2013 m. rugsėjo 6 d., penktadienis

Why penny stocks?

Hello everyone again,

It was long time ago when last time i've tryed to post anything here, but stilll want to share a few points.
Instead of looking for the companies which has a very high price comparing with the cash to invest, i have decided to invest money into the penny stocks, than you can buy more shares and a profit might be more seriuos than ever. BUT YOU CAN'T BE ALL THE TIME 100 % SURE, potencial to loose is equel to win if you don't have enough experience or didn't do your own research. I recommend: DYOR (do your own research), always buy shares cheap, sell on highs..All the time by analyzing the stocks i am trying to find stock which has big potencial to rise twice or sometimes even three times.
I want to share a few graphs so you can see how in one month it is possible to triple your money selecting penny stocks and being patient. Patience is a key. Just have a look, i bought the share for price of 0.149p  on the 9th of August and now it is worth 0.33p. If you want to achieve bigger success must be more active,  some of the guys sold their shares on 27th of August, toped up again at 30th of August and still keeping the shares for a couple more months take out the profits. That's why i like day trading, you always can see the market, every single day it's opportunity to find some boom stocks like ECR minerals. I chose the patch of day trading just because i have my opinion why it is better than keep your money somewhere unobserved for long time.

Two different scenarios:

 Just take a look at the graph below:

1. Day Trader:  can use highs and lows to make profit not once but ten times per motnh and overall result might be a lot bigger when 100 %, it's  500 % profit of investment.
2. Long term invester: he may buy shares on 9th of AUG, sell them on 6 of Sept and overall result -100 %

Both scenarios are good, day traders are on risk all the time, one day they can loose, another - they can win, but if they are focuced on some of the shares all the time they know how the market works for them. Also day trading requires a lot of patiece, self control, discipline and cold mind, by the ways you need to spend 15 ours per day to see what is happenning in the global economy, stock markets, you always need to be switched on, no matter when and what. To be day trader it's mean to be tired, a lot of stuff is going on all the time.
Long term investers can sleep well at nights, they understand that their investment is kept for long time so they don't need to fallow the market so often so they can be relaxed and focus on other things in theri life, ussually long term investers just check their stock accounts one per months just to see what is sp right now or they can keep it to get dividends.

In my opinion it is usefull to combine those two things, be active but build your long term investment portfolio at the same time. Never ever put all eggs in the same basket, that can minimise the risk to loose.


So for this time i think it is enough, i will continue later on, hope you liked my post. Good luck!

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