Finance Tips

I can answer this question from my own personal experience with trading penny stocks as well as other stocks for many years (and yes, to cut to the chase, I have made far more money with penny stocks than I ever have with other stocks).

My first experience with investing in the stock market was with mutual funds. I listened to the wrong broker and bought into 2 mutual funds that were both tech heavy during the infamous tech bubble. At first, I saw tremendous gains. I was on cloud 9 every time I checked the status of the funds. However, when the tech stock bubble burst, I barely got out in time and I felt lucky to break even. I considered that experience a good life lesson but it soured me against the stock market and I stayed away from stock investing for quite a while.

I was struck by the stock market bug again when a good friend of mine was able to buy a new car and a really nice condo with the profit he had made in the stock market. However, I decided this time around I would do my own homework and skip the broker. I started out slowly and incrementally invested more money as I learned the ropes. Overall, I did quite well as I more than doubled my money trading on the NASDEQ and the NYSE. Still though, my profits were certainly nothing to write home about.

For years, I avoided penny stocks even though I was quite aware they had far more upside and there was the potential to make way more money. I thought penny stocks were too risky (sometimes it just takes a while to learn). I also thought it would require too much research and time to make sensible trades.

Over the years of trading, I encountered many people who had literally made a fortune over a short amount of time trading penny stocks. I was on the verge of trying it so many times I can’t count them all but I always resisted the temptation until I REALLY needed the money.

I wanted to start a non-profit. In fact, it was more than just wanting to, I saw a real need for it as I volunteer in the community and see first hand the dire need. Homeless children who can’t get proper medical care or a proper diet – and who are sometimes dealing with dysfunctional parents. It is very sad. However, I didn’t have as much cash reserves as I have now and I simply didn’t feel it was prudent to use my own savings to start the non-profit. I couldn’t seem to raise enough money even though it was a really good cause. Times are hard and charitable donations have waned considerably.

About this same time, a friend of mine made a bundle on a penny stock trade. The thought occurred to me that I could take a small amount of my own money and use it as “seed money” and try to raise money for the non-profit by trading penny stocks. I told all my friends what I was doing and they were very encouraging and very willing to share their trading secrets to help me out since it was for such a good cause. Bottomline, I got a crash course in the quickest and best ways to make money trading penny stocks.

I am very happy to report that I made MORE than enough to start the non-profit and I started it out with a much more generous cash infusion than I had originally envisioned. We have been able to do amazing things for homeless families.

I made so much more money selling penny stocks than I ever had selling other stocks, I decided to switch most of my trading effort to penny stocks. My personal lifestyle has improved significantly.

Now, I want to make sure to tell you that one of the keys to making money with penny stocks is to subscribe to a stock pick service where an expert will send you their stock picks and you make your trades based on these recommendations. This eliminates the need for spending lots of time doing research. Good research in this penny stock field, the kind that can make you serious money takes A LOT of time. Make sure you get picks from someone with a proven track record and TEST their recommendations in a demo account BEFORE you use real money.

Stock markets world over are considered to be the best earner of the returns on the money. That said not everybody who invests in the stock markets becomes rich like Warren Buffet . However millions of people have become rich to some extent by the stock markets or at least they have earned above average returns on the money they invested.

Next is the issue of getting your feet wet in the stock markets before you take the plunge into the choppy waters of the stock markets. The best advice they have given on the stock markets is that it is not for the faint hearted. Also, the other advice is that stock markets carry more risk than any other type of investments but as they say higher the risk higher the gain. If you need to learn about the functioning of the stock markets then your best bet is to actually trade yourself. Your next step should be to open up an account at either an on-line trading company or brokerages or go to a full service broker which can guide through the whole investment process.

If want to learn the stock market without the hassles opening up a brokerage account then your best bet is to buy a stock market simulator software or a stock market basics learning DVD which can teach a few basics about the stock market without investing in the stock market.

Another factor to consider while learning the stock market is that you have to be very cautious in the early stages so as to learn the basics and not make any big gambles on the market. Those gambles and making huge bets that you hear people made and got huge amounts of profits will come later once you have got perfection in the art of picking the right stocks.

Do you want to make some extra money? Well, who does not? Unless you are one of those fortunate blokes who are born with silver spoons thrust in to their mouths and are sure to inherit a fully loaded diamond encrusted wallet when they come of age, you are sure to wonder on how to make your pockets bulge a tad bit more. There are many ways by which you can make some extra cash, but it would be advisable (for your own good) to stick to the methods that are not frowned upon buy the general masses. Thus the point is which approach to opt for. In my opinion (which is worth its weight in gold) the stock investments market is the safest bet.

Investing in the stock investments market has a lot of advantages. But there are a few drawbacks that you should be made aware of as well. Most people would tell you that investing in the stock market could be extremely risky. But let me ask you, what is wrong with a little bit of risk, if it brings large financial gains with it? With a little bit of calculated risk and good luck thrown in, you could make huge financial gains in the stock market for yourself.

Owing to the popularity of the stock investments polices among the general masses, numerous finance based companies have begun offering their customers stock investments policies as part of their various services. As a result you, as an interested customer are offered with a wide multitude of options in the stock market. Although, this is a major advantage on the one hand, it might also prove to be the cause of all your problems on the other hand. The broad range of choices could contribute in somewhat confusing you to a very large extent. This in turn, might give rise to major financial problems to you. Thus it is essential that you tread carefully in the investment market field.

The internet acts as an answer to all your prayers in such a situation of mental, emotional and financial stress. The internet has long been known for its informative qualities, but did you ever imagine that this piece of technology could get you all the information you desire with just a click of the button? Most people take the functions of the internet for granted. They comfortably assume that the internet is useful only as a form of entertainment and gives useful information on some tit-bits. What they fail to realize that the internet, holds within itself, all imaginable types of information. All you need to do is type the appropriate words on any search engine and voila! You are offered with a long list of interactive websites that provide you with a wealth of information. The same is also true in case of the stock investments market.

I hope every one is aware of the Wall Street ‘bail out’ being proposed. Here are some facts that are not widely spread by the media.

1) This bail out is for losses that MAY occur, but have not yet happened.

2) Much of the one point three trillion dollars ($1,300,000,000,000) proposed is to pay back foreign countries, i.e. Saudi Arabia – at least one hundred billion ($100,000,000,000+) that Saudi Arabia invested in Wall Street. Some other countries the tax payers are going to reimburse for investing in Wall Street are: China and Switzerland. I am sure there are other countries this administration wants to reimburse but so far the fact are very sketchy. We do know that this administration is saying they will handle the money and want no strings attached, such as accounting for where the money goes. President Bush stated he will veto any bill passed if there are any conditions.

The one person, Henry Paulson, (Goldman Sachs CEO ) will be the only person in charge and be responsible to no one. Not Congress, not citizens. It is specifically stated by the President that no one will be told where this money goes.

3) This proposed ‘bailout’ will cost every American citizen, and their children and grandchildren over ten thousand ($10,000) per person

4) The companies responsible for this fiasco will not be held responsible, and even though they have given upper management, especially the CEO’s, millions in bonuses while these companies are tanking, there will be no blame placed on anyone.

5) Money for rehabilitation of injured soldiers was not available. Money to help citizens whose homes went into foreclosure was not available. Money for child health care was not available.

Seven Hundred Billion is available to give back to Saudi Arabia, China, Switzerland and other countries. Investing in the stock market is a gamble. Ordinary citizens who lose money are not reimbursed. Why should countries get back money when people do not?

I am telling everyone who reads this, pass on the information to others, and everyone call their Senators and say NO to this out and out plundering of American Citizens.

athena_louise

The stock market is a system for the buying and selling of stocks and shares. Before investing in the stock market (especially as an individual investor) you need to know how it works.

As an individual investor you trade (buy and sell) stocks and shares with everyone else in the market. There is no segregation of large and small clients, everybody trades with each other. The price of a stock depends on its demand and supply.

The trading floor of the stock market is where traders shout out their bids and quotes for stocks. Trading is also done on computer terminals in the stock market. All the computers are linked to a network.

Beginner stock market investing advice is far ranging on the internet. I’ve said it before that the individual investor will find it hard to make money in stocks. Most individuals are ready to invest in stocks right now. Yet to make money you need to study and studying takes motivation, which is very hard if all you want to do is impatiently throw your money into stocks.

If you don’t want to study then here are some tips.

1- Throw out the rulebook. There are no set rules for investing and there are no guarantees of success.
2- The best analysts make informed decisions. They have detailed reasons for buying a stock and for selling.
3- Determine how much risk you wish to be open to. This depends on your goals, so have your goals formulated first.
4- Price isn’t the same as value. If investing as an individual look at the reasons some stock is priced high and some is priced low. It cold be that business sector in general is suffering a downturn and it’s having a knock-on effect of other, more stable stocks.
5- Check a companies net worth, which is profit AFTER taxes.
6- Depending on your investment capital you should spread your investment risk. It is ok to have money in riskier and potentially higher return stocks, just balance it out by having capital in a variety of stocks and other investments.

The best advice I received was no matter what the economic conditions you should always invest because in the long run you’ll come out on top. Put it this way, whoever got rich putting money in the bank? You know what the banks do? They invest your money and make more money. Isn’t it about time you invested your money?