As we have seen earlier, penny stocks carry higher hazards and can also give bigger returns. This really means you can either lose serious money by making an investment in penny stocks ( due to the higher risk factor ) or make big money ( due to the higher potential returns ). Which of these happens to you may rely a lot ( although not only ) on how you go about considering the investment. Before we are going further nonetheless, you ought to be aware that whatever how much care you can take there's a certain quantity of risk connected with penny stocks, which is way higher than in the case of big cap, stock exchange registered stocks.
So as to evaluate whether you can earn cash out of a penny stock, you need to understand how one makes cash in the market. One of the returns that one gets from a stock investment is as dividends. That nevertheless is mostly a little portion of the returns that one gets from stock investment. The major returns come from appreciation in the cost of the stocks. The costs of stocks are considered using different yardsticks or parameters. The first of these is the investment return. If the return on a stock is 10% and the price takings proportion is ten, as an example, the stock would be priced in the region of 10 time the revenues or 100 pc of issue cost. To paraphrase this stock would be traded at its face value. From this we are able to see the price would rely on 2 things, the unconditional return and the price-earnings proportion.
The second important factor that impacts on the price is the book cost of the stock, which is essentially computed as a figure that represents the assets available in the company against each stock. For instance, if a company has net assets of $100,000 and has issued ten thousand shares, the value of each share under this strategy would be $10.
The cost of a share is also valued based on a couple of other criteria. But the most vital factor from the market viewpoint is the returns the stock generates. The worth under this strategy would rely on the revenues and the price-earnings ratio. The latter is a matter of perception that will depend upon the risks linked with the stock. This perception will go through changes dependent on the history of performance of the organisation, the available info regarding the company and its prospects, and the market buzz about upcoming major events in the company ( for instance a takeover by a major organisation ).
Of these, the most significant from the long term standpoint is the consistency and quantum of takings from the long run and the direction of the price-earnings proportion in the near term. As a speculator what you want to assess and be conscious of are :
- Is the company stable enough to sustain its takings and expansion? Who are the promoters? How long has it been in business? Answers to these and other such questions
- How is the market perception of the company? How is it sure to change?
- How are the elementals? Does the Corporation have a good financial base? Does it enjoy a good business?
Ultimately , the old proverb don't put all your eggs in one basket is true to a more serious extent in the case of penny stocks. So invest a little at a time and do not put all of your cash on one or 1 or 2 such stocks.
Saturday, December 25, 2010
Friday, December 24, 2010
Tips To Stops When Trading Stocks
A stop is a predetermined number below our entry price if we are long or short. Stops are their for our defense against loss when our program goes wrong.
Though they are not 100% correct, there are bad fills and slippage. The position has control over you, but you are out there disagreeing with it and if you do not have the stop in place then what do you do?
You've lost control, emotions begin to set in and you have gone done a road that you do not wish to be on. You've entered within the wish I wasn't here zone. You begin lying to your self saying it will come back its just temporary or much better yet I'll purchase much more shares to offset the loss, not realizing that it might decline further. Certain sufficient it comes sucking up all the tough earned cash in a matter of days.
Now for the piece of humble pie. Stops should be placed with a money management plan behind it but first you have got to figure out how much you are ready to lose on any specific trade. As an example, let's assume that I have $5000 to trade with today.
If I'm Jumping Jack, a risky trader, and I use a high quantity of leverage, trade multiple amounts of shares and multiple stocks all at one time putting 40% of the total money that comes to $2000 at risk. Risky Rob chooses a 20% of the total which comes to $1000 at risk and Timid Tommy risks 10% of his total which comes to $500 at any 1 time.
Keep in mind this is a total of all positions combined if you're trading multiple stocks. If you are trading one then just determine what price that's and what it translates to in terms of order placement to either your broker or what to plug into your trading platform which most of us are on now.
You have got to inspect yourself regarding the risk toleration class you fall into... Which is whatever level that may get you to sleep at night and carry on with your life, with no stress or character changes.
Folk get in difficulty when they over trade and over leverage. Doing your homework on determining the current trend direction and determining your stop placement based mostly on your tolerance to loosing cash should join your company plan.
Though they are not 100% correct, there are bad fills and slippage. The position has control over you, but you are out there disagreeing with it and if you do not have the stop in place then what do you do?
You've lost control, emotions begin to set in and you have gone done a road that you do not wish to be on. You've entered within the wish I wasn't here zone. You begin lying to your self saying it will come back its just temporary or much better yet I'll purchase much more shares to offset the loss, not realizing that it might decline further. Certain sufficient it comes sucking up all the tough earned cash in a matter of days.
Now for the piece of humble pie. Stops should be placed with a money management plan behind it but first you have got to figure out how much you are ready to lose on any specific trade. As an example, let's assume that I have $5000 to trade with today.
If I'm Jumping Jack, a risky trader, and I use a high quantity of leverage, trade multiple amounts of shares and multiple stocks all at one time putting 40% of the total money that comes to $2000 at risk. Risky Rob chooses a 20% of the total which comes to $1000 at risk and Timid Tommy risks 10% of his total which comes to $500 at any 1 time.
Keep in mind this is a total of all positions combined if you're trading multiple stocks. If you are trading one then just determine what price that's and what it translates to in terms of order placement to either your broker or what to plug into your trading platform which most of us are on now.
You have got to inspect yourself regarding the risk toleration class you fall into... Which is whatever level that may get you to sleep at night and carry on with your life, with no stress or character changes.
Folk get in difficulty when they over trade and over leverage. Doing your homework on determining the current trend direction and determining your stop placement based mostly on your tolerance to loosing cash should join your company plan.
About the Author:
Learn more about best penny stocks. Stop by Author Name"s site where you can find out all about penny stock trading and what it can do for you.
Thursday, December 23, 2010
The Rights And Wrongs Of Business Networking
Networking as part of your business is a very important tool for getting your message out there and for people to be able to find your business. There are of course right ways to go about networking whether it is social networking on the social media websites or business networking at the local networking association you need to conduct yourself in a certain manner.
Social network marketing can improve your business no end and for it to be beneficial you need to be seen as an expert in your field and have interesting things to say. Nobody really cares that you made 10,000 dollars last week in fact they will just think what a show off for telling us that, what they do want to know is the secrets that got you to make that money.
People are very interested in learning and they love to obtain energetic information that is going to help them succeed in business. What you need to do is get yourself across as being that person that can help, and is a reliable source of information.
When you post a tweet on twitter you want people to say look that person has just tweeted, I best read that one instead of them scrolling past the tweet and just classing it as another load of BS. Social media is not an overnight success story it is one of the things that can take months or even years to build up but will have massive benefits when it comes to building your business.
Social media is a phenomena that hit the world by storm in the millennium and everybody that is anybody is logging on to some sort of social network some where to find out what is going on or to share their experiences with everybody else.
There is now more traffic going through the social networks than there is going through some of the major search engines such as Google. The beauty of social media is that it even more targeted than pay per click advertising because the social network sites will only show your advert to the people that you want to see it right down to their hobbies and date of birth.
You do not have to pay for expensive adverts to benefit from social media, just being chatty about the subjects that interest you can be enough to get people reading those posts then slowly lure them into your networking strategies. It is all about striking up relationships and getting people to trust what you say or what you want to sell.
What social marketing is not about is constantly ramming your business down their throats in the hope that they eventually join. This is likely going to get you taken off their friends list if anything and will certainly not do your reputation any good. You need to think help full and do not be scared to give away a golden nugget of information every now and then you will benefit from it eventually.
Social network marketing can improve your business no end and for it to be beneficial you need to be seen as an expert in your field and have interesting things to say. Nobody really cares that you made 10,000 dollars last week in fact they will just think what a show off for telling us that, what they do want to know is the secrets that got you to make that money.
People are very interested in learning and they love to obtain energetic information that is going to help them succeed in business. What you need to do is get yourself across as being that person that can help, and is a reliable source of information.
When you post a tweet on twitter you want people to say look that person has just tweeted, I best read that one instead of them scrolling past the tweet and just classing it as another load of BS. Social media is not an overnight success story it is one of the things that can take months or even years to build up but will have massive benefits when it comes to building your business.
Social media is a phenomena that hit the world by storm in the millennium and everybody that is anybody is logging on to some sort of social network some where to find out what is going on or to share their experiences with everybody else.
There is now more traffic going through the social networks than there is going through some of the major search engines such as Google. The beauty of social media is that it even more targeted than pay per click advertising because the social network sites will only show your advert to the people that you want to see it right down to their hobbies and date of birth.
You do not have to pay for expensive adverts to benefit from social media, just being chatty about the subjects that interest you can be enough to get people reading those posts then slowly lure them into your networking strategies. It is all about striking up relationships and getting people to trust what you say or what you want to sell.
What social marketing is not about is constantly ramming your business down their throats in the hope that they eventually join. This is likely going to get you taken off their friends list if anything and will certainly not do your reputation any good. You need to think help full and do not be scared to give away a golden nugget of information every now and then you will benefit from it eventually.
IPO Initial Public Offering, IPO Invest & IPO Investing
One of the most profitable investment solutions for an accredited investor is the almighty Pre IPO, seed capital opportunity. Though extremely profitable this transaction is not for the non accredited or amateur investor. The risks are numerous such as how long it will take the company to achieve it's symbol, post public market creation and investor relations, corporate publicity, SEC audit and the 'C' level executives' professional pedigree just to name a few.
But when one takes all of this into consideration it is ideal to team up with a brokerage or consulting firm who specializes in the task of corporate strategies and IPOs. When a motivated and seasoned investor aligns himself/herself with a solid firm with who has access to IPO's it can be an extremely profitable venture and one of the few win/win situations in the investment industry.
Having access to a steady stream of Pre IPOs allows an investor to diversify in highly sought after and deeply discounted seed stock and also creates a rewarding solution for the IPO facilitators as they are raising capital and qualifying the company for it's offering.
There are a few things that an investor should consider when seeking a strategic alliance with an IPO facilitator: how long on average does it take the firm to complete a transaction from S1 to Symbol? What does the post public Investor Relations strategy look like to create the market? Do they have a market maker or broker dealer ready to sponsor the stock? What does the client company's executive staff, business model, board of directors and strategic partnerships look like? And who is doing the pre IPO audit on the client company?
These are just a few things to consider when finding stepping out to get involved with the much sought after pre IPO investment market.
The author of this article is not a broker dealer or licensed securities agent and one should always seek the consultation of a licensed agent before getting involved with an investment of any kind. This article is for information purposes only.
But when one takes all of this into consideration it is ideal to team up with a brokerage or consulting firm who specializes in the task of corporate strategies and IPOs. When a motivated and seasoned investor aligns himself/herself with a solid firm with who has access to IPO's it can be an extremely profitable venture and one of the few win/win situations in the investment industry.
Having access to a steady stream of Pre IPOs allows an investor to diversify in highly sought after and deeply discounted seed stock and also creates a rewarding solution for the IPO facilitators as they are raising capital and qualifying the company for it's offering.
There are a few things that an investor should consider when seeking a strategic alliance with an IPO facilitator: how long on average does it take the firm to complete a transaction from S1 to Symbol? What does the post public Investor Relations strategy look like to create the market? Do they have a market maker or broker dealer ready to sponsor the stock? What does the client company's executive staff, business model, board of directors and strategic partnerships look like? And who is doing the pre IPO audit on the client company?
These are just a few things to consider when finding stepping out to get involved with the much sought after pre IPO investment market.
The author of this article is not a broker dealer or licensed securities agent and one should always seek the consultation of a licensed agent before getting involved with an investment of any kind. This article is for information purposes only.
About the Author:
Find out how to globalize your business or You're your Company Public , Find out how to Structure Your Company to grow fast and raise capital
Wednesday, December 22, 2010
The fact is, freelance copy writing work has actually increased
A marketing copywriter writes advertising copy, and includes sale pamphlets, TV ads and even radio commercials. Furthermore, they also write Internet sales copy, and songs used on television and radio commercials. Beginner freelance writers should also investigate the many freelance writing opportunities in the many newspapers and magazines available.
Many corporations now out source copy writing assignments to freelance writers. This has given freelancers a fantastic opportunity to work from home. Corporations also benefit from this phenomenon. They no longer have to staff large teams of writers. This frees up salary and benefit requirements, saving companies a lot of money. In addition, they only must pay for work on an as needed basis. This allows companies to invest these savings somewhere else.
As previously mentioned, there are still companies who do all their copy writing in-house. In fact, some of these jobs pay very well. Working as part of a group is the norm here. Each group member works on his piece of the group's assignment.
The Internet has given freelance writers an over abundance amount of work. While the world economic climate struggles to create jobs, the amount of work available to freelance copywriters continues to grow. Consider all the websites and blogs that comprise the Internet. Someone needs to write all the marketing material for this venue. A good portion of this copy writing is being done by freelancers, and there is no end in sight. This is fast becoming the standard way of conducting business.
In this economy many companies have restructured. This has caused many writers to lose their corporate jobs. However, many of these same writers now freelance for the company they used to work for; they simply work on a per project basis. They have become home based entrepreneurs and have more work than they can handle.
There is an almost endless supply of topics that freelance writers can write about. These markets include, cruises, banks, colleges, and even sports teams need sales copy written. Some savvy freelancers have even turned to greeting card writing. The local and state government also has a need for marketing copy.
Contrary to popular belief print medium is not dead. Many magazines have simply added online versions of their publications while keeping their print versions. The same is true for newspapers. Many freelance writing opportunities exist in this arena, and should not be overlooked by novice writers. There are many magazines that pay their freelance writers extremely well. In addition, more newspapers are turning to freelance journalists to capture more of their news stories than ever before.
Obviously, many jobs have been lost in the recession. The fact is, freelance copy writing work has actually increased, and continues to do so. The Internet has made this possible. For anyone wanting to be a freelance copywriter the time is now. In addition, whether you are beginner writer or a professional writer you need to consider seriously soliciting work from magazines and newspapers. Freelance journalists are in great demand. There is also writing work available for print magazines, and it can indeed be very rewarding.
YZT4ZP7SB8AT
Many corporations now out source copy writing assignments to freelance writers. This has given freelancers a fantastic opportunity to work from home. Corporations also benefit from this phenomenon. They no longer have to staff large teams of writers. This frees up salary and benefit requirements, saving companies a lot of money. In addition, they only must pay for work on an as needed basis. This allows companies to invest these savings somewhere else.
As previously mentioned, there are still companies who do all their copy writing in-house. In fact, some of these jobs pay very well. Working as part of a group is the norm here. Each group member works on his piece of the group's assignment.
The Internet has given freelance writers an over abundance amount of work. While the world economic climate struggles to create jobs, the amount of work available to freelance copywriters continues to grow. Consider all the websites and blogs that comprise the Internet. Someone needs to write all the marketing material for this venue. A good portion of this copy writing is being done by freelancers, and there is no end in sight. This is fast becoming the standard way of conducting business.
In this economy many companies have restructured. This has caused many writers to lose their corporate jobs. However, many of these same writers now freelance for the company they used to work for; they simply work on a per project basis. They have become home based entrepreneurs and have more work than they can handle.
There is an almost endless supply of topics that freelance writers can write about. These markets include, cruises, banks, colleges, and even sports teams need sales copy written. Some savvy freelancers have even turned to greeting card writing. The local and state government also has a need for marketing copy.
Contrary to popular belief print medium is not dead. Many magazines have simply added online versions of their publications while keeping their print versions. The same is true for newspapers. Many freelance writing opportunities exist in this arena, and should not be overlooked by novice writers. There are many magazines that pay their freelance writers extremely well. In addition, more newspapers are turning to freelance journalists to capture more of their news stories than ever before.
Obviously, many jobs have been lost in the recession. The fact is, freelance copy writing work has actually increased, and continues to do so. The Internet has made this possible. For anyone wanting to be a freelance copywriter the time is now. In addition, whether you are beginner writer or a professional writer you need to consider seriously soliciting work from magazines and newspapers. Freelance journalists are in great demand. There is also writing work available for print magazines, and it can indeed be very rewarding.
YZT4ZP7SB8AT
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