Tuesday, 20 August 2013

Let A Penny Stock Newsletter Inject New Life Into Your Portfolio

By Tara Daniels


Investing in the stock market is rightly popular because of its liquidity and good returns. Blue chips attract the most investment attention because they are regarded as secure, but the growth on such shares is often lower. Investors looking for higher returns could get good prospects from a penny stock newsletter

These shares provide the opportunity for explosive growth under the right circumstances, and they can respond very quickly to any positive company news. Unfortunately, the volumes traded are usually low, so they would not normally be considered by short term traders. The shortage of available shares also means that any movements due to changes in demand become exaggerated.

Like any other stock, the secret is to sell before the market starts a downtrend, as it will then become difficult to offload. Buyers for such stocks can become very hard to find in a hurry. Leave some upside for your buyers, and do not be greedy. Be satisfied with a good profit, as trying to squeeze out every last cent may see you leaving a sale too late.

It can be difficult to do all the necessary research and keep up with news which affects all the qualifying stocks, especially for people living in other countries. This is why it is useful to get help from specialists who have the time to do research on the companies concerned and are more knowledgeable about the market conditions and the chances that individual companies will succeed.

With the prices of such stocks being so affordable, it is quite easy to purchase relatively large numbers of these stocks. A relatively small rise in cents or dollars can therefore translate into a much larger percentage price rise. This means that the same amount of money invested could increase substantially more than is possible with more expensive shares.

It is best to invest only a portion of your total portfolio in such riskier holdings. On the other hand, they can add an extra zest to a portfolio in terms of its overall prospects for substantial growth. You should only risk as much as you can comfortably afford to lose, which should determine the level of risk you will accept. It is also best to spread your investment over a few of these stocks, to reduce risk and increase the chance of a meaningful gain.

While these are not good trading vehicles because of the thin market for them, they still deserve a place in a longer-term strategy. The company fundamentals are particularly important when evaluating these shares. Buying them with a view to waiting until any potential has been realized can be a rewarding strategy.

For those investors who would like to lift their portfolio growth above the average, a penny stock newsletter represents a great investment. Do some research on the Internet before you decide, as there are many and they are not all equally successful. You want one which has a great track record and is consistently ahead of the pack.




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