All about Penny Stocks

Penny stocks are very low-cost stocks that one can buy and also sell for more than one dollar for every share. This indicates that they are only sold and bought in large quantities. If you are new in this, this article will help you a lot. Read it carefully and know everything you could have wanted to know about penny sockets.

 

Bargain prices

Some companies that are just beginning may take a lot of time to reach the high share prices. One of the most interesting things about this is that as an investor with limited capital, you will be able to buy huge volumes of shares with low price.

 

Where to purchase penny stocks

They are normally traded on over the counter markets. Such markets are less regulated and less formal as well. Some of them are also found on the regular exchanges.

 

Regulation

Companies listing them are normally subjected to various regulations as well as financial reporting rules. If there are companies that need to be listed on the OTCBB, then they must make sure that they should ensure their securities are quoted.

Advantages

 

Future winners

With enough research, the chances are high that you will be able to come across a number of companies that are trading in this penny section. These companies tend to love in shadows, and apart from that, they have what it takes to be the future winners. This involves the skilled employees, the continuously increasing markets, financial positions as well as the innovative ideas that are meant to create disruptive services as well as products that can help shake the big companies in the industry.

 

Expand the small investments

You may be a fresh graduate and may have just gotten a job. Your stress would be how you can clear your student loan, and that is when the thought of investing in stocks can come in your mind. And by investing in the penny, you may be able to get a lot of return to repay your student loan. With $500, you will be able to purchase several shares, but if you choose to go to a bigger company, you will only get four shares.

Their per-share price is extremely low; therefore, you don’t need to have large capital so that you can begin the investment.

It is very easy to buy the stocks, and this is because they are very common and they are also easily available for people to buy. Since the stocks are offered at low prices, investors can easily buy several stocks. With this, the options of the investors are also expanded; they can, therefore, invest in as many stocks as they want at a time. If you can wisely manage your stocks, you will be able to generate as many profits as possible.

These stocks also move up at faster intervals if you are looking for a way to make money on a short time, you will be able to make your dream come true with this.

These stocks are cheap; this means that as an investor, you have the opportunity to purchase huge holdings with the little money you have.

With penny stocks, you can get rich quickly.

 

Disadvantages

Scam

Because it is low priced, one can easily use it to scam you. Scanners find it an easy tool to make you fish out your money. Many are the times when the promoter will make a lot of money, while the buyer always turns out to be the loser.

 

Thin traded

Compared to bigger companies which tend to sell millions of shares every day, these stocks are thinly traded. Some may see up to a thousand shares every day while the other people may also see less than that.

 

Risky

They can be easily predicted, and you can easily predict where their prices will move in the next financial year. In addition to that, they are also stagnant and can only increase if they know that the company is going to make great breakthroughs.

They cannot be easily liquidated

If you may want to get out of it and think of selling it, you may find it difficult to get a suitable person that can purchase the stocks from you. Selling large quantities may also be a problem during the normal business days.

 

You can easily lose the investment

This can happen, especially if the company that has issued the stock is near to bankruptcy, and this means that the chances that you will lose your investment are greatly increased. And if the stocks are also issued by new companies, you may also lose the money, which is if your prices fail to go up.

 

You can also lose the stocks

This is very possible because these stocks are usually traded by amateurs that are new in the stock trading business. This is because they are new in the trading business. These stocks don’t arise naturally; there are some times they rise in prices while sometimes they remain constant.

As a small-time investor, you may find the stock market very frustrating, and you even end up being jealous of the larger investors.

With all the information provided above, you are now aware of things you would have wanted to know about these stocks. Investing in penny stocks should be basically your personal decision; this is because it has its advantages and disadvantages. These stocks can come with a lot of pros and cons; this means that getting yourself into this trade requires a lot of hard work as well. But again, this business is not for everyone, for some people, it will really do them good, but for some people, it won’t work for them.

For naive traders, this is one thing they should never involve themselves with; they have to be very cautious when thinking of getting involved with these stocks. You should, therefore, be aware of investing in these stocks, and apart from that, you should also acquaint yourself with its benefits if it is done in the right way.

The Best Ways to Trade Penny Stocks to Retire Early

If you desire to sell stocks but you do not have a lot of money which you can risk, then you can start with penny stocks. It’s an easier activity which can be fun and can enable you to make a lot of profits. There are so many ways on how you can sell penny stocks to retire early since you would make a lot of money, some of them are:

 

Learn how to avoid dangers

Before you start selling the penny stocks you should learn how you can avoid many of the dangers which are involved so that you cannot all your capital. You can succeed in this area by understanding the stock market and the underlying companies. You can also research on the internet on how to trade penny stocks and retire early,

Do your homework

It’s good that you get tips from other successful people, however, you should never buy penny stocks because of the advice that you received. Just do your own homework since no one will tell you when you are supposed to sell them. While you are doing your homework ask yourself the following questions.

Choose a winning strategy

One thing which can make you make loses is when you keep jumping from one trading strategy to another. In case you wish to get a lot of profits then you should choose a good plan and be able to stick to it.

Be careful of short selling

Short selling refers to when you borrow shares from a broker so that you can sell them. So many people so that in future when the prices go down in future, they can buy back the shares and return to the broker. When you short sell, you will be betting that the price will decline, however it can be a bad idea. This is because many brokers doe charge extra fees for short selling penny stocks.

Get the best broker

A good broker can assist you when you are trading the penny stocks. He/she can execute the penny stock trades without charging you a lot of fees. Also, he/she can offer various penny stock trading tools such as portfolio management tools and charts.

You should not allow your emotions to control you

The penny stock market does not have emotions, therefore you should also not have emotions such as fear or greed. Successful penny traders can control their emotions and move on. If you encounter loses one day you should not be discouraged since you can lose a lot of money by being emotional.

Never listen to company management

If this dubious world, you should not believe the information that you hear from companies. This is because many of these companies are trying to increase their penny stock to stay in business and make money. Therefore you cannot get an accurate date or reliable business model.

Focus on penny stocks which have high volume

When you enter the market you should stick with penny stocks which trade more than 100,000 shares in a day. Trading in stocks which have a low volume you can achieve your target easily of getting money and retiring early.

Do not trade large positions

You should be careful with position sizing since experts advice that you should not trade more than 10 % of the daily volume of your stock. Also, limit the size of your shares so that you can sell your stock faster.

Use fundamental analysis to reach your target

Many people when they are trading penny stocks they use technical analysis and forget the fundamental analysis which is also important. Fundamental analysis involves the analysis of the financial ratios, financial statements and market of the company to predict the stock movement

Good Projected and Current Profitability

When selecting stocks, there is a necessity of considering the financial fundamentals of a company, including cash flow, operating margins, and earnings. All these different factors will assist in the painting of a company’s reasonable picture and the possible profits both in the near and also in the long-term. On the side of the earnings, investors need to be considering thee earnings stability and the process in which they are trending. Besides, the margins operating at a higher rate will be far much favorable compared to low rating margins regarding measuring on how the company is running efficiently. As a result, there is a necessity of reviewing the figures of cash flow, in particular, the cash flow per given share.

4 Ways of Budgeting Your Home Like A Business

Are you always falling behind in your bills?

You can’t find any money after payday?

You’ve thought about using your credit cards or taking out a loan just to keep food on the table?

Do you want to learn how to start budgeting your home like a business?

This article can help you then to get you into the mindset of thinking of running personal finance affairs and your home like a business.

If you do that and run your home or personal finances like a corporation does. Your life will become much easier and you will find money and resources you never knew you had.

 You say you don’t know how to do those things. Great! Then you will learn some new skills along the way. 

I will offer up a simple solution and 3 optional plans A, B, and C you can follow if you so choose. Each will do the job with varying degrees of sophistication and costs.

You need a model to work off

 The simplest way to run a household or a business is to have a model to work from. To most people that means a spreadsheet.

You can get many templates to do this from the internet like:

http://search.tb.ask.com/search/GGmain.jhtml?searchfor=Budget+Templates&st=kwd&ptb=B0C0ECB1-B2AD-4936-9982-795046EA24C5&n=780c1eb4&ind=2014060212&p2=^AIC^xdm069^YYA^us&si=CMmClP2N2b4CFQVqfgod2QoAcw

You can then do it the way millions of other people are doing their finances. You could also do it with a ledger, which is the way it has been done since Dickens’s day in “A Christmas Carol.”

I prefer a third alternative and that is to use multiple notebooks I call:

Plan A: The Economy Approach

  • Notebook 1 – General Ledger – Money in Money out.
  • Notebook 2 – Home Inventory – Items – Value.
  • Notebook 3 – Code #s to define your activities in your life and home.
  • Order book – Keep track of exactly where all the money is going by order #.
  • Notebook 4 – Keep Track of your time.In the Business world, this would be called 100% activity reporting.

    You are forced to:

  • Inventory your Assets and Codify your activities.
  • You discover where your money and resources are going and what you really have available.
  • By tracking your time you find the time that you are wasting. and thus allows you to budget and conserve it.
  • Time lost can never be replaced.At first, it will be awkward and your family will not be happy with it or you.

    But, stick with it and it will become automatic.
    You will then start to discover where things can be cut and reallocated to save time and money.

Plan B: A Simpler Method

Plan B would be considered the midsize version. It has more options, is simpler, and has absolutely everything you need.

It’s called Business in a Box. Yes, I know you are working on a home budget. But, a home is a business and so is your life and job as well. After 2008, everything has changed and it is time for you to change to compete in a tougher market economy.

Business is a box of 1300 formatted forms that are used to start a business. One of the first forms is a home budget all ready for you to use and fill in. In fact, in the older version I own, I used to actually run a business and I only used four of the forms under General Administration. This package will get you into business habits that run a successful home as well as a business.
Here it is for you to look at:
http://www.business-in-a-box.com/fr/docs/?q=document&a=buisiness-in-a-box&s=google&c=frtop&gclid=CIeC3rzm6b4CFQhqfgodRG0Akg

But, there of course is Plan C to consider.

Plan C: The Full Sized Option

My Ultimate Solution to running a home budgeting was to automate everything and here is how I did it.

I had my boss way back when I ordered a copy of QuickBooks Pro and I created a multi-million dollar computer network for her using it to plan, budget and order hundreds of servers and support systems.

I have since bought and used it for my home and personal consulting business since 1996.

I mean Pro not the checkbook or any of the cutdown stuff. If you are going to run a professional business or a home your can’t skimp. Here it is:

The neat thing is you can download it for free and play with it to see if everything I am going to tell you next is crazy or not.

When it comes up, it will ask you for your name and business name etc…

What you want to do is select a service business with the product option. You will get a bewildering number but keep those two options in mind.

This gives you the ability to enter services and products into an inventory.

Now you have options to fill in budget information, which is then indexed and codified for you. (See simpler already). It now also will maintain your banking and inventory of household goods and activities.

This is why I said choose both options. You now have an automated system that runs your home just like a company.

House repairs become Job proposals and job orders with estimates that print out. You now know how much a new pool will cost out, as it becomes a job order. So planning becomes a snap.

Time tracking becomes automated as well. You will start to see where you could again reallocate your time to get things down and not have to rob Peter to pay Paul.

We used to call that the 7Ps. Look it up on the internet. http://en.wikipedia.org/wiki/7_Ps_(military_adage) It is just as true now as when I was serving my country.

You now have Plans A, B, C that can handle any Home budgeting need you will ever have to face.

Your home will start to stabilize and if you should desire it, you could quite easily explore actually running a home based business, as you will already have developed many of the skills needed by running your home like a business.

I would call that an education that is worth the price and a Win-Win for you and your family.

Run your home like a business, you will have more money, free time and peace of mind knowing that you are doing the necessary things to guide your home safely and have it survive in these uncertain waters of the 2nd decade of the 21st century.

Your home will start to stabilize and if you should desire it you could quite easily explore actually running a home based business as you will already have developed many of the skills by running your home like a business.

I would call that an education that is worth the price and a Win-Win for you and your family.

How to Make Money Online

Making money online is possible. Several people have invested online and it has paid off. You need to look for the most effective ways to invest online and you will start making money. Nowadays it is necessary to look for ways you can make extra money. Having a passive income can be a great way for you to improve your income and start paying bills. Many people have looked for ways they can make money online and they have turned passive income into their main sources of income. Below we are going to explain to you some of the ways you can invest online and start making money easily.

Ways you can make real money online.

 

1. Online surveys

There are several online survey platforms where you can be signed up and start making money by filling online surveys. Some of the ways you can start making money online through surveys include signing up for online survey platforms such as life points, Toluna, OnePoll, populous live, opinion outpost, Yougov among others. The online survey platforms are free to sign up. You are welcomed to sign up free of charge and start making money. You can sign up for the online platforms and you will start making extra money by dedicating your time to fill the online surveys.

2. Online market trading

People trade online and they end up making a lot of money. It may require you to invest some money, but it will pay off in the long run. For instance, you can sign up for stock investing platforms such as eToro.com. The online survey platform is free to sign up but you will start making money through a platform where you will be guided. To make a lot of money trading stocks online, you need to research and have some experience. You can start by investing a small amount then grow with time. People have made a lot of money by investing in stock trading online.

3. Start a website

There are several ways you can earn money through running a website. You will have to sign up to a web hosting platform such as Bluehost then invest in search engine optimization. Running a website requires you to choose a niche then focus on SEO. If your website can rank high in a given keyword, then you can earn through affiliate marketing, Google AdSense among other ways. There are several ways you can earn through running a successful website. It is upon you to choose the right niche then focus on such a website and it will be possible for you to earn a lot of money in the process. If you can invest in the right niche, then it is possible to make a lot of money through running a website. You can even sell the website and make a lot of money in the process.

4. Reviewing websites and apps for cash

It is possible to make a lot of money through reviewing websites and apps. You can sign up at UserTesting.com and start making money. The platform allows you to review websites and apps from where you will get paid. They pay via PayPal making it easy for you to enjoy making money from the comfort of your home. People looking forward to making a lot of money through investing their time to review the work of other people can end up making a lot of money in the process.

5. Publish a Kindle eBook

Are you talented in writing? There are several topics out there you can choose to cover and write an eBook. Even if you do not have talent in writing. You can hire someone to write for you an eBook and publish it on the kindle store. With time, people will read the book and offer positive reviews. Other people will then buy it and read it. It will cost people few dollars to download your eBook but you will get money in the long run because within a year, you can get over a thousand people reading your eBook. Many people have made good money after they decided to invest their money in publishing eBooks.

6. Affiliate marketing

You may have heard about affiliate marketing. It is possible to make money through affiliate marketing. You will have to start a website then create affiliate links. There are several affiliate programs online. To convert and earn a decent commission, you need to sign up for affiliate programs where you can get targeted traffic on your site. The best way to go about affiliate marketing involves identifying a program then create content that relates to the given niche. There are many people out there who have invested in affiliate marketing and it has earned them good money online.

7. Gigs on Fiverr

You can sell virtually anything on Fiverr. The program works in such a way you will sign up and start selling services where you are knowledgeable. For instance, you can solve coding problems for people and they will pay you. The process is easy, sign up at fiverr.com and describe services you can offer. People from all over the world will hire you and you will start making good money in the process.

8. Buy and sell domain names

You can end up making a lot of money if you can start selling domain names online. A platform such as Sedo.com allows you to list domain names and sell them to people. There are people out there who have money and they would like to invest in domains that have value. You will have to search for the domains and locate those that have value. After you locate them, you can then proceed to list them online. Several platforms list them. With time, you can get buyers and they will offer you good cash.

9. Tutoring online

Do you have the knowledge you can share with people, you can sign up for tutoring services online and teach other people to get money. A program such as Udemy allows you to create a program where you can teach other people online. People are seeking knowledge and you can make money by offering your classes online.
There are several ways you can make money online. Other ways you can make money include Selling your photos, YouTube videos, Google AdSense, Freelance Writing among others.