Paradigm Capital Management Tips On Being A Penny Stock Picker

Generally, penny stocks issued to the public have a face value lower than five dollars. The issues are normally made by companies that are not only up and coming, but also those intending to raise their capital as well as increase their market presence. Thus, members of the public intending to invest in these kinds of shares should conduct a thorough research program. This will give them a clear understanding of the company’s profile, and present them with a safe way to invest in penny stocks. Through these stocks, an up and coming company can attain their target amount which can enable them attain growth.

 

Since the companies issuing penny stocks are still new to the market, it would be wise to look for relevant information about the companies and their business profile. This will give you an idea of whether or not to invest in a particular company’s stocks. After accessing the relevant confirmations and information, it will be possible to make an investment with them that will enable you be able to get the desired returns. Prior to investing in penny stocks, it is always recommended to be sure of a profit. Since you will be investing in shares of low face value, the gains may not be as large as those shares from companies that are well established.

 

Despite the small amount, there are similar risks involved. Therefore, selecting one that has good results with regard to investments in penny stocks is highly advisable. The market has several players who can offer help with regard to investing in these stocks. It is vital to approach either security investors or a reputable organization like Paradigm Capital Management that will see to it that your investment is made with the right company to prevent losses.

 

Conduct some research to get more information concerning the investors and how reputable they are in the market. After obtaining the required information regarding the investor or agency, you can get more information from them concerning companies that issue penny stocks. You also need to obtain the names of companies that already have a market presence. This will allow you to not only trust the company but also to invest with them the amount you intended.

 

You want to be a successful penny stock picker, so here is another piece of advice; use the internet. The internet has a good number of websites that supply necessary information about the required procedure for one to safely invest in stocks. To be on the safe side, Paradigm Capital Management experts advise you to check for the company’s listing with the government.

 

Before planning to invest in a particular company, be sure to have gathered all relevant information and advice. This will not only give you to an insider’s view regarding these stocks, but will also allow you to benefit from the investment you have made. Even though the benefit may be minimal, you will still be on the profitable side.

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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

The Fundamentals of Good Penny Stocks

You may be wondering what constitutes a penny stock. Some people are confused by the definition. Technically, penny stocks are any shares that trade outside of the normally regulated stock exchanges. So you won’t find these on the NYSE, the NASDAQ, or AMEX.

 

This may make you feel shaky, because there’s no set price at which these are trading. There can be many prices for a given stock at a point in time. Of course, that very lack of regulation can make them a wonderful buy if you get in at the right moment in time. That’s where the opportunity for a windfall comes in.

 

They are sometimes seen as volatile, but remember that volatility goes both ways. You can make it work for you. So if you have the money to purchase these penny stocks and the money and time available to hold them until the time is right, you might want to consider this kind of trading.

 

Of course, as in anything having to do with the stock market, luck plays a major role also. You do your research, buy and sell as your information and your intuition guides, and then rely on all of this coming together at the right moment.

 

One right moment for buying is when a company is just starting out. If you like what the company is doing in terms of its products, services, and management, you could invest when the price is very low. If you hold it for a while, you’ll find that your investment has paid off nicely over time.

 

When you’re deciding what to purchase, be aware that there are scams. Sometimes people in the know artificially raise the prices so that they can sell them at a high price. This negates the natural ability of the market to behave in a predictable way.

 

They call these schemes pump and dump, and you’ll have to do your research into a stock’s patterns to make sure that the one you’re considering isn’t part of such a thing.

 

Consult with our experts at Paradigm Capital Management if you want to learn more. We at Paradigm Capital Management 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: Paradigm Capital Management – Good Penny Stocks to Watch

Things to Look For in a Penny Stocks Recommendations Service

When you’re just starting out as a trader and trying to figure out the pink sheets stocks to trade, you’re likely to spend a lot of time online looking for the best penny stocks recommendations. Be very prudent about accepting anything that anyone has to say to you.

 

The problem is that some people just want to play you. Some professional traders keep fake blogs to convince people to buy a particular stock when they should be selling it and vice versa. It’s important to remember that this stock market is a game with winners and losers. The winners try all sorts of tricks to stay in the lead. Follow these four tips by our experts at Paradigm Capital Management to find the best penny stocks recommendations service.

 

  • Locate a community – if there’s a community of people posting on a blog, forum or twitter account related to the penny stocks recommendations service, chances are it’s legitimate. Communities gather around sites that provide proven money-making results.
  • Look for advice and explanations, not just a ticker symbol – Be wary of any stock picking service that doesn’t explain why a particular stock is the best. The best services teach as well as inform, so you can be aware of why you’re doing what they’re advising you to do.
  • Do some research – If you think a particular stock alert service is solid, do some research into any symbols the service provides. Spend a day watching it and see if you can figure out when you should have bought and when you should have sold, if at all, if you would have wanted to make a lot of money. If your research pans out, the place is generally legitimate.
  • Look for a current events section – The best pink sheet stocks recommendations service will always have a section on current events related to the hot stocks of the day. This is in keeping with the philosophy that it’s better to teach a man to fish than to give him one.

 

If you’re looking for the best pink sheet or micro stocks, you may be looking for a while before you start to make sense of what you see. In the mean time, of course, go with the stock advice from the best penny stocks recommendations service like Paradigm Capital Management.

 

Ultimately as a penny stock trader, you want to be able to look at the movement of any penny stock’s past couple days and determine whether it’s lucrative to invest in. But practice makes perfect.

Why You Should Only Invest a Small Amount in Penny Stock?

Penny stock picks are not for the faint hearted and even compared to other share market investments do have considerable risk. Therefore, it is important for you to only invest a small amount of money, and not to commit too much of your portfolio. Below are the suggestions made by our experts at Paradigm Capital Management you should follow when investing in penny stock picks.

 

  • Invest five to ten percent of your investment portfolio only: As we keep saying there is considerable risk, and as such you should not invest more than you can afford to lose. Yes you can make big gains, but even if you only invest a small amount of money you will still do very well.
  • Diversify your portfolio: Don’t just put your investments in penny stocks. If you do this you will be setting yourself up for failure…big time. Have some real estate investments, have some blue chip shares, and maybe even have some commodities as well. But don’t put everything you have in your penny stock picks!
  • Limit the amount to under $5000: Penny stock picks sometimes go belly up, and while it is not likely, it is not uncommon for the company you are investing in to go bust and no longer exist. Therefore, you could stand to lose all of the money you have invested. So again, use your head and don’t invest more than you can afford to lose.
  • Research, research and research: Don’t just look at the share prices, look at the company behind the shares. Are they stable, are they growing, are they are fly by night company? All of these are questions you need to answer before you should be willing to put your hard earned money into them. It is your money, and you want to make sure you have the best information available before you invest.
  • Be careful where you get your advice from: Make sure you receive your information from qualified and suitable sources. If you hear something from your neighbor always take it with a grain of salt. Their heart may be in the right place but they may not be qualified to provide you with good quality and timely information.
  • Read financial magazines: The more you know about the markets and the companies, the more likely you will be successful. Take the time to research the markets yourself and you will see a good improvement, and more importantly, you will learn when you shouldn’t invest.

 

If you follow the above tips by our experts at Paradigm Capital Management, you should be well on your way to investing smartly and safely in penny stocks.

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

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