Stocks For Beginners

Jonathan S. Walker

• Publisher: Readers Choice Publishing
• eBook ISBN: 9781393004882
• Topic: Business
• Subtopic: Bonds
• Index: Business

Become A Profitable And Consistent Investor Earning Solid Returns Each Year WithStocks For BeginnersToday!

Are you a beginner when it comes to investing in the stock market or putting money ininvestment instrumentssuch as options, futures, equities, or futures? Are you looking forsolid yearly returnswhileavoiding lossesthat could take an emotional toll on you?

What if I told you there was a way you could get started withminimal capitalwhilst growing your investment fund monthly to yearly, would that be of value to you?

The following chapters will discuss some of the many things that you are able to do in order to grow your investment and to start makingsix figuresin as little times as possbile. You will learn thebasics of picking out an investment asset classsuch as bonds, stock equities, andreal estate to name a few that suits yourinvestment style.

In"Stocks For Beginners" You Will Learn:

?The Right Type of Investment Instrument For Your Portfolio
How To Diversify ForRisk Management
What Penny Stocks Are
Picking TheRight Trading StrategyFor You
Getting Started With Your First Trade
TheBasics of Investing
The Different Investing Options
TheBest Investment Strategies
Investments With Blockchain
Pros and Cons of EachInvestment Instrument
***Bonus***

Understand The Risk and Benefits of Options Trading
Keys To Success In The Equities Market
Popular Sources of PAssive Income
Real Estate Returns
Cyclical Investments and Portfolio Rotation
Investing In Stocks, Bonds, and Annuities
Monitoring And Adjusting Your Portfolio
Common Mistakesto Avoid
Why Most Traders Lose Money and Fail
And so much more...

Pick up your copy of the bookright now by clicking theBUY NOWbutton at the top of this page!

To Your Success!

Part 1: Penny Stocks

Chapter 1: What are Penny Stocks?

Penny stocks are relatively simple, but there are a few tricks that you need to learn in order to make them work for your needs. They represent stocks that are going to have a low price, usually a price that is under a dollar, as well as a smaller market cap that is under $500 million. For the most part, when an investor is working with penny stocks, they are going to be traded off of the traditional exchanges, so you will not find them on the New York Stock Exchange or on the NASDAQ.

So why would you want to choose to work with penny stocks rather than another investment type? There are several reasons to use penny stocks, but they are often used in order to help a company procure the right capital so that the company can grow and become more powerful. Through this market, the company is able to build up the money that is needed so they can grow their business and when you pick the right company, they can make a strong investment for a low cost.

Penny stocks are going to be traded in order to benefit some of the smaller public companies. But if this company does well, and you purchased the stock over the counter before it entered the regular stock exchanges, you could get a great return on investment. Even if the company never makes it over to the regular stock exchange, many of these can still increase their profits and you can earn back on your investment.

Almost all of the penny stocks are going to be sold on over the counter exchanges. This is going to work because many of the larger exchanges are going to have stringent policies before a company can join them and trade. Most of the companies that are in penny stocks will come nowhere near reaching these stringent requirements, plus it costs a lot of money to trade on these exchanges, so it isn't possible for some smaller companies to make it work. Instead of trying to meet some of these requirements or come up with large amounts of money that they don't have, the companies are going to work with the penny stocks to get the funding they need. As the investor, you are able to capitalize on this and get some great stocks, often from some growing companies, for a low price.

As the investor, you need to remember that there will be some risk that comes with going with penny stocks. If you take the time to educate yourself and learn how to avoid some of the major mistakes that come with this investment, you are more likely to make a good income in the process, but keep in mind there are some risks and they are sometimes seen as speculative in nature, rather than as an investment.

Benefits of going with penny stocks

First, let’s take some time to look at the benefits of going with penny stocks. Penny stocks could be your next big break. They are a lot of fun to work with because there are a lot of companies who are out there and are looking to use penny stocks as a way to raise capital to grow and become big. If you pick out the right company, you could be one of the first people in on it, and that stock that you got for under a dollar will end up being worth a lot of money down the road if the company does grow.

That is one of the main benefits that come with investing is that there is the potential of making a huge return on investment. You need to make sure that you purchase a stock that is at a low price, which is easy to do in penny stocks, and make sure that it has a good business plan and will survive the market, just like you would with any other investment, and you will see results. Not all companies that are in penny stocks will make it to the big leagues, but many of them can still grow and you can make money from this process.

Many investors like to go with penny stocks because they are exciting and a lot of fun to work with. It is fun and can feel great, to start out with a little bit of money and then move up and see it grow. You may not make a ton of money at first, but penny stocks can help you to start with a small investment and get it to grow. If you want to start out your portfolio and you don't have a ton of money for it, penny stocks can be a great place to start.

The negatives of penny stocks

One of the first negatives that you should be aware of when you are working in penny stocks is that many of the companies on the market are not that good. There are some companies who are really good and just need to make a few tweaks or make a bit more profit before they are able to join the regular stock markets. But many of the companies that you will find in penny stocks didn't get onto the major stock exchanges because they were just bad. You need to learn how to tell the difference between the two if you would like to make an income here.

In addition, the penny stock market is not as reliable as the major stock markets. They are unreliable and they often don’t have regulations in place to determine which companies or transactions that go on with them. This doesn’t mean that all of the companies are bad on the penny stock market, but since there aren’t really a lot of regulations that are in place, many bad companies can sneak through, make up numbers, or hide information and it is really risky picking out the company you want to work with. You will need to be diligent and really do your research to make sure that you are picking out good companies that will earn you money over time.

Penny stocks are really interesting investments to make. They usually have stocks that come in under a dollar each, so they are a good choice for those who have limited money to invest with in the beginning. While you do need to be on guard against some of the bad companies that are able to get onto the penny stock exchange, there are still many great ones that are available that you can pick from and that will help you to make a good return on your investment!

Chapter 2: Picking the Right Trading Strategies

When it comes to working in penny stocks, or any other investment for that matter, one of the most important things that you will need to do is figure out the strategy that you want to use. The strategy is so important because it is going to determine which stocks you will purchase when you will purchase them and sell them, and what research you will do to get the results. There are many great strategies that are available and none of them are necessarily any better or worse than the others, but you will find that picking a strategy and sticking with it, rather than bouncing back and forth between a few, can make all the difference. Some of the best trading strategies that you can use when you want to trade in penny stocks include:

Scalping

This is often a popular strategy to go with because it is pretty simple to use and many beginners like this simplicity. With the idea of scalp trading, you are going to take advantage of some of the inefficiencies that are going on in the market with respect to the spread. The gap between the bid price and the asking price, which is known as the spread, can end up widening or narrowing rapidly throughout time, and even through the day and they are going to create some great selling and buying opportunities that will result in some quick profits.

To scalp, you will need to be good at watching the market and understanding the perfect time to purchase and sale. You can even look at a few markets and see if you are able to find the stocks of a company a little lower than the price of them on the other. You would then purchase the stock at the lower price before moving it over to the other market and selling it for the higher price that is demanded there. You can end up selling the stocks pretty quickly this way and while the profit may only be a little bit on each one, if you purchase quite a few stocks and do this many times, you can make a good profit.

Range trading

When things are going along as normal and all of the other things in the market are even, stocks are often going to trade inside of a set trading range each day. When you use range trading to help you to purchase and sell your penny stocks, you will try to purchase the stock when it is at the bottom of the range, and then when it gets to the top, you will want to sell it. To do this type of trading, you will want to make sure that the stocks have a consistent trading range each day so that you can make some good estimates.

So with this one, you are going to take a look at some of the history of the company, if it is available, and find out what places seem to be the high points of the stock and which ones seem to be the low points. There can be some variations of this each day, but mostly you will notice that the trend stays about the same. You will then take this information to help you make the right purchases on all of your stocks. You will be able to make a purchase of the stock when the market is at the low end of the range and then you can sell the stock when it goes back up before it goes down and you lose out again. This one will require you to spend some time looking through many graphs and charts to get the information, but it can be pretty straightforward and can make you a good profit.

Momentum trading

This is the trading option that you will go with if you are looking to go with some of the trends that are in the market to make a good profit. In basic terms, you are going to use momentum trading or trend trading to purchase a stock when it is trending up, but then you will sell the stock as soon as the trend starts to go back down. This one can be a little less risky compared to some of the others, but you have to constantly be watching the trends and the market to make sure that you get out before all of your investment is gone.

Real-time new trading.

Another option that you are able to go with when you are working on penny stocks is known as real time news trading. This is the one where you are going to have to spend some time reading or watching the news and looking for some clues as to how a market or a particular company is going to do. When you find that some good news is released, you will make the purchase, and then after that little punch up, you will sell the stock. It can also work to protect your investment because if you notice that some bad news is about to happen, you can sell the stocks without losing all the money, and then purchase them again when things settle down.

If you want to use this kind of trading strategy, you will want to make sure that you download a real-time news feed so that you are always getting information in. You also need to be able to understand what each piece of news can mean to the penny stocks that you are working with. You don't want to misunderstand what is going on and end up with selling a stock that was going up or losing out on a stock because you held onto it for too long.

When it comes to picking out the strategy that you want to use for your penny stocks, you will find that there is really no wrong answer. Each person is going to pick out a different strategy to help them out, and what works for one person is not going to work for you. Make sure to check out some of these strategies and then pick the one that works the best for you!

Table of contents

• Title Page
• Copyright Page
• Also By Jonathan S. Walker
• Stocks For Beginners
• Introduction
• Part 1: Penny Stocks | Chapter 1: What are Penny Stocks?
• Chapter 2: Picking the Right Trading Strategies
• Chapter 3: Getting Started with Your First Trade
• Part 2: Investors Ultimate Guide from Novice to Expert | Chapter 4: The Basics of Investing
• Chapter 5: The Different Investing Options
• Chapter 6: The Best Investment Strategies
• Sign up for Jonathan S. Walker's Mailing List
• Further Reading: Breakthrough Startups: Crush The Competition With Your Innovative Startup
• Also By Jonathan S. Walker