My name is Idris A. Ismaila,
I’m here to discuss about Penny Stock trading. We all know that life is all about risk. There is no business without its risky side. But remember, the higher the risk, the higher the returns. You should have a plan for next year for making solid money from Penny Stocks and shares. You should plan to make big money from penny stocks. I will be showing you more secrets that will fetch you millions by 2008. I will want you to know that from experience you can avoid all the losses in Penny Stock trading.
The more precautious you are the better. Precaution they say is better than cure.
Just follow me.
1) Take the quarter performance register: What I mean is the later the performance you follow, the lesser the risk and the higher the profit. There are 4 quarters in a business finance year. A financial year comprises 12 months which is broken down into three months each. If the result of the first quarter is good, my candid advice for beginners is that they should wait a bit for the second quarter result to be released, then they can go ahead and invest and they will experience less risk compared to the man that invested after the first quarter.
The measure of risk used in the equity markets is typically the standard deviation of a security’s price over a number of periods. The standard deviations will delineate the normal fluctuations one can expect in the particular security above and below the mean or average. However, since most investors would consider fluctuations above the average returns as “risk’ some economists prefer other means of measure.
- Equity risk is the risk that one’s investments will depreciate because of stock market dynamics causing one to lose money. Buying into a company’s future profitability exposes you to range of risks. But you can make three broad distinctions.
- Market risk First, there is background economic risk – the uncertainty of economic growth levels inflation, interest rate, foreign exchange rates, import-export prices etc…
This is often referred to as Market risk. It is going o be there when you invest in any stock.
- Industry/Sector risk Industry risk relates to uncertainties caused by particular feature of the industry sector in which a company operates.
- Company risk Finally, there is company specific risk. Each company each stocks and background economic (market) risk in its own way; and the way the each company turns threats into opportunities and efficiently exploits those opportunities will be decisive in generating shareholder returns.
2) Risk reduction
i) Have a target entry period, have an entry principle.
ii) Have a written down plan
iii) Research about the market.
iv) Have target exist period
v) Plan towards possibility of risk
vi) Wait for another cycle
3) Risk avoidance
i) Buy only in the third quarter if the 1st, 2nd and 3rd quarter result is good.
ii) Buy only stocks hat you know you can hold for ten years or more
iii) Buy stocks that you know you can hold even when you know that the market can close down.
4) Risk Spread
Try to invest in different sectors, but you must make sure it is liquid. Never put all your eggs in one basket. Every single day counts in wealth accumulation. Do not invest in what you don’t understand. Avoid pressure buy stop. As a matter of fact never buy stocks under pressure.
I am determined by the grace of God to help you make your first million in stock by year 2008. Make sure you plan you invest
For any questions and issues on Penny Stock investment e-mail: - idrisbuz@gmail.com