Making a pretty penny out of penny stocks

Not all people have enough amount of money for equity investments. However, it should not prevent anyone trading at stock markets. You still can buy and sell stocks and turn an honest penny. Consider penny stocks.

What are penny stocks?

Penny stocks got their name because of relatively low price, which is typically less than $ 5.00. The low price makes penny stocks so attractive to individual investors who usually do not have sufficient funds to build a portfolio of the most expensive shares issued by large companies. Some penny stocks grow in price significantly, bringing their owners incredible profits, but there are cases when the companies issuing penny stocks turn out to be low-profit or even go bankrupt.
Some of the most successful companies started as penny stocks companies. The share price of such companies as Mylan Labs (MYL), Fortescue Metals Group (FMG), originally was well below five dollars, and now it is relatively high (though not a blue chip) and stable. There are companies that started small but it hit big and noted a remarkable increase in the stock price.

Penny stocks may grow in price and bring profits.
Penny stocks may grow in price and bring profits.

Rules to avoid risks at the penny stock markets

Penny stock companies are also known as small-cap companies. Small-cap stands for small-capitalization. These are companies with dollar capitalization less than $50 million dollars. This is the reason why their shares are traded for less than five dollars. But how can one choose these penny stock companies for investment? What are the risks? Since you are playing at the stock market there is always a certain level of risk involved. However, you can minimize the risk, following these simple rules:

1. Make inquiries. When choosing a company for investment, it is important to know if it can offer good prospects for the future. Check its economic background paying attention at each economic event; examine its vision and plans for the future development. This way you can reduce the risk of being a victim of a fraud.

2. Start small. It is better to start with small investment. Remember that you still get some experience from this type of shares. In this case cautiousness is not cowardice, but necessary preventive measure.

3. Follow the trends. Try to follow current market news to understand the common trends. Currently, the shares of IT and environmentally responsible enterprises are nice choice to invest to the future. You can focus on these sectors and keep yourself up to date with the news of these industries.
When you help these small companies, it is cannot be regarded as speculation. There is certain social responsibility that appears if you think that these small companies are really good in their sphere and have promising future. You may find that their products may be solutions to some persistent world issues. Though the profit may be small, do not forget that investing does not always means profit, but always means a game. Benefit is benefit no matter how we look at it. Do not lose courage, you may lose a few dollars, but, at the end of the day, you played the game. Who knows, you may make a fortune supporting losers.

Penny stocks
Fraudsters always make money by deceiving those who lack experience

The business and finance articles are filled with the information about the penny stocks, as one of the most popular investments. Penny stocks are traded with a relatively thin price (usually 5$-10$. The problem of the penny stocks is that they often become the targets of manipulators running a risk of such microcap stock fraud as pump and dump. This form of the fraud is about inflation the price through false statements which allow selling the stock for the higher price. Today it is much easier for fraudsters to cheat, as the Internet offers an easier way for pulling the fast ones.

How does it work?

Those who are interested in a stock market research have already heard about this unimaginative but very tricky scheme. Some scam companies buy stocks, which are not in the high demand, spending on them very little money. Then they start sending emails that contain the idea that penny stocks are a great money investment. To these letters they usually add fake business stories which play the part of some kind of advertisement. They tell about the establishing of the gold stock company describing what a great profit it is. In fact, such companies do very well when their trusting preys start buying the stocks wasting a huge sum of money.

It is obvious that no benefit in such shady transaction is expected, so there is use thinking everything over before you start anything

How not to become a victim?

  • Do not trust unfamiliar companies, especially if you cannot find out any information about them in the Internet. Even if it sounds like a profitable investment, it will bring you nothing but a disappointment.
  • Find where these stocks come from. Thinly traded stocks only appear on the bulletin boards, which are the least reliable of all.
  • Look for more information on their site to find out about the company that started motivating you to buy the stocks from them. Check whether there have ever been any complaints, and how long the company exists.
  • Use your skepticism. The propositions will definitely sound too tempting, but it is worth thinking it over to realize that there are no easy ways for making money.

Some sources offer to use this scheme as a way for making money, which not only criminal but very risky, as this fraud has been attracting attention of the law-enforcement agencies for a long time.

Top new businesses
Building is one of the most ancient occupations

Business is being developed every day in every time of the year. What kinds of top new businesses have recently appeared?

Construction business

It is believed to be the most beneficial money investment, and the most perspective is building new city objects, but this field is also filled with high commercial competition. The idea of the construction business itself is not new at all, as it has always been one of the most popular businesses ever; however it has a lot of new directions which constantly increase.

Roof covering

Roofs are one of the most essential parts of the building

Repairing works are always needed by people, especially for those have country houses somewhere in the uptown. This business includes not just the mechanical process of roof covering, but also relevant material such as slates, tiles, paints and other items, selling which often becomes an independent business.

Design is one more idea in the business world which never loses its popularity. It divides into a lot of branches and up-to-date style directions, so good designers make huge sums of money for their services.

Producing/installation of doors, windows, balconies, double gazing

Doing all these jobs on your own is rather time-consuming and difficult job, so thousands of people turn to special agencies and companies for help. Assembly and door installation are a profitable business. In addition, some of the firms offer the service of making the objects to a consumer’s order. Nowadays there is a wide variety of designs, so using them allows fabricating unique products which are in demand by those, who due to some reasons choose nonstandard product.

Online shops

This kind of business is among new online businesses which are available in the Internet. E-shops are relatively new, by now, they are everywhere. The World Wide Web is full of advertisements of online shops of clothes, cosmetics, technical details, jewelry and other products whose variety is not always available in the simple stores. No wonder that now lots of consumers prefer online shopping where everything can be found for a reasonable price.

One the one hand, this option is often chosen, since you do not have to worry about a rent, on the other you get into the very high competition, as it is extremely difficult to make up something original, to find a unique product for sale. It is not enough just to launch the e-shop, people also have to know about your business, so it is important to organize advertising that will catch an eye of your potential clients.

Zoo business

Today our society pays a lot of attention to the disabled animals

It is said that the latest business connected with animals can be divided into two sections: organizing the animal shelters, creation the special conditions for endangered species, such as making reserves, forbidding of slaying animals. Other direction of the world markets today is selling products for pets. The variety of the such products ranges from producing pet food, toys and aquariums to the wheelchairs for animals with special needs.

Business and finance news
Nowadays catching up with the latest news is something which is not to be missed

In our modern capitalistic society you can hardly find a person who does not take an interest in business. At the same time, many starters who decided to go further and build up their own business face some certain difficulties they cannot overcome without being business educated. Why do we need business education and how to get it?

Nowadays business topics are especially popular not only with those who are involved in it, but also with those who only start getting interested in it. Being aware of the latest business and finance news is essential for both these categories of people. The variety of articles can offer the latest information about different sides of business, including business financial aspects, kinds of business and the basics which might be useful in the very beginning. (We have looked through 5 articles and chosen the best ones)

How can we benefit from business article websites?

In the beginning, and even after your business was moved, you definitely look for advice from someone who has already been through what you are only starting. Reading the business and finance news, extracts from the interviews of the business giants will only benefit you.

Psychological influence

Psychological influence

Some article writers in business topics share not only their professional business experience, but also such important psychological aspects. The aim of Carl Richard’s article, posted in The New York Times is to demonstrate the idea that social opinion does not always matter, especially when it comes to implementing the original idea. The writer highlights the importance of not letting others to bring you down in the beginning of your work.

Starting investment

Financial businesses are closely connected with a wide financial system and money investment. When you step into the commercial world belonged to the bankers and other investors, you often cannot help losing your courage observing the large variety of different funds. In this Jeff Brown’s article you will find answers for the common questions.

A peace of advice

During the hard work businessmen often face some confusing, even uncomfortable situation connected with clients and your income itself. Lessons of self-protection in your business and how to avoid hurting the company are given by different businessmen.

Running the risk

Never expect your business to go smoothly, without any obstacles. They reveal you new directions and approaches, and exploring them always takes some risk. The use of taking risks is described in one more Carl Richard’s article.