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Getting Rich On Penny Stocks In The Tech Sector

When people get started investing in the stock market, they do not usually think about penny stocks. Instead, they might turn to recognizable corporate names. But, these stocks might be priced to high for the rookie investor.

Instead of ignoring penny stocks, new investors should take a good look at the Tim Sykes Millionaire Challenge. The young investor made his fortune by starting off with the most inexpensive stocks that he could afford. Once he made money on penny stocks, he was able to look at the big corporations that deliver big dividends.

Investing In Stocks Can Be Risky

These stocks may not be well known in the world of investing, but they are often the first ones that young tech companies use to build capital. If you do decide to invest in risky penny stocks for tech upstarts, there are a few things to consider:

  • Penny stocks can be traded after hours which makes them challenging to follow
  • Accurate quotes are difficult to find because they are traded so infrequently, even after hours
  • Companies offer little information to the public since they are so young and they often do not have the means to provide reports

Because of these challenges, even the most competent investors can be hesitant to get involved with these stocks.

But, if you want to reap the financial benefits of helping young tech companies build their capital, then buying penny stocks is one way to do it. Since these stocks are only a penny, the risk may not seem overwhelming, especially if you start small.

Learn About Investing In Tech Startups

Fortunately, there are other people who try to win big with penny stocks in the tech industry. There are also popular investment websites that follow these young tech companies as they try to turn their names into household brands. These websites often teach young investors all of the terminology and skills that they need for success in the stock market.

Several well-known brands have actually spent time in the penny stock category and some have actually succeeded. Several tech companies have started in the bargain basement and worked their way up. So have many other well-known brands.

Even Ford Motor Company was a penny stock at one point in time.

If you do decide to follow penny stocks and work on investing, there are several resources available for help. Many websites that specialize in following stocks have special pages dedicated to young tech companies. In many cases, these young companies are providing resources to the brand names that we know and love.

How New Tech Companies Get Started

These young tech companies might be involved in exciting adventure. For example, some of the startup tech companies might…

  • provide tech-related services to large companies like Apple or Uber
  • improve products like drones or email apps
  • build products that help the traditional medical industry or the growing alternative medicine industry

If you don’t mind a little risk, investing in young tech companies and their penny stocks can be a helpful tool to grow your own wealth and work your way toward earning your first $1 million.

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Stocks and Shares: Crucial Advice for the Novice Trader

Trading stocks and investing can be difficult to get into. There are plenty of guides and tips online, and you could attend classes to study for it, but they can never prepare you for the real-world situations that occur on a daily basis for traders around the globe. To get you started, here are some tips that are proven to help improve your success and turn your curiosity into a job you can do from home.

Don’t Trade With Money You Can’t Afford

It sounds like a gambling tip, but it applies to trading as well. Never trade with money that you can’t afford, and never take big risks that you can’t afford to take. Always set aside money that you’ll keep for your retirement or another goal, and use a smaller amount of money to deal with trades and investments.

You should never make huge gambles when trading. Always focus on small trades and always pull out when a situation looks dire. A successful trader gains income not by making huge investments with a lot of pay, but by knowing when to pull out of a losing battle. Always set an amount of money for the day and never go beyond it. You need to be disciplined and you need to work up the ladder slowly, never take great strides and don’t treat it like gambling.

Quality vs Quantity

Make sure to concentrate on a few stocks at a time. You don’t need to own hundreds of cheap stocks that you can’t keep track of. Instead, you should focus on safe investments that have a high chance of giving a good return. Never bite off more than you can chew, and always stay on top of your investments.

Once you’re comfortable with trading and you can keep tabs on multiple stocks, you can start to take on bigger investments and start to reel in more profits on a daily basis.

Be Patient

Income from trading has to be accumulated over a long period of time. You can’t expect to start trading and make huge profits like you do in gambling. Focus on small and profitable trades, and make sure they are safe low-risk trades. If you want to invest in a risky trade, then don’t pour all of your money into it and treat it like an all-in bet.

Experience is also a major factor when it comes to trading. You shouldn’t hate yourself for failing to a make profit after the first week or if you invested into a trade you thought was safe but ended up going bad. Learn from your experiences, and stay motivated. There are many websites where you can look at other people’s experiences, such as The Fortunate Investor. You can learn from professionals that have made trading their main source of income, and the insight they offer is invaluable to your success.

Relax and Take Care of Yourself

Trading can be stressful just like any other job. In fact, when it’s your personal money on the line, it can be even more demanding than your regular day job. Make sure to stay healthy, exercise regularly, eat proper meals, and always prioritise your health over the job. Your money can come and go, but your health will always stick with you.

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Stay Safe With Any Investment You Make

Investing is something that everyone should start considering at a certain stage in their life. It’s not enough to just be a saver. You need to think about how to quickly increase your finances. At the same time however, you need to make sure that you’re safe when investing. You never want to be in a position where you could lose more money than you can afford. That’s why we’re here to offer some great tips that you’ll want to consider when investing your cash. Read more

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China Telecom Shares Fall Amid Probe Into Boss

Hong Kong (AFP) – Shares in China Telecom dropped as much as three percent Monday after news its head was under investigation, the latest high-profile target in a corruption crackdown.

The firm, one of China’s big-three telcos, saw its shares trade as low as HK$3.62 ($0.47) on Hong Kong’s bourse compared to the previous closing of HK$3.73.

At Monday’s close the drop had narrowed to 1.34 percent, with the shares ending at HK$3.68.

The probe into Chang Xiaobing for “severe disciplinary violations” was announced by the Central Commission for Discipline Inspection, the watchdog of the ruling Communist Party.

The term is normally a euphemism for graft.

Chang had been “taken away”, according to an article in the respected business magazine Caijing, adding that he disappeared just days before a meeting of the state-owned company planned for December 28.

Chang’s phone was switched off and he had not responded to multiple calls, it added.

“Since last year, when the authorities were probing oil companies, we knew they would be doing this for other sectors. Now it’s telecoms,” financial analyst Jackson Wong from the brokerage firm Simsen Financial group told AFP.

Wong said investors were moving cautiously pending further details of the probe.

Authorities have been pursuing a hard-hitting campaign against allegedly crooked officials since President Xi Jinping took office in 2013, a crusade that some experts have called a political purge.

After a stock market rout this summer, the nation’s financial sector was under the spotlight with several high-level executives reportedly being hauled in.

Billionaire Guo Guangchang, dubbed China’s Warren Buffett, disappeared from public view earlier this month amid reports he had been detained by police in Shanghai.

He briefly resurfaced afterwards but his conglomerate flagship Fosun confirmed the 48-year-old was “assisting in certain investigations” by Chinese authorities.

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Millennials Are Starting to Invest Their Money & Technology Is Helping

Between new regulations and advancements in technology, millennials are starting to invest their money, especially as they make progress paying off their student loans. It will take some time for this generation to build confidence in investing, however, and it’s easy to see why — they’ve lived through the worst financial crisis in recent history, and this group has more debt than boomers and Gen Xers combined, according to a TechCrunch report. Despite the debt and notions that “stock are for old people,” millennials are giving it a try. Today, technology seems to be the key to winning young people over.

Where Are Young People Investing?

Data from TD Ameritrade shows that 38 percent of the company’s new accounts belong to millennials. But where are these young people investing their assets? Millennials are typically investing in individual stocks. In a survey of 1,600 people, the five most popular stocks to invest in included Facebook, Tesla Motors, Amazon, Netflix and Apple. Managing director at TD Ameritrade, Nicole Sherrod, told The Motley Fool that millennials prefer to invest with familiar companies and brands that they have seen during everyday life.

Since millennials grew up with the Internet and a surplus of technology, it’s no surprise to see that a large number of young people are investing in tech-driven companies. This style of investing is far different from traditional methods. The aforementioned companies are not low-risk. Traditional investors seek out stable companies with growing dividends and predictable earnings.

Why Crowdfunding?

Millennials have been the early adopters of such crowdfunding platforms as Kickstarter and GoFundMe. Young people can choose to support tech startups, small businesses or e-commerce companies with ease, investing in others, putting their money where their passion is, whatever that passion may be. Not only is it easy to navigate these platforms, crowdfunding does not require a large chunk of change to get started.

It’s no coincidence that crowdfunding’s rise coincides with that of mobile technology, either. Look at the cell phones available from T-Mobile, for example — with a variety of options available for a range of credit scores, it’s easy for millennials to stay on top of their investments. Crowdfunding, compared to traditional investment practices, makes investing money both easy and attainable.

Where Do They Get Stock Tips?

Most young people don’t have access to a network of stock analysts or a big financial team. New types of investing tools are taking over, and these tools are available to everyone online. Millennials use social media in their day-to-day lives. But social platforms aren’t just great for sharing photos or asking friends advice on a good place to eat. Young people are flocking to social networking sites for financial advice. While in some cases this may be good, receiving advice from friends, or non-experts online, can backfire. A social investing platform like Betterment can help anyone make smart investment decisions. The investment tool offers advice from an experienced team of experts, information and even automated investing services, taking the headaches out of traditional investing.

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World Stocks Slide On China, Oil Worries

Paris (AFP) – World stocks fell on Monday as a weakening economic outlook for powerhouse China and renewed falls in the oil price prompted a sell-off.

Turnover was muted, however, with many operators still on end-year breaks and the key London exchange closed for a bank holiday.

Wall Street was down 0.5 percent in early business and the Nasdaq fell 0.4 percent.

But Disney shares jumped on “Star Wars” record ticket sales and Amazon gained on higher holiday subscriptions in New York.

Also in New York, February WTI oil futures opened 89 cents lower at $37.21, paring the previous week’s short-lived gains.

European oil stocks and some industrials came under pressure from the twin impact of weak oil prices and ominous slowdown signs from Asia.

In Paris, the CAC 40 extended opening losses to show a 0.7 percent drop, while Frankfurt’s DAX was off 0.6 percent in mid-afternoon.

US and European markets had refrained from major swings in their final sessions Thursday before the festive break, avoiding fireworks after heavy volatility in the preceding days.

“The between-the-holidays period has never been much of one for big movements in the financial markets,” said Barclays Bourse analyst Philippe Cohen.

In Asia, markets broadly fell as a decline in profits at China’s industrial firms reignited worries about the world’s number two economy, but bargain-buying helped Tokyo snap a five-day losing streak.

Industrial profits slid 1.4 percent to 672.1 billion yuan ($104 billion) in November, according to data released on Sunday by China’s National Bureau of Statistics.

“We see weakness across industries, with few signs of improvement,” Steve Wang, chief China economist at Reorient Financial Markets in Hong Kong, told Bloomberg News.

The fresh figures weighed on mainland markets with Shanghai down 2.59 percent and Shenzhen off 2.18 percent by the close.

Shares in China Telecom dropped as much as three percent after news its head was under investigation for “severe disciplinary violations”, the latest high-profile target in a corruption crackdown.

On currency markets the dollar rose to 120.53 yen from 120.19 on Friday in Tokyo, as investors bought back the US currency after it hit a two-month low against the Japanese unit last week.

A weak yen is a plus for Japanese exporters, as it boosts their repatriated profits and competitiveness overseas.

Dealers largely ignored a 1.0 percent decline in Japan’s factory output in November — after two months of gains — announced by the government shortly before Tokyo opened Monday morning.

The disappointing data comes after separate figures last week showed still-weak inflation and household spending, as the world’s number three economy struggles to stage a recovery.

– Key figures around 1445 GMT –

Tokyo – Nikkei 225: UP 0.56 percent at 18,873.35 (close)

Hong Kong – Hang Seng: DOWN 0.99 percent at 21,919.62 (close).

Sydney – S&P/ASX200: closed Monday for public holiday

Euro/dollar: UP at $1.0974 from $1.0965 Friday in Tokyo

Dollar/yen: UP to 120.28 yen from 120.19 yen Friday in Tokyo

New York – Dow: DOWN 0.5 percent from Thursday at 17,471.43. Closed Friday for Christmas.

London – FTSE 100: UP 0.2 percent at 6,254.64 Thursday. Closed Friday for Christmas and Monday for a public holiday.

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US Stocks Rise As US Growth Meets Expectations

New York, Dec 22, 2015 (AFP) – Wall Street stocks opened higher Tuesday after US data showed third-quarter economic growth in line with expectations at two percent.

Five minutes into trade, the Dow Jones Industrial Average was at 17,302.79, up 51.17 points (0.30 percent).

The broad-based S&P 500 rose 6.12 (0.30 percent) to 2,027.27, while the tech-rich Nasdaq Composite Index gained 11.07 (0.22 percent) to 4,980.00.

The estimate for US growth in the July to September period was shaved from 2.1 percent to 2.0 percent, in part because of lower business investment in inventories.

The report showed personal consumption expenditure, which drives about two-thirds of the activity in the US economy, rose by an estimated 3.0 percent. Barclays rated the consumption spending as “solid.”

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Oil Prices Fall Again As US Rig Count Rises

New York, Dec 18, 2015 (AFP) – Oil prices fell for the third straight session Friday as a higher US drilling rig count added to gloom over a market glutted with petroleum.

US benchmark West Texas Intermediate for January delivery dropped 22 cents to $34.73 a barrel on the New York Mercantile Exchange, a fresh low since February 2009.

In London, Brent North Sea crude for delivery in February fell 18 cents to $36.88 a barrel. Read more

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Buying The Right Penny Stocks. Researching Before You Buy

A good penny stock is one that has either the potential to increase in price or offers a consistent dividend income. This is the same for penny stocks or regular stocks. There are several ways the average person can gauge this information about a stock. First and foremost, check its history. What has the price done in the last year? The last five-ten years? Many stocks show a large price hike in their initial years, and then a large drop. The important thing to ascertain is: has the price remained stable? If it offers a dividend, then its stability over several years is a good sign.

In order to determine if a stock is a dividend producing stock, check its statistics. Every stock buying website has their statistics set up in their own way, but they will all have a dividend yield percentage. If the dividend percentage is 0.0% then this stock does not yield dividends. Also, the search engine on each website should have the option to sort by dividend stocks. It is important to pay attention to the math when seeking this type of stock: A seventy percent dividend yield may seem great. However, fifty percent of a $5.00 stock is $2.50 and seventy percent of $3.00 stock is $2.10 so clearly the stock price hugely impacts dividend yield.

Other ways you can determine how a stock might do is to research the company itself. Read any articles you can find about the company in the news. Read the bio of the company on online. A tip here is that if you find during your research a company is about to release a new product into the market or hopes to within the next year, then it has the possibility of a stock price increase.

Financial statements and price to earnings ratios are also available online and should be taken a look at. Granted, information with penny stocks can be really difficult to come by, but if its available, read it! Compare the stocks to other stocks of the same type, looking in particular for red flags like a bunch of debt. Also, the price to earnings (P-E) ratio may indicate an important difference as well. A stock with a P-E ratio higher than other stocks in the same market most likely will drop before long.

Another technique which may be helpful is to track a stock of interest prior to purchasing. Setting up alerts on any articles related to the company will keep you informed on the stability or the potential of their stock. Does the price stay stable over a period of time, or is it jumping significantly from day to day, week to week? If a stable stock which gradually increases in value over time is the goal, then stick with those that don’t jump in price. That’s not always the case in the penny stock world, from what I’ve heard, but I’m going to keep that in the back of my mind.

Use the tools available online to gain as much information as possible. Taking extra time to research before buying can make a great difference in the success of penny stock purchasing. Although information can be scarce, trying to find good penny stocks seems to involve choosing those with as much stability and least debt as possible and paying close attention to dividend yield, stock price, and the history of the company I’m investing in.

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Choosing The Right High Dividend Stocks

As a tool for the creation of a stable residual income, the dividend was the test of time. Studies show that from 1926 to 2004, dividends accounted for 35% of shareholder value. But to increase after the addition of the strong impact of the reinvestment of dividends and composition, the dividends of more than 25 times the price.

To buy during the tech bubble / dot.com boom of the late 90s, many investors ignore dividend yield to find the best stocks. But that is no longer the case, as now, “Today, many high-tech companies also started to pay off.

In fact, since 2003, told CNN that “There were over 100 dividend increases and initiations in high-tech companies, from 4 cups of dividends. Initiating dividends helped these companies have the confidence of investors shortly after the bursting of the Internet bubble to get it back. “

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