Investor Reach

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Stock Market Strategies When You’re Broke

First off, just because this is a tip for investing when you are broke, it doesn’t mean that being broke is ever going to be the ideal time for you to make a huge investment in the stock market. At the same time however, the notion that you cannot invest anything when you have a minimal amount of money isn’t true either. The reason for this is relatively simple and it’s because of something called cheap penny stocks.

Penny stocks, as you have already probably gathered from the name, are stocks which trade at less than $1. What that means is that you can actually own stocks of companies even without a huge amount of money and you can gain profit or revenue from those stocks, even if you don’t invest thousands into their stocks like you need to when it comes to other stock companies.

A lot of companies actually start off as penny stocks when they begin trading their stocks on the market. The reason is quite obvious, they don’t need as much immediate capital and at the same time, they obviously haven’t really made a stable name for themselves. The combination of these two factors allows investors like you, to actually make a profit at a much lower cost.

Of course, as with any type of stock, penny stocks do come with a risk. That risk however can be minimized the same way that you would if you were dealing with a large companies stocks. The financial problem faced by large companies is an indication that ultimately, you can’t always accurately predict stocks but at the same time, it doesn’t mean you don’t have some sort of fallback somewhere.

In the case of penny stocks, it still pays to be diligent when it comes to investing your money in the right company. One thing that you should pay particular attention to when investing in penny stocks is to see the current trend in their stocks and shares. The reason for this is generally that penny stocks are faster in terms of movement than regular stocks because of the price that which they are traded. Obviously, more people can by stocks which would cost a few cents each that be able to buy stocks which cost thousands of cents.

Another great advantage to going into penny stocks is that there is a much larger potential of making a huge return. The reason for this is actually quite simple, the stocks can be a bit more risky that regular stocks and as such, you can actually play off some of this risk. Any economist will tell you that the greatest risk will merit the greatest reward and although you shouldn’t be putting all of your money into penny stocks, some good investment in them can definitely boost your revenue exponentially.

At the end of the day penny stocks may or may not last a considerable amount of time but if you are after some good potential short term gain and keep telling yourself the phrase “I need money now” pretty often then this might just be the option for you

Stock Market Investing – How Money Is Made

When it comes to stock market investing there are quite a number of essential and important rules, trends and observations that need to be made. Regardless of whether you are a newbie to the world of trading or regardless of whether you are an expert, one of the most important aspects that you should understand when it comes to the stock market are the basics of how your market functions.

How Buyers and Sellers Make Money

A market by definition is a place where goods or services are traded. In other words you have a buyer and you have a seller. In relation to the stock market, the product which is being traded is stock. These stocks represent parts of company ownership. At the root of stock trading is the fact that some companies are more valuable than others. Let’s take Apple for example. Right now it’s pretty obvious that Apple is at the top of its game. As they improve in capability, continue to churn out more products which are snapped up by the market and improve their products, their stocks grow in value because you know that their stocks are going to be worth more and more down the line. In the case of Apple then, you would say that there is definitely a demand for their stocks.

If this is the case then it is only normal that the stocks which are sold on the market now go for a much higher price than they did, say ten years ago and this is an essential illustration of how traders make money. They essentially buy stocks when the prices are at a lower price. They look at potential; they look at capability and then take the risk of buying the stocks they can. After a period of time, the stocks are much more valuable and thus can be sold at a higher price, thus making the seller profit.

I Need Cash Now! – Is the Stock Market for Me?

Of course, the example above is an ideal one. Remember that not all companies become valuable as they grow but the art of choosing the right stocks to buy and sell is one that isn’t perfected. If your goal is to make money on the stock market then you obviously have to be in tune with how companies perform and how they plan to expand. If you are starting off however and find yourself saying “I need cash!”, then then perhaps what you want to be looking at are penny stocks.

Penny stocks are relatively more risky in that their dips and valleys in the trading cycle can be short and sudden. In some respects, this makes the market risky, however in other respects- it is an advantage if you want to make quicker money. Of course, this is a double edged sword as making money isn’t the same as sustaining it.

There are plenty of ways to make money as you can see but the important thing is to understand your market. In understanding your market, you can then make the decision as to what stock to buy and why.

Understanding Stock Market Concepts – Bullish Markets

Trading, just like any industry has its own share of jargon and phrases which you should be able to understand in order to be able to trade more effectively. If you were to read a business newspaper for example, chances are you wouldn’t understand many of the idioms and phrases used there unless you were actively using the terminology indicated. One of the concepts which is shared within trading and used a lot in the stock market is the term “bull market”.

Contrary to what the literal understanding of the phrase would mean, a bull market is in fact, not a market where bulls are traded. Instead, it is more of a description of how a bull reacts. If you have ever watched the television and seen a bull fight, you will know that bulls generally charge at their opponents and toss them up with a movement of their horns. This is largely where the term “bull market” comes from.

In a bullish market, the expectation is that there will be an upward trend in the price of a particular stock or share. This rise can happen for a variety of reasons. In general you are talking about the whole stock market when you talk about a bullish market but that does not mean it is necessarily caused by just on overall factor. Let’s look at two examples of how one factor can affect the market and turn it bullish and then let’s take another example that creates a domino effect to turn the market bullish.

The first example deals with government laws. Let’s say, the U.S government decides to pass a bill lowering corporate taxes for all companies that have stocks in the stock market and let’s say there is a huge increase in government funding to support businesses. This would be beneficial to all companies in the stock market in general which would result in a rise in stock prices on the average and therefore better times for the market.

The second example is a little different. Let’s say Company A trades stocks on the stock market and that they serve a variety of industries. Now let’s say that the company decides to provide Open Source solutions to its many customers at a fraction of the price because they want to increase their customer base. As it turns out, they provide technology to a huge number of companies that are in the stock market. Because of their change, a number of other technology companies follow and they start to provide better services as well. The other companies within the market are then able to provide better and more efficient services to their consumers and the value of their stocks rise. In this case the market would be in a bullish state because their prices increase.

As you can see, a number of things can cause a bullish market and they are not limited to the examples above. Whether you buy or sell depends on a strategy. For example you can buy and wait for prices to reach their peak and then sell our stocks or you can choose to not buy and then sell your stocks at their peak price.