How to Day Trade Penny Stocks for Beginners
Find Out How You Can Trade For a Living Using Unique Trading Psychology, Expert Tools and Tactics, and Winning Strategies.
Bill Sykes
Timothy Gibbs
Copyright 2019 - All rights reserved.
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Table of Contents
Introduction
Introduction
Congratulations on downloading your personal copy of Penny Stocks for Beginners: A Complete Guide to Investing in Penny Stocks, Day Trading, Passive Income, and Massive Wealth . Thank you for doing so.
In this guidebook, were going to spend some time learning about penny stocks and why they are among the best options to consider when deciding to get involved in investing. While there are many choices within the world of investing, penny stocks can be an interesting one to decide upon and one that has the possibility of bringing in a lot of profit. This guidebook contains everything you need to know about penny stocks so that you can learn how to start using this investment tool for your own benefit.
First, we will start with some of the basics concerning penny stocks and how they are different from other stocks that are available. We will also discuss the two main options for penny stocks - namely the pink sheets and the Over-the-Counter Bulletins. Once youve had a chance to learn about these basics, we will delve deep into the topic of penny stock investing. Well touch on how to get into the game and find a good broker before moving on to some of the top strategies you can implement to put your money to work and find out which penny stocks will work best for you. The guidebook will conclude with some basic tips that can help you really see results, even as a beginner.
Investing in penny stocks is a great way to open up your portfolio so that your money can grow more than ever before. However, it does take some time and effort in order to learn this method and make it work well for you. This guidebook is going to give you the tips that you need to get started creating a good income with penny stocks.
There are plenty of books on this subject available on the market, so thank you again for choosing this one. Please enjoy!
Chapter 1: Get Familiar with Stocks
Have you thought about using any passive income sources? Do you have a desire to be part of a profitable investment? If so, you should definitely consider investing in the stock market. Though investing in stocks is a profitable venture, it is a difficult one. You will be required to learn several things in regard to stock investments before you can begin buying the quoted shares in the stock exchange market. Do not make the mistake of buying stocks before understanding the basics; you will regret it in the long run.
To put it simply, one share of stocks is the representation of a partial claim that the owner has towards the earnings and assets of the issuing company. If the number of shares available in the market is higher, then it means a single share will have less worth. If one has a higher number of shares for a particular company, then that individual has greater control over the company. Any owner of stock in a particular company is regarded as a shareholder, implying that they own a portion of the profits of the company (Hayes, 2013). Such portions are normally called dividends. The payment of dividends is made on predetermined points of any particular year. If you have shares of a specific company, you may have voting rights regarding the decisions of the company, in which case you can influence its future progress.
You should note that owning shares of a particular company does not give you an active say in the daily operations of the company. Owning shares provides you with entitlement to a profit share and voting shares. During the annual shareholder meeting, you have the possibility to vote for the members who constitute the board of directors. This is the moment where you have the chance to express your satisfaction or dissatisfaction towards the current setup of the company or how its run.
When you decide to invest in the stock market, it is paramount that you understand the risk. Be considerate of the companies you resolve to invest in, and identify whether they pay out dividends; not all companies do so, and its not a guarantee that one that paid out dividends previously will continue doing it. This is because, when talking about the stock market, profits are never 100 percent guaranteed. It is impossible to count on continuous stock appreciation in generating more value. There will be reasons that may contribute to the slipping of a given stock. Its also possible that the company could declare bankruptcy.
Dont consider the risk with negative thoughts, though; consider it as a tool that can help you evaluate the potential of a given stock. If a particular stock presents a greater risk, then the possibility of reward is high if it moves in the direction you want it to. If you carefully take the time to understand the risk, you will generate a return thats higher than the standard 7 percent promised by many investments; you may even reach a profit of 12 percent.
Why Do Companies Sell Stock?
A company sells stock when it needs to raise money. It can also do this by borrowing funds from a bank or another source (Metcalf, 2019). However, if its owners choose to sell stock, there are no repayment plans youll face in the future.
There are a few different ways to sell stock. If a companys owners want to control who is offered a piece of the pie, they sell stock through private placement, which allows the management to choose to whom the stock is offered.
Chances are that if youve purchased stock or plan to do so in the future, youve done so through a public offering. Companies initiate public offerings, as was noted, in order to raise money. They may need money for a variety of reasons, including expansion or any other kind of further growth, or to pay back owners or investors who had a hand in starting the company.
Companies set up an initial public offering (IPO), which is the first offering of stock, but they can also continue later with a secondary public offering if they need to raise more capital.
A company that has stock thats performing well is usually considered a stable company and tends to have an easier time raising money through lenders, as well, aside from the sale of stock.