Investment

Guide On How To Start Investing In Penny Stocks

There are many risk factors faced by investors, but none of them is comparable to investing in penny stocks. It is considered downright risky. Thus, it is important for one to learn the secrets on how to start investing in penny stocks before venturing out on this investment.

Here is a guide on how to start your penny stock investment:

how to start investing in penny stocks

1. Do Adequate Research

Because penny stocks are high risk investment,one needs to do his homework before committing putting his hard earned money in a stock only to lose it all. Before investing, note the following:

  1. In order that a penny stock can remain on the OTCBB exchange, there is usually no minimum standard that is set at all. The fact that there are no minimum standards means one needs to practice more caution as they will have to have a close relationship between the buyer and the seller.
  2. Unlike other kinds of stocks, penny stocks should not be traded on the stock exchange. This means that the owner or the persons running the penny stock need not register under SEC. Most trading stocks will depend on how well a company will perform. They depend on the information given to an individual. Penny stocks are bets with very limited information.
  3. 3.    The fact that penny stocks are not really considered as good stocks to invest in, it is very hard to liquidate them as finding a buyer is hard. For this reason, one is forced to sell at a very low price.

2. Open A Brokerage Account

For any stock investment, it is best that you have an easy and safe way to transact your stocks. With new online brokerage sites, one can sign up and transact their stocks comfortably and safely.

Most of the time, only brokerage sites do that but it is good to ensure that before you sign up to an online brokerage site, have them provide you with all the important information about the stocks that you want to buy.The information may include the history of the prices, the best brokerage accounts to go through and many others to help an individual buyer.

3. Don’t Always Believe The Hype

For a very long time now, penny stocks have been used by many people to defraud people off of their money.Yes, you would want to make a good significant amount of money out of the stock but you do not want to run for the get rich quick schemes that may take all your money promising you easier ways on how to start your investment in penny stocks.

how to start investing in penny stocks

It is alright to invest in something to make use of the money that you have worked for. However, be wise enough to invest them to people who will not scam you but will help you instead on how to start investing in penny stocks. Equip yourselves with the right knowledge in order for you to see your money grow in the market without worrying.

Investment

5 Reasons Why You Should Choose Merrill Lynch Investing

If you’re looking for the right financial partner, then Merrill Lynch investing could be for you. Merrill Lynch is the wealth development division of Bank of America and was founded way back in 1914. As an investment firm, Merrill Lynch assures its clients of sound financial advice. This firm is one of the top investment companies in the world. They heavily invest in improving their management practices. They believe that quality financial services start with their people.

There are a number of solid competitors in the industry of financial management. But Merill Lynch always seems to come out on top every time. Let’s learn why they constantly outperform the competition. Here are the top 5 reasons why you should choose Merill Lynch as your investment institution:

Reason #1: Proven Track Record

Merrill Lynch has been in existence for almost a century. Decades of experience have given Merrill Lynch an advantage over the newer financial firms. They’ve been through countless crises and survived them all. It’s a good bet that Merrill Lynch will outlast and outperform the competition because of this advantage.

Reason #2: Great One-to-One Support for its Clients

They have over 600 offices in the US and employ around 15,000 financial advisers. This means Merrill Lynch can afford to have one adviser assigned solely for you. This advisory’s job is to make sure your investments earn. Other banks and investment firms just can’t compete with the one-to-one service support Merrill Lynch provides. Plus, their customer service team works real fast to solve problems while maintaining the highest level of professionalism.

merrill lynch investing

Reason #3: Top-notch Website with Great Features

Check out www.ml.com and see for yourself. You can also find Merrill Lynch Direct (ML Direct) in their website. ML Direct is their version of a stock trading application that’s available online. Their website also offers a slew of financial tools like email alerts, charts, graphs and quotes.

Reason #4: Easy Investing Options

Market trades are offered for as low as $14. This low entry rate is an advantage to those who are new at investing. The low market trade rate gives them the chance to do actual transactions with a fairly safe investment. Their commission rates and other fees are competitive as well.

Reason #5: Forges Relationships based on Trust

Trust is a big thing in investing. As it turns out, a lot of clients trust Merrill Lynch because of all the other factors discussed above. Investors know that Merrill Lynch financial advisers have their best interests in mind. And these investors are constantly rewarded with handsome gains coming from their investments with Merrill Lynch.

Merrill Lynch, with all the reasons discussed above, is a good option to partner for your financial investments. Go ahead and check out their website to find out more. Or you can visit one of their offices and talk to a financial adviser. When trying to figure out where to make your money grow, Merrill Lynch investing is one strong choice to consider.

Finance

How To Day Trade Forex: Mistakes You Have To Avoid

how to day trade forex

Serious money can be made if you know how to day trade Forex. For the uninformed, Forex refers to the Foreign Exchange Market—a market where the world’s currencies are traded. It is also called FX or currency market. As for a day trader, these are the guys who do the buying and selling in a given holding period. The exchanges or transactions only happen in the morning because the market closes at noon (hence the term ‘day trading’).

If you’re interested in spending your day Forex trading then this article is for you. We will give good advice on how you can start your career as a day trader. Consider this your introduction to day trading for beginners.

Day Trading Don’ts

We begin your Forex day trading crash course not with lessons on what to do, but with tips on what mistakes to avoid.

MISTAKE #1: Averaging Down

Averaging Down is a Forex trade strategy where the trader lowers the average entry price of a trade for fear of accepting a losing trade. By averaging down, contracts of a lower price are added into a trade. This move effectively lowers the average entry price of those two contracts packaged as one. By doing this, the trader is holding a losing position. Huge capital is lost when averaging down. And the trader will be hell bent on gaining back the losses in every other trade he makes.

MISTAKE #2: Acting Hastily Before News Announcements are Made

News events have a great effect on the market and can cause surges or drops in rates. When rumors of an impending news event come out, a lot of inexperienced traders jump the gun and make purchases or buying decisions based on pure speculation. This rookie move has the potential to cause the inexperienced trader huge losses.

MISTAKE #3: Joining the Bandwagon

As a corollary to number 2, this mistake is when news hits and the trader moves together with market to ride the wave of surges. But this can easily backfire because the market is known to swing back and forth. This volatility doesn’t manifest itself after some time. So it’s best to wait for the market to stabilize before making a trade.

how to day trade forex

MISTAKE #4: Risking Too Much Capital

In Forex trading, it’s been established that excessive risk can lead to excessive losses in the long run. There’s a rule of thumb for Forex day trading that no more than 1% of a trader’s capital should be risked for a single trade. It is therefore advised that traders don’t gamble too much on risking their capital for a single trade, no matter how good it seems on paper.

MISTAKE #5: Being Unrealistic

A day trader should cultivate the habit of being realistic. They need to understand that the market is volatile and can act in an illogical manner at times. By being realistic, a trader will do his best to become disciplined and not be swayed by emotions. They also need to realize that they cannot be winners in all their trades. They just need to make sure that their winning trades outnumber their losing ones.

The tips above should give you a clearer picture on how to day trade Forex. Avoid these five mistakes at all cost and you just might make a good living for yourself trading currencies.

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