Category: Beginner Level Trading

crypto, Cryptocurrency Owners Doubled in One Year
Beginner Level Trading

Crypto Trading Tricks and Tips That Everyone Should Know

Every day we hear bits of information on cryptocurrencies. Whether it’s your cousin who read it somewhere or articles you find scattered online it seems like the perfect time to invest. But maybe know nothing

highest prices stocks
Beginner Level Trading

The highest prices stocks in the world

We all know that stocks are an indicator of companies’ market value. However, the price of a share of stock also depends on the number of shares outstanding. Some stocks are high if the company

LUPA stocks
Beginner Level Trading

What are LUPA stocks?

LUPA stocks are a name for four companies. They were created into the mobile app generation and have become part of the modern century consumer economy. In fact, they often fall under the name PAUL

money saving
Beginner Level Trading

How to save Money Effectively?

Undoubtedly, take the income, the money we have earned is enjoyable. However, Spent all cash in a month and purchase whatever you want is more comfortable than making. As reported by Northwestern Mutual’s 2019 Planning

What is the penny stock? A Penny stock mostly refers to the small company stock that trades for less than $5 per share. However, some penny stocks trade on large exchanges such as the NYSE (New York Stock Exchange), most trade via OTC (over the counter) transactions, or through the privately-owned OTC Markets Group. It's important to mention that small companies and startups usually issue stock to increase capital to boost the business. Though the process is long, issuing stock is often one of the swiftest and most productive techniques for a startup company to obtain capital. penny stock is created through an initial public offering or IPO Like any other publicly traded stock, a penny stock is created through an initial public offering or IPO. Significantly, to be listed on the OTCBB, the corporation must first file a registration application. Except for that, the company must also check state securities rules in the locations it plans to sell the stock. When it is approved, the company may start the process of linking orders from investors. Finally, the company can apply to have the stock listed on a more extensive exchange or trade on the over-the-counter market or OTC. Any stocks exchanged for less than one dollar per share were viewed as Penny stocks in the past. The U.S. Securities and Exchange Commission (SEC) has changed the definition to include all shares trading under five dollars. The U.S. Securities and Exchange Commission is an independent federal government agency liable for preserving investors as they keep the securities markets' fair and orderly functioning. Besides that, Penny stocks are often associated with small companies and trade infrequently, implying they lack liquidity or ready customers in the marketplace. Therefore, it is not surprising that investors may find it difficult to sell stock since there may not be any customers at that time. Because of the weak liquidity, investors might have trouble finding a price that correctly reflects the market. Penny stocks are generally recognized as highly speculative. Investors could lose a substantial amount or all of their investment. there is a possibility that investors lose their investment Penny stocks offered on the marketplace are often developing companies with limited cash and resources. Since these are small companies, penny stocks are most receivable for investors with a high-risk tolerance. Penny stocks have a higher volatility level. Therefore, there is a possibility that investors lose their whole investment on a penny stock or more than their investment if they purchase on margin. Purchasing on margin suggests the investor borrowed funds from a bank or broker to buy the shares. As investing in penny stocks are risky, investors should take particular precautions. For example, before joining a trade, an investor should have a stop-loss order predetermined and know what rate level to exit if the market goes opposite the expected direction. Stop-Loss orders are instructions set with the broker, which set a price limit that will trigger the securities' automatic sale once reached. Penny stocks can indeed have explosive moves. However, it is essential to have realistic expectations whereby investors know that penny stocks are high-risk investments with low trading volumes. Why is it risky? As we already mentioned, While there can be substantial gains in trading penny stocks, there are also equal risks of losing a substantial investment volume in a short period. Lack of information available to the public can be one of the that makes Penny stocks risky. It's essential with any strong investment strategy to have sufficient information to make a decision. For penny stocks, information is much harder to find as compared to well-established companies. Many of the companies considered to be penny stocks could be recently formed, and some could be on the edge of bankruptcy. These companies will generally have weak track records or no track record at all. As you can imagine, this shortage of historical information makes it tough to determine a stock's potential.
Beginner Level Trading

What is the Penny Stock?

A Penny stock mostly refers to the small company stock that trades for less than $5 per share. However, some Penny stocks trade on large exchanges such as the NYSE (New York Stock Exchange). Most

The world's first coin was born 28 centuries ago
Beginner Level Trading

The World’s First Coin was Born 28 Centuries Ago

The world’s first coin was born in Asia Minor, in Lydia, present-day Turkey, in the 7th century BC. It was made of a naturally occurring alloy of gold and silver known as Electrum. Since then,

Invest in Oil industry
Beginner Level Trading

How to invest in the oil industry with little money?

The N1 most traded commodity globally, oil continues to be one of the economy’s main drivers. If you are considering investing in oil, you are not alone. The good thing about you can invest in

Market movements are not random
Beginner Level Trading

Market Movements are Not Random

Financial markets are controlled by organized, professional groups that own large amounts of money. These groups act in a coordinated manner, handle a lot of information, and are made up of market makers, strong hands,