Investing in penny stocks is all about defining the rules and playing by them as all of the big time investors have before you.Big time stock traders and investors have played by the rules and started out small, or even very small, swearing by a defined set of rules that basically state they will not continue any cycle of failing that loses them money, over and over. Losing money instead of learning these rules is something that is unacceptable and potentially crippling to a new investor - even though your brain is trying to tell you that "Heck, it doesn't matter, they're only Penny Stocks after all!" (Damn you brain!!) However, follow a few simple rules and you should be ahead of the penny stock investing game. Number One and MOST important - Never, ever, under any circumstance borrow money to invest; this is possibly the biggest rule to stay out of investment trouble.
Yes, I know! You believe you have the advantage with some inside info that might help you build a big portfolio in almost no time! So have lots of others before you - and they were all WRONG! Please, don't jump on a tale with the sole answer being borrowing cash. If you begin to lose cash on the exchange, then the debt repayment will come at once out of your pocket. If this occurs, trust me - you're now in big difficulty.
Regardless of whether you start to earn money then you'll be spending it to pay back the loan instead of saving or reinvesting the funds. This cash will stand by and plague you as you continue to try and get by off the stocks you are trading.
Always save up to be able to invest as a rule of thumb, debt will be chased until you finally catch up by being farther behind than you were to begin with. DON'T DO IT! Investing in profitable companies is a big rule to keep in mind when investing in penny stocks.
I'm of the opinion that reads and sounds deeply mad and a waste of breath but trust me - occasionally folks simply invest in a company without determining if the company is profitable or not. Either they like the name itself - or the product / service the company offers - or maybe they know a cousin of the chief of the typing pool and reckon it's keeping it in the family! Do not be the sucker that buys a stock and then tunes in to the TV or logs on to the web to see that its quarterly revenues are down and its money per share is dropping like a four-ton stone of the Empire State building - terribly hard and awfully fast ). Find info on the way to find a moneymaking company, it is generally available on the web, and then identify which company to make an investment in.
Guides for how to evaluate companies, their accounts declarations and markets are readily available. Also, do all of your homework, research and analysis before you buy a stock that is not garnering any type of attention. One of the most important things for investors to look at is volume, anything less than one million shares per day is not worth touching. It is a pointless task to purchase a stock that is trading 9,000 shares a day because it will be nearly impossible to sell once you are ready to do so. Stocks need attention to have liquidity, which basically means that for it to sell it must have value. Don't be stuck with a rising stock that you will be unable to sell later.
Don't simply thinkof all of the wonderful profit you will generate - consider the workings of actually having the ability to realize that profit. After all - so what if you have made $1.20 per share in a quarter - if you can not actually sell them! Oh - and in the event you forget! DON'T BORROW Money FOR INVESTING!!
Yes, I know! You believe you have the advantage with some inside info that might help you build a big portfolio in almost no time! So have lots of others before you - and they were all WRONG! Please, don't jump on a tale with the sole answer being borrowing cash. If you begin to lose cash on the exchange, then the debt repayment will come at once out of your pocket. If this occurs, trust me - you're now in big difficulty.
Regardless of whether you start to earn money then you'll be spending it to pay back the loan instead of saving or reinvesting the funds. This cash will stand by and plague you as you continue to try and get by off the stocks you are trading.
Always save up to be able to invest as a rule of thumb, debt will be chased until you finally catch up by being farther behind than you were to begin with. DON'T DO IT! Investing in profitable companies is a big rule to keep in mind when investing in penny stocks.
I'm of the opinion that reads and sounds deeply mad and a waste of breath but trust me - occasionally folks simply invest in a company without determining if the company is profitable or not. Either they like the name itself - or the product / service the company offers - or maybe they know a cousin of the chief of the typing pool and reckon it's keeping it in the family! Do not be the sucker that buys a stock and then tunes in to the TV or logs on to the web to see that its quarterly revenues are down and its money per share is dropping like a four-ton stone of the Empire State building - terribly hard and awfully fast ). Find info on the way to find a moneymaking company, it is generally available on the web, and then identify which company to make an investment in.
Guides for how to evaluate companies, their accounts declarations and markets are readily available. Also, do all of your homework, research and analysis before you buy a stock that is not garnering any type of attention. One of the most important things for investors to look at is volume, anything less than one million shares per day is not worth touching. It is a pointless task to purchase a stock that is trading 9,000 shares a day because it will be nearly impossible to sell once you are ready to do so. Stocks need attention to have liquidity, which basically means that for it to sell it must have value. Don't be stuck with a rising stock that you will be unable to sell later.
Don't simply thinkof all of the wonderful profit you will generate - consider the workings of actually having the ability to realize that profit. After all - so what if you have made $1.20 per share in a quarter - if you can not actually sell them! Oh - and in the event you forget! DON'T BORROW Money FOR INVESTING!!
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