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what is it? | Mysite

what is it?

Stock market is where investors connect to buy and sell investments – most commonly, stocks which are shares of ownership in a public company

 

it’s a place where shares of public listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.

A stock may be bought or sold only if it is listed on an exchange

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Micro cap large cap

Micro cap

A micro-cap is publicly traded company in the United States that has a market capitalization between approximately $50 million and $300 million.

Micro cap companies have greater market capitalization than Nano-caps, and less than small mid, large and mega cap corporation. Companies with larger market capitalization do not automatically have stocks prices that are higher than those companies with smaller market capitalization.

Companies with less than $50 million in market capitalization are frequently referred to as nano caps. Both Nano caps and micro caps are known for their volatility, and as such, tend to be considered more risky than companies with larger market capitalization. Market capitalization measures the market value of a company’s outstanding shares, calculated by multiplying the stocks price by the total number of shares outstanding.

 

Many micro-cap stocks can be found on the ‘over-the-counter”(OTC) market, such as the OTC Bulletin Board (OTCBB). And the OTC link LLC (OTC Link), rather than national exchanges such as the New York stocks exchange (NYSE).

Large cap (sometimes “big cap”) refer to a company with a market capitalization value of more than $10 billion.

 

Large cap is a shortened version of the term “large market capitalization" is calculated by multiplying the number of a company’s shares outstanding by its stock price per share

Large cap stocks represent 91% of the total U.S equities market as measured by the Wilshire 5000 total market index. As of June 29, 2018, the index had 3,486 stocks representing the entire U.S equity market universe.

Volatile

High volatility penny stocks are the secret to my trading success. There low priced stocks are characterized by rapid and significant price shift. Yes, they can be risky… but they can also potentially have opportunity as well

 

Rapid price movement, when it comes to penny stocks, you’re not necessarily looking for stocks that are moving slowly and steadily over months. Rather, you’re seeking out stocks that are spiking rapidly, even within the course of a day

Biggest gainers and losers. If a stock has been a big gainer or a big loser, it could be a sign that a high volatility penny stock

As I’ve learned over time if you play things right, do plenty of research, and have a good trading plan in place, you can take advantage of the rapidly changing stock prices, both on the way up and down

 

This is important: volatile stocks have a higher level of risk than more stable and slow moving stocks

For some traders, this can be a real turn off. Why would you want to engage in a risky investment strategy? The answer is that with risk comes reward.

There are few opportunities and benefits trading volatile stocks

Opportunities for traders with smaller account. There are a reason why both volatile stocks and penny stocks are dismissed by many affluent investors.

The volatility makes them undesirable as they are scared of losses, so they focus on what they deem more investments that are a lower moving. Of course, they have large account that allow for larger investments and slower movement.

If you have small account, high volatility penny stocks provide you the opportunity to grow your account quickly

That fact that there are fewer institutional investor involved means there less competition and plenty of room for trader like you and me to grow

This how I earned my money, and it’s the method of trading I focus more on trading

Attractive entry prices. Let’s be real. One of the biggest advantages of penny stocks in general is their low price. They are accessible to investors of all level, even if they have a starting account of $500

The entry price of penny stocks, particularly highly volatile ones, will be attractive. This can make it not only possible but highly tempting to just buy a ton of shares and see what happens, but I want to take a more calculated approach

You need to put together a detailed trading plan so that you are not just betting that this $0.50 stock will go up. Even though your losses might be small, they mount over time, and it is important to set up good practices.

Stretch up your techniques, whether you’re trading a stock that cost a dollar per share or $1,900 per share, the basic ideas of picking a stock remain constant.

You need to be looking at company in question with your fundamental research, and to be researching the stock action with technical research. This is how you identify companies that have great growth potential yet steady enough growth to warrant a buy in

As your knowledge and your account both grow, you can scale up there techniques. This means that the same skills you develop trading high volatility penny stocks can be applied to larger position in the future.

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iworthsaving.com is for entertainment & educational purposes only. Material shared on this blog does not constitute financial advice nor is it offered as such.

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