Criticism / Suggestions » esting in penny stocks pro

Investing in penny stocks provides traders with the opportunity to dramatically increase their profits Wholesale Nike Shoes Online , however, it also provides an equal opportunity to lose your trading capital quickly.


These 5 tips will help you lower the risk of one of the riskiest investment vehicles.


1. Penny Stocks are a penny for a reason.
While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker’s money for an IPO. This doesn’t make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.


2. Trading Volumes
Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today Wholesale Nike Shoes China , and doesn’t trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding “dead money”, where the only way of selling shares is to dump at the bid, which will put more selling pressure Wholesale Nike Basketball Shoes , resulting in an even lower sell price.


3. Does the company know how to make a profit?
While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?


If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital Wholesale Nike Running Shoes , and increase the odds of a much higher return.


4. Have an entry and exit plan – and stick to it.
Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you’re out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something Wholesale Nike Shoes , and whether you want to admit it or not, its usually best to listen.


If your plan was to sell at $0.12 and it jumps to $0.13, either take the 30% gain, or better still, place your stop at $0.12. Lock in your profits while not capping the upside potential.


5. How did you find out about the stock?
Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however Cheap Nike Shoes Online , there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.


Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time) Cheap Nike Shoes China , others in cash.


How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You’ll start to notice quickly if you have subscribed to a good newsletter or not.


One other tip I would offer to you is not to invest more than 20% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 20% grows, you’ll have more than enough money to make a healthy rate of return. Penny stocks are risky to begin with, why put your money more at risk?


Want to get started in Penny Stocks with someone who makes up to $50,000 a month in the market? Find out more at http:pennystocks.my-money-source All the best in your investing! The Penny Stock Expert Cheap Nike Basketball Shoes , David Green.

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BEIJING, May 24 (Xinhua) -- China's Finance Ministry Wednesday dismissed a decision by international rating agency Moody's to downgrade China's credit ratings.


The downgrade was based on the ""pro-cyclical"" rating approach which is ""inappropriate,"" the Ministry of Finance (MOF) said.


Moody's said that it had downgraded China's long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to stable from negative.


The rating agency attributed the decision to expectations that China's economy-wide leverage would increase further over the coming years, planned reform program would likely slow, but not prevent the rise in leverage, and sustained policy stimulus would cause rising debt across the economy.


""These viewpoints Cheap Nike Running Shoes , to some extent, overestimate the difficulties facing the Chinese economy and underestimate the capabilities of China to deepen supply-side structural reform and expand overall demand,"" the MOF said.


China's economy started strongly in 2017. Gross domestic product grew 6.9 percent in the first quarter, above the full-year target of 6.5 percent and the 6.8-percent growth in the fourth . Cheap Jerseys China Shop Cheap Shirts Cheap Shirts Cheap New Jerseys Wholesale Hoodie Wholesale NHL Hats Wholesale Collge Hoodie Wholesale Basketball Jerseys Wholesale Baseball Hoodie Wholesale Adidas NHL Hats