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

Advertisements

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

Determining the Best Time to Do Penny Stock Trading

When is the best time to do penny stock trading? As with any investment in any type of stock, everything is speculative. If everyone could determine the exact time to jump in, then everyone would be a millionaire. However, there are of course a good and bad time to trade. Due diligence is something that many experts recommend to both new and experienced traders. While stocks are generally considered to be a very dangerous investment, the rewards are also huge. You probably know by now that the key is to minimize the risks of investing in pennies. You should be able to search for some signals that indicate it is a good time to purchase a penny stock.

 

Conventionally, a penny stock is any stock trading for under a dollar per share. But you will hear that it is technically any stock that sells below $5. Getting started with this type of stock trading is easy. Simply work with an online stock screener that categorizes all stocks below $5 or $1. A stock can trade for a very low amount since the stock is issued by a businesses that is still small and starting out, hoping to grow. There is a risk here since because in reality, new companies can just as easily go out of business. On the other hand, which is evidently viewed negatively, a penny stock can also be a stock of a business that’s been operating for some time but has fallen into a downward spiral financially. So be careful what you pick – these are just some basic precautions, which you will soon learn through experience how to tell when to invest in a company or not.

 

If a stock has gone way down, don’t jump in, unless if you really believe that the business will be able to get back on its feet in unlikely times. Perhaps there will be new management. Or maybe there will be a big merger coming up. Still, if a stock price gets under a dollar, it is most likely that it’s not coming back up. Thus, comprehensive research, observance and experience will give you a better idea when the best time is to do penny stock trading.

 

If you start out with hot picks, you’re on the right track. Starting out with worthless picks will only mean a road to disappointment. When penny stock trading, you’d want to look for those companies with the highest potential. Try to focus on technology, target a niche, and work with acquisitions and mergers with larger companies.

 

Penny stock investing can be a good venture if you know where to invest your money on. Consult with Paradigm Capital Management to find the hottest penny stock list online. Find tips and tricks from the Paradigm Capital Management experts, and start building your penny stock fortune now.

 

Read also: A Look Into High Volume Penny Stocks

Preparing Your List of Penny Stocks to Trade Profitably

Well, its not unusual for new investors to prepare a list of penny stocks that they can hope to build their fortune with in a highly lucrative stock market. Trading in penny stocks indeed appears very tempting and lucrative, its especially popular amongst small investors who intend to build a fortune with very little capital to invest with initially.

 

In that case who wouldn’t be tempted to buy such dirt cheap stocks in such huge volumes. Lets suppose you as a day trader invest $500 to buy 5000 shares @ $0.10 of a highly potential penny stock, and after few weeks if the price of such a share increases by say 500% in that case the share price would be $0.50 each. So an investment of $500 would then fetch a return of $25000. That too in matter of weeks. If you had invested $500 for a large cap share, it won’t ever give you a 500% return, that too in just few weeks time.

 

No wonder day traders are so much obsessed in preparing a list of penny stocks and narrowing down their focus on just few of these that they wish to build their portfolio with four or five of the hottest penny stocks. Now how does one really go about scouting for such shares with which to build a list and then trading them for fortune. For this one needs to carry out research and analyse the results to find which amongst the stocks are generating interest amongst investors that has resulted in some kind of momentum. How is the shares moving and what kind of pattern does it make, that instantly is a hit and considered hot for investment.

 

A novice will be overwhelmed with the large flow of data from various sources including stock exchanges. Moreover since the shares are valued less than $5 hence they are not subjected to strict regulations of the SEC to disclose everything about its nature of business, its future plans, its past performance etc. All these details are available only with expert traders and brokers. Moreover the market being extremely volatile makes trading in penny stocks highly risky. Its always reminiscent of a war zone kind of situation for investors to put in their money with the hope to build a fortune around it. There are risks of investing in over hyped stocks and being victim of a pump and dump scheme by scam artists waiting to grab your money.

 

There are of course sophisticated stock technical analysis software and newsletters offered to paid members from highly reliable and reputed sources who can help you to prepare a list of penny stocks to trade profitably with details of entry and exit points, to minimize risk and for maximum gains.

 

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.

 

To learn more, visit here: http://www.paradigmcapital.com/team/key-personnel/

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

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?

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/

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/

The Importance of Knowing a Company’s Market Cap Before Investing in It

An investor will measure a company’s performance based on its sales, but he should be aware of its size in terms of the market value. By knowing the market capitalization of a company he can diversify his stock portfolio among different asset classes. Because market cap not only measures the company’s value in the open market, but also give insight into its future performance. So market cap plays a major role in deciding the future and prospects of a company.

 

We can calculate market capitalization by multiplying the per share price of a company with its total number of outstanding shares. This number will give you the total value of the company, or help us to know how much it cost to buy the company in the open market. Most of the investors use market cap to compare the performance of similar sized companies or companies dealing with the same business before making an investment decision. If the per share price of a company is $50 and its total outstanding shares is 100 million, then its market cap will be $5 billion. And when a similar sized company’s per each share cost is $10 and its total outstanding shares is 400 million, and then its market cap will be $4 billion. If we evaluate these two companies, the second company’s market capitalization is higher than the first one and this gives the investor a clear picture about the company’s growth rate, risk, dividends and international exposure. So there can be companies with lower sales but tremendous growth opportunities. Such type of companies will have large market caps and they will become one of the investors’ favorite.

 

Based on the market capitalization companies are categorized into three types. They are small cap, medium cap and large cap.

 

Small cap companies – The companies belonging to this category will usually have a market cap between $150 million to $1 billion. Belonging to small cap category, these companies per share price will be small or total outstanding shares will be relatively small. So they are considered as relative less risky stocks. Some analysts often consider these stocks as good investments due to their low valuation and possibility to grow to a mid cap or large cap stock. If we invest wisely in such type of stocks, which is by making a technical and micro analysis about the company, then we can anticipate good returns. If you can track the hidden gems in the small cap space then it’s a good idea to invest in such stocks, as nothing else can appeal you more.

 

Mid cap companies – The companies that have market capitalization in the range of $1 billion to $10 billion will come under the mid cap category. These companies are considered to have achieved a relative stability in the market and they got ample growth opportunities to come under the large cap category.

 

Large cap stocks – The companies that belong to large cap will have market capitalization above $10 billion. The big boys that come under this category are considered as the safest companies with regular dividend payouts. This category includes many blue-chip companies, oil giants, telecom companies and consumer product kingpins. In the U.S, some companies like AT&T, Johnson & Johnson, P&G and Wal-Mart are perpetual favorites among many investors. If you are ready to play without fear, then increase your stock portfolio with large cap stocks and enjoy great returns.

 

As a good investor, we should always update our information about the companies in which we are planning to invest or already invested. To gather news we always depend on daily newspapers, other than home television and internet. To become a smart and intelligent investor, one should assess the market capitalization of the companies he is going to invest; though understanding the present market conditions is also a key factor in deciding a company’s performance.

 

Read also: Become an Insider and Reduce Risk in Penny Stock Trading