a reason why you never hear stories of Warren Buffett or Monish Pabrai investing in 99-cent stocks or cheaper. First the market cap is so small they would probably buy half the company with the change in their pockets compared to the average Joe. Second, they never got rich off buying penny stocks because most of them don’t work.

 

Well the best penny stocks to buy now just don’t exist in the way you think they do! That does not mean that it’s a worthless endeavor to buy penny stocks, it just means that those stocks deserve contemplation. first ask yourself “would I buy this right now before all other stocks?” “Is this best penny stock to buy among all best stocks to buy?” “Am I trading these stocks worth pennies with a trading system?” “Do I have correct money management?” There are several other factors to consider. In general you should be very careful when buying penny stocks and understand that there are other factors that determine whether or not a stock is cheap. Just because it is worth cents on the dollar, does not necessarily mean it is the best penny stock to buy now and that it is the most undervalued stock out of all of them on the market.

 

To learn more, consult with the experts at Paradigm Capital Management, a penny stock and hedge fund managing firm. Our three decades of experience provides an exceptional level of insight that is reflected in our high-conviction portfolios.

 

Read also: The Importance of a Penny Stock Broker for Successful Online Trading

Reasons To Own Small Cap Value

If you want to earn the best returns on your stock portfolio, you need to own small capitalization (less than 2 billion), value oriented stocks. Here are the reasons by our experts at Paradigm Capital Management:

 

1) They Outperform Every Other Class of Stock. Period.

 

Ibbotson Associates analyzed data from 1926 to 1997 and concluded that small cap value stocks outperformed the general market by 4.3% annually – more than any other class of stocks. Vanguard published data that showed, from 1927-2004, small cap value outperformed large cap value, blended, and growth portfolios. A Fama and French study shows this class outperforms all others in recessionary periods as well. Another study by Fund Evaluation Group shows that small cap value has outperformed every other group, and by a wide margin.

If we want the best returns for our portfolios, we have to invest in the best performing class of stocks.

 

2) The Market’s Valuation of Small Cap Stocks Is Inefficient

 

Stock analysts overwhelmingly cover large, well known companies. Their clients prefer to be in stocks of companies they know, and the investment firms they work for are forced to purchase large cap stocks so as not to exceed statutes by owning too much of a firm. When funds are operating with billions of dollars of assets, it doesn’t make sense to invest in small companies – any investment returns from these will not materially affect the fund’s performance because the position is too small.

 

One of the best books ever written on investing, Peter Lynch’s One Up On Wall Street, explains this phenomena well. Lynch earned stellar returns running Fidelity’s Magellan fund by buying hundreds upon hundreds of small positions in promising small cap stocks and holding them until the market realized their value.

 

Small cap stocks are valued inefficiently because of the lack of research on them, leading to misunderstanding of a company’s business or prospects. Add to this the general investment community’s unwillingness to invest in small caps, and you have a perfectly inefficient market for them, leading to bargains.

If we want the best returns for our portfolios, we have to take advantage of inefficiencies in the system.

 

3) Small Caps Can Become Big Caps

 

This one is obvious – you’re not going to find the next Microsoft or Wal-Mart by investing in Microsoft and Wal-Mart. When Microsoft started trading on the NASDAQ in 1986, it’s market capitalization was about 700 million. Today, it’s worth 260 billion – giving you back your initial investment 370 times over (and that’s not including dividends!).

 

Relating to point #2, once small cap stocks grow to a certain size, institutions and mutual funds can safely invest in them without worrying about statutory regulations or problems of scale. This leads to an influx of institutional money, sending stock prices up even farther. As market cap grows, these stocks get added to various indexes, which leads to investment by index funds that track them.

 

Small caps by their very nature have more and larger avenues of growth than large capitalization stocks. This, plus the intricacies of the financial markets, give them several advantageous characteristics for share price appreciation.

 

If we want the best returns for our portfolios, we need to own the best opportunities for revenue and earnings growth.

 

4) Small Caps Are Attractive Buyout Bait

 

Large companies are always struggling to deliver growth to their shareholders. Adding meaningful growth to a company with billions of dollars in revenues and earnings is not easily done. These large companies are often bureaucratic nightmares, slow to adapt with new trends and not nimble enough to stay ahead of changing markets.

 

Instead of taking the time, patience, and effort to develop new businesses, these cash rich mega-corporations often turn to acquisition as a quick fix for growth. Also, private equity groups will often buy these companies to restructure and then take them public again, reaping a big windfall. Buying small companies, even at a significant premium to market price, is often a drop in the bucket that delivers new opportunities in an instant.

 

5) Warren Buffett Says So

 

No less an authority than Warren Buffett himself has guaranteed that he could earn 50% annual returns investing sums of around 1 million. How would he do this?

 

“…look for small securities in your area of competence where you can understand the business”

 

If we want the best returns for our portfolios, we’d be wise to listen to the world’s greatest investor!

 

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/

Paradigm Capital Management Tips on Watching Hot Penny Stocks

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?

High Volatility Investments

Penny stocks and options are high volatility investments that attract both the trader and the long term investor because of the small amount of capital required to make substantial gains as compared with less volatile higher priced stocks. The long term investor buys a stock believing that a company’s value will increase over time and the stock price along with it. When he buys an option it is usually to reduce the risk in owning the underlying stock. The short term trader looks at things a little differently. Typically a trader looks for large percentage price movement over a short period of time. Large percentage, short term price movements can be found both in options and certain penny stocks.

 

Penny Stocks are often defined as stocks priced below $5. It is often implied, but not necessarily the case, that penny stocks are also micro caps with capitalizations of less than about $250 million. Penny stocks can be found across the full range of capitalizations from micro caps to large cap stocks. For example, Sun Microsystems (NASDAQ: SUNW) met the definition of a penny stock for much of 2004, trading between $4 and $5. In late 2004, trading between $5 and $6 per share, its capitalization was over $18 billion. The price of a large cap $18 billion stock would rarely be expected to move by a large amount over a short period of time. The largest percentage daily price gainers, of say 50% or more are typically stocks that started from $5 or less. But they are typically micro caps.

 

As a group, micro cap penny stocks are avoided by large funds because prices are too easily affected by sizeable buy and sell orders and capitalizations are too small to affect a large fund’s bottom line. Buying more than 10% of a publicly held company carries with it certain insider responsibilities. Large funds must wait until stock prices rise typically above about $20 before they can become seriously involved without moving the price and still have price movement impact their financial results. The small investor has a distinct advantage over large fund managers when he takes an early position in a good micro cap penny stock.

 

Short term options are best suited when the underlying stock has a higher price, say above $50. While it is more likely that a micro cap penny stock will gain 50% in a single day than it is for a higher priced stock, the typical 5 or 10 to one leverage that options provide makes it only necessary for a higher priced stock to move 5% to see a 50% gain in the corresponding option price. There are several additional considerations involved in choosing an option. Not the least of these is the market environment. When chosen properly, options for higher priced stocks provide the same large daily price movements of penny stocks. Lower priced stocks need to move by a larger percentage in order to see a similar percentage move in the corresponding option. They are only likely to do so if they are micro cap penny stocks.

 

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/

Paradigm Capital Management Comprehensive Lessons on Hot Penny Stocks Trading

What basically are hot penny stocks?

Well, its definition can vary depending on whom you ask. But in general, a hot penny stock is basically a stock that rapidly increases in price with numerous investors or buyers getting into to buy shares of it. However, it would be wise to do a bit of research before you consider a stock “hot”. This is because there are many factors that contribute to the popularity of a stock and it isn’t always because that particular stock is “hot”. Sometimes a professional promoter can make its stocks seem that way even when they are not.

 

What to be Wary of?

Often, hot penny stocks can have certain pitfalls and traps which can get a newbie investor into a whole lot of trouble. Therefore, one must know what to avoid in order eliminating the chances of accidentally purchasing undervalued stocks and subsequently selling them after a short period of time in order to receive a quick return on what you have invested. One of the best ways to avoid this is to acquaint yourself with the background of the stocks you intend to invest in. Make sure that you know the stock’s history, basically how it has performed in the past, and if you see anything that doesn’t feel right then you should think twice about going through with the investment.

 

You should also check the company’s current financial performance, their business plans, future investments as well as their top management. It might seem a little too much but doing this would help you protect your investment.

 

Hot Penny stocks can be a bit difficult to track because of the lack of information and because these stocks are often traded on pick sheets. However, you would be able to keep yourself up to date through newsletters that are provided by hot penny stock brokers. These newsletters would provide you with information and background material you would need in order to help you familiarize yourself with a particular hot stock.

 

How Much Should You Invest?

Now, this is a question that many beginners ask. Whilst there isn’t any standard amount or limit that you should impose upon yourself, there are certain things that you always have to keep in mind. Ask any experienced investor and they would inform you that the only way to make sure that you don’t lose too much money is through investing only what you can afford to lose. Point is, loses are inevitable in this kind of business and as such, you should be ready for it beforehand.

 

If you are serious about getting into trading hot stock then it would be good to do the necessary research and learn as much as you can before you make any move. It would be good to observe and learn from professionals like those at Paradigm Capital Management, as they could provide you with very useful information. Needless to say, gather all the knowledge that you can, filter and starting building a foundation for your own trading strategy. After all, in this business, tools are just there to assist you; knowledge would always be one of your greatest assets.

 

To learn more, please visit here: http://www.paradigmcapital.com/

Dysfunctions of Penny Stocks – Paradigm Capital Management

People lose a lot of money because of market crash. Although a lot is out of investors’ control, there are still lessons that can be learned when you are experience a market downturn. Our experts at Paradigm Capital Management discusses some of them below

 

Difficulty in obtaining Information on penny stocks

 

It is a true fact that it is not so easy to get proper information on existing stock market and corporation’s worth. Due to lack of knowledge about the company’s value people suffer many time. Price and volume data possibly will not be directly available to the public and may only be made available to you by the stock brokerage you’re dealing with. On average, pink sheets for penny stocks are only made accessible to brokerage firms.

 

Deception and uncertainty

 

This business is exposed to maltreatment, deception and uncertain sales practices as revealed in their history, and fraught with brokers who use high pressure sales techniques and cold calling.

 

Penny Stocks are those, which sell for under $5 per share on the exchange and are small company stocks. They are easy to purchase, but they can be hard to sell. They are easily manipulated because they are so thinly traded.

 

These stocks are hard to unload

 

Once you have bought the share, then your work is to sell it. For this you’ll need a broker, who may not agree with your decision regarding sell. Besides that brokers may be less than loyal of your wishes to sell your stock, and convince you to keep hanging on or trading these supposed “investments”.

 

Lack of History

 

Several companies measured as micro cap stocks are either newly formed or approaching bankruptcy. These companies will generally have poor track records or none at all. As a result, this lack of historical information makes it difficult to determine a stock’s potential. An oft-quoted statistic shows that at least 70 percent (!) of penny stock investors lose their lose money, not counting the risks of fraud or abuse.

 

A highly chancy trading

 

If you one way or other make money from penny stocks, you may analyze this stroke of fortune entirely to your skill or careful analysis or the due diligence you poured into making your investment decision. It may simply be due to pure luck. These stocks are extremely hit or miss, just like at the slot machines.

 

Brokers may want to push penny stocks upon customers because they can charge more for such a stock. Be watchful of the charges a brokerage can impose on you for trading such stocks.

 

No Minimum Standards

 

Stocks on the OTCBB and pink sheets do not have to realize minimum standard requirements to remain on the exchange. Sometimes, this is the reason that the stock is on one of these exchanges. Once a company can no longer maintain its position on one of the major exchanges, the company moves to one of these smaller exchanges. Whereas the OTCBB does require companies to file timely documents with the SEC, the pink sheets have no such requirement. Minimum standards act as a safety cushion for some investors and as a benchmark for some companies.

 

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/

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/