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It is useful to have a trusted penny stock broker

It is useful to have a trusted broker that helps you buying penny stocks online. To choose a brokerage firm, you should be sure that their operating is legal. There is no need to be entangled with a firm that potentially has any problem with the law. Also, you should search for broker with a proven revenues, sound business model, low debt load and good management team. You may cost a lot of money when investing in penny stocks if the broker charges you for balance, inactivity and cancellation. So you better ask your broker about these fees ahead of time to avoid such surprises.

Choosing a good penny stock broker can be difficult due to the number of online stock brokers that available to pick from. Determining your best option depends on your particular needs and your expected use of the broker. You have to check various broker websites to see the features that they will offer, and to know what is the sign-up incentives that you might be eligible for. Also read their fine print because this is the place where hidden fees are put.

Many penny stock brokers now offer services online, providing real time feedback to help you with investment opportunities. This will give you the power to make informed decisions without losing too much time in putting together all the pertinent research. The best penny stock broker will offer flexibility and knowledge, helping you make the best choices when it comes to penny stocks despite their investment background.

Buying and selling penny stocks sometimes requires working with a good stockbroker. But, many brokers have no interest in low-value stocks; they charge an increased commission to discourage clients from trading penny stocks. Try to find a broker who is willing to work with you instead of cutting into your bottom line.

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Endonovo Therapeutics Inc. (ENDV)

Endonovo Therapeutics Inc. (ENDV)

Endonovo Therapeutics Inc. is a biotechnology based company aiming at development of bio-electronic approach for regenerative medication. The company has a market capitalization of $5.85M and aims at recollecting higher volumes of stocks to produce better results.

Endonovo’s Immunotronics is their platform to prevent/treat the vital organ failure with regeneration procedures. It performs the expansion and manipulation of cells for cell therapies and tissue engineering. The device is non implantable and non invasive.

Endonovo’s Cytotronics platform uses bioelectric technology for creating the cell therapies and producing fully human bio-molecules for growth factors. The technology is bio-electronic in nature as it makes the use of EM pulses for delivering electrical stimulation through inductive coupling in the nervous system and cells. It is indeed the unique approach for doing treatment for acute inflammation. There are studies made to target inflammatory conditions with exclusive treatment for liver inflammation.

The two platforms are highly successful in creating biologically potent cell therapies. The volume of stocks traded is 12,426,195. The prices have risen in the present scenario, which gives a positive outlook for the company’s growth. The technologies used for the rare complications are also undertaken in the best way for bone marrow and cord blood transplant cases. There can be damage made to skin, liver and gastrointestinal tract can be done with acute GvHD. The aim of the company is to save lives by prevention and treatment of vital organ failure with non invasive bio-electronic medication.

The headquarters of the company are in California, the United States. Endonovo Therapeutics has been revolutionizing the field of regenerative medicine for many years. There is improvement in non implantable and non invasive bio-electronics having capability to prevent organ failure. There is manipulation of body cells done with the usage of stimulated gravity and Electromagnetic Fields. These techniques were primarily discovered and used by NASA.

There is no signal of slow down. There are fluctuations in the market from time to time and biotech experts are doing their best to make R & D for producing the best bio-electronic solutions to acute diseases. If you are looking for the best opportunities to invest in penny stocks, Endonovo provides the best solutions for meeting the challenges of diseases. Trusting medical solutions with technological involvement will always be a best deal. If you’ve got some extra capital and look out for investment, it will be a good option for you.

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How to trade and buy penny stocks

Trading and buying penny stocks has become increasingly popular over the past fifteen to twenty years in Europe and throughout America. More and more people want to get involved with buying penny stocks and trading them to hopefully make a profit. To buy penny stock with success and vigor you must first get a grip on the fundamentals of this kind of investing as it is similar to more conventional investing but it also exemplifies many unique characteristics that almost any new trader should understand before taking the next step forward.

If you want to buy penny stocks then you need to know what a penny stock is. A penny stock is essentially a low-cost stock that trades for less than about five dollars a share on over the counter quotation services such as Pink Sheets and the OTC bulletin board. Although many argue that penny stocks are not traded at high volumes, many penny stocks exemplify high trading volumes somewhere in the neighborhood of the hundreds of millions. Penny stocks are ultimately high risk investments that can make their investors a lot of money but at the same time can cost an investor who may have been speculating their entire bankroll if they’re not too careful.

If you want to get involved trading and buying penny stock then it is always best to educate yourself first before you actually start trading. It doesn’t take that long to learn the fundamentals of penny stock trading but it is important that any new investor first get a grip on such vital information because it will serve them well going forward into the future. Once you have educated yourself to the point that you feel that you are ready to trade penny stock then you simply need to open an account with a brokerage, make a deposit and start trading.

Some of the best brokerages allow you to open an account online and use their online software to make trades thus taking the human element almost entirely out of the picture.

You should be careful though because trading this way is so easy, and it can become easy to overlook the fact that you are dealing with real money and not just pixels on a screen. In the end you should just remember that to succeed with trading penny stocks you must learn to make smart and strategic decisions over time, and if you can do this you should have no trouble eventually making a profit with penny stocks.

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Cheap Penny Stocks high risk?

Brief explanation

Cheap penny stocks basically highlights all the important features of penny stocks and at the same time give the description of how to trade penny stock. The cheap penny stocks are generally in very basic terms described as the stocks which have the shares which are generally traded for a value of less than $ 1. On the other hand they are also known as the stocks, which have shares which trade for a value of less than $ 5 per share. These stocks does not have a well defined definition, but are most commonly defined as the stocks which are priced at a lower rate and are always supported by the company with a low market capitalization value. It is hence very important that you do a good research on how to trade penny stock.

Some insight

Cheap penny stocks highlights each and every aspect and the information related to penny stocks for all its customers and also at the same time gives an idea on how to trade penny stock. The cheap penny stocks are regarded to have a low liquidity value, which means that once a penny is bought, the selling of the penny will not be an easy task but that again depends on the market conditions. A customer should always be well aware of the fact that there is always a high risk which is involved in penny stock, but the positive side is that the rewards associated are always high. Sometimes an individual might get lucky and get a huge profit for a small investment.

The cheap penny stocks newsletter is the best source which keeps all its customers updated with the different market conditions, guides them how much amount to invest in which scheme, the best time to invest, how to trade penny stock etc ,information on the investment related to penny stock.

While reading the newsletter regularly, the customers can be benefitted to a large extend and they might not suffer from losses as these newsletter gives the information which warns the customers not to investment at this particular time in a particular scheme.

The cheap penny stocks newsletter always highlights some of the very basic facts to the customers, like they should not invest in the penny stock without proper preparation and one should take all the precautions, study the market well and conduct a considerable good amount of research to avoid all such mis – happenings. In order to earn profits in the area of penny stock, an individual should lay stress on some of the important key points namely: firstly one should have a good understanding of the nature of the penny stocks, secondly an individual should spend some time and make a trading strategy and finally one needs to be alert and figure out the right picks for the penny stock in order to execute the planned strategy.

One should regularly try and read the matter related to cheap penny stock regularly in order to have an understanding of the nature of the penny stock, how to trade penny stock and the market and he should be able to predict the nature of the penny stock in the coming future and if one gets a hang of the market, he can gain huge profits in just few minutes for example if a stock is of one cent, a sudden rise in the market can increase its value to approximately five cents as a result the individuals profit becomes five times.

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Purchase price of penny stocks

The purchase price of penny stocks is generally very low, sometimes less that a penny, which is why they are known as penny stocks, but as well as being relatively inexpensive, they are also very volatile and their value can rise and fall very quickly. Unlike the stocks and shares of large companies whose value rarely falls precipitously in a very short space of time, penny stocks are often considered a risky investment, which makes it vital that you do some research before you consider going through your life savings into the penny stocks market.

In order to consistently make money on penny stocks, you need to devise a good system for buying and selling. There are lots of penny stocks scams out there, so before you invest any money in penny stocks, always spend a little time doing some research on the company in question to make sure it is a good prospect. Be very wary of get rich quick emails and newsletters supposedly from reliable and unbiased sources and if an investment opportunity sounds too good to be true, it is usually a scam.

Knowing when to buy and sell penny stocks is the key to making money. Ideally you need to learn to recognize when a stock is about to rise in value so you can buy it before others do. You also need to learn how to recognize the signs that a stock is about to lose value so you can sell it quickly.

Greed is often the downfall of penny stock investing. If your penny stocks double in value it is all too tempting to wait and see if they will triple in value before you sell them on. The big danger with this approach is the value of the penny stocks could soon fall and instead of making a decent profit at double the value, you lose everything. So instead of risking everything for a big profit, always sell a percentage of your stake when its value reaches a predetermined level. That way, if the value subsequently falls, you have not lost everything.

A good approach for new investors is to practice your investment strategy for a few months before risking your money. Do some research into which companies might be a good investment opportunity and then spend six months tracking your investments to see how they fare when you make decisions on buying and selling the penny stocks, just like you would if you had actually bought them. If you make a profit at the end of the period, your research has paid off and it is a good time to put your system into practice for real.

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Penny Stock exchange

What are Penny stocks? Penny stocks are common shares of small public companies that are priced at less than $ 1.00. These penny stocks have very low liquidity. When entering to this penny stock exchange, one should be very much aware of all aspects of penny stock investing and trading. You should read the penny stock guide and also consult your stock broker for investment purposes. Always remember that it’s your money at stake, so take the decision very wisely and patiently. You should know well about where do penny shares trade and how to trade these penny stocks?

Investment in Penny stocks –

There are many legal places where these penny stocks can be traded. Three of them are NASDAQ Small Cap Market, American Stock Exchange (AMEX) and Pink Sheets. These are the safest places to trade the penny stocks as they work on strict compliance policies. The penny stocks cannot be traded in the normal stock exchange but have to be traded in the Over the counter market. The broker is the best person to help you with the trading formalities. You will have to hire him for performing the transaction activities on your behalf. For trading the basic thing that you need to have with you is a bank account with sufficient amount of cash in it as you will have to bear the broker’s commission along with the trading cost of the stock. The next thing you will have to do is to inform your broker whether you want to buy the stock at a market price or you want to a set a limit for it. Market order is the order where you can buy a stock right at the price at which it is available in the market at that particular point of time whereas in the limit order you can set a limit for the stock.

For e.g. If you feel the stock is available at a higher rate at the moment and you want its rate to go down by a couple of dollars and then buy it. In this case, you can set a limit price for the same and as soon as the price will fall down to the rate that you have mentioned, your transaction will be executed and you will be allotted those many stocks at the rate of your choice. In this way, you can earn more profit provided you have a good knowledge about the market and you are sure that the price is going to fall. The experience of the broker matters to a great extent in the investment and trading purposes. He can assist you with the best penny stocks online and also with the buying and selling of the stocks at the right time only when he has good knowledge about the market and is well aware of the market trends from a long time. He should have sound knowledge on artificial penny stocks. This is a form of microcap stock fraud in which the price of a stock is increased with fraudulent schemes and false statements for a limited period of time and when it falls to its original price, people get trapped in it and at times have to bear huge amount of losses.

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What is a penny stock

What is A Penny Stock?

Why I like Penny Stocks and How Penny Stock Egghead Can Help Me

Exactly what is a penny stock? A penny stock is essentially a lower priced stock that is trading at five dollars or less. Penny Stocks usually are not traded in the major stock markets like NYSE, NASDAQ or AMEX. They are usually traded “over the counter” (OTC). As penny stocks are low priced, they can offer an amazing upside potential for small time buyers and investors.

Since these shares are offered at really low prices, they are often good opportunities for small time investors and especially first time investors who are concerned or worried about burning large sums of cash. Because you are only investing small amounts of money. you can check out new markets, without jeopardizing an excessive amount of money. Even if the stocks go down or go totally wrong, you will not have lost an excessive amount. That is why I like penny stocks.

One more reason why folks want to invest in penny stocks is that these stocks are easy and straight forward to buy. They are offered as common shares, and are easily available to the community. They are also listed in the stock exchange markets so that they are obtainable to the general public and investors.

The primary appeal of penny stocks is that there is an opportunity for high profits on your investment. This is especially appealing for small time traders or those with limited budget. It is not unusual for a few penny stocks to double or triple in value within short intervals of time. This is one thing that is almost impossible for the typical stock.

For those purchasing penny stocks, attempting to find the stocks that may be worthwhile in the future may possibly appear like a rather tricky and daunting task but it need not be so. You can get support and information from other people who have done a lot of analysis on penny stocks.

Nathan Gold from Penny Stock Egghead for example, provides great choices every 7 days so that all you need to do is to adhere to his advice. At most you only require to validate his claims. It cuts down a lot of the work that you would have to do trying to go through large number of penny stocks to find those that are promising.

Penny Stock Egghead is a useful membership for anyone intending to invest in penny stocks as it not only provides some useful advice pertaining to penny stock investing, it actually makes a stock pick every 7 days with all the relevant particulars for you to study so that you can decide whether to invest in that particular stock or not. Of course, with all the investigation done going through hundreds of stocks to choose one, it would suggest that every penny stock featured has a significantly greater potential than others to do very well.

Actually, Penny Stock Egghead’s results over the past two years have been amazing and astounding. With this Penny Stock Egghead to guide me in my choices on what to purchase, I’ve had many good gains consistently with some stocks giving me over 500% profit. I would never have been able to achieve that with bigger cap stocks.

Since this Penny Stock Egghead has made many successful picks before, It is having a growing and expanding subscribers base with many devoted fans. I, for one, am a dedicated fan as I have had numerous profitable deals using their picks. If you’re thinking about getting involved with penny stock investing and hope to get these high-potential penny stock picks, do check this out.

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American Jianye Greentech Holdings, Inc AJGH

American Jianye Greentech Holdings, Inc

AJGH

AJGH Chart:

Currently Trading:  $0.97

AJGH is a manufacturer and distributor of “alcohol-based” automobile fuel products in China.   AJGH is currently selling its ethanol fuels at an incredible pace and is rapidly expanding its manufacturing capacity to keep up with enormous demand.  AJGH recently landed $75 Million from the Chinese government to build new plants capable of  ‘catching up’ to the increasing demand in China for Ethanol.

While the U.S. has been rather slow in jumping on the ethanol movement, demand for Ethanol fuels in China has absolutely skyrocketed.  Roughly 20% of all Chinese automobiles (millions and millions) currently run on Ethanol.  That number is expected to grow significantly in the near future.

ETHANOL DEMAND – WORLDWIDE RECESSION?

In spite of the global recession, car sales in China have increased 20% this year alone, with no signs of slowing down.  In fact, China’s top 30 car makers plan to more than double the annual production of units (cars) to more than 31 million new cars per year by 2015.

The car market is absolutely surging in China.   45% growth in 2009, over 20% growth so far in 2010, and those numbers are only expected to increase over the next 3 years.   China is going through an automobile ‘golden age’ right now!

AJGH – INCREASING ETHANOL DEMAND

In the second quarter of this year AJGH announced expansion plans to build 2 new ethanol plants, one in Hong Kong, and the second in Northern China in order to keep up with ethanol demand.  AJGH received $75 Million in loans from the Chinese government to increase production of Ethanol!

With the numbers of new car sales increasing rapidly (more than 1.2 Million new cars per month) combined with dwindling petroleum reserves, the Chinese government has seen the importance of alternative fuel to power their rapidly growing economy.

Right now China is burning over 70 Million tons of gasoline a year, and 20% of Chinese fuel is coming from ethanol.   This means that just to SUSTAIN their growth, China needs to produce 14 Million tons of ethanol to keep pace!

Currently China only has the capacity to make 2 Million tons per year!  China needs to increase production of Ethanol by 700% per year just to ‘break even’!

This is why the Chinese government granted AJGH $75 Million in loans to build new ethanol plants!

China is heavily banking on AJGH to produce the massive amounts of ethanol needed for the country just to ‘keep pace’ with their current needs, let alone keep up with rapid growth!

This is basic ‘supply and demand!’   When supply is low, demand increases, pushing prices through the roof!   AJGH is slated to increase production by over 150% by the time their plants come online in early 2011, and China will already be burning more ethanol than local distillers can pump out.

This puts AJGH in a perfect position to capitalize on massive increases in the price of Ethanol, due the laws of supply and demand!  No other ethanol company is in a better position with the rapid growth, rapid sales increases, and the Chinese government backing them with $75 Million!

AJGH is a relatively new company.  Started in late 2009, the company went from $0 in sales, to $30 Million in sales in 6 months!    Recent third quarter earnings for 2010 we’re nearly 10 times what they were the year prior.    Current projections put AJGH at over $90 Million in sales by the end of 2010!   Off the top of my head, I can’t even think of a company that started off like AJGH!

I love AJGH’s long-term potential, as it appears that the ‘buy and hold’ investors have really been battling it out with short-term investors betting on the future of AJGH.  So far, the long-term investors are winning.

In the immediate short term, I expect AJGH to rally through the week on nothing short of spectacular earnings announcements, and would not be surprised to see it move another 30% in the next few days.

Trading was extremely strong on Monday and I see this trend continuing as more and more investors discover AJGH.  Right now AJGH is still relatively unknown, but this week it will certainly be in the spotlight, as there doesn’t appear to be any serious competition for AJGH to absolutely dominate future Ethanol production in China.

China could not be a more perfect place for AJGH as the economic/environmental situation is absolutely ripe to become a major player in China.

AJGH has enormous upside, and is still available under $1 p/share.  I really don’t see it staying under $1 for much longer.

All the indicators point to AJGH on the verge of a move this week, and the increased exposure it received yesterday is only going to bring more serious investors to the table who are looking for an undervalued stock with a ‘sky-is-the-limit’ future, like AJGH.

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Nuvilex Inc (OTCMRKTS:NVLX)

New Trade Alert: Nuvilex Inc (OTCMRKTS:NVLX)

Hello Traders

Hope you had a wonderful trading day. the pick we promise to bring you after the close today is ready. With a strong momentum going into the stock we think we can see it break new highs.

We at Nuvilex believe and uphold our motto, “Good for You, Good for the Environment.”

Our Origins…..

Founded in 1996, as a Nevada Corporation, DJH International., Inc., the Company was renamed eFoodSafety.com, Inc. following acquisition of Global Procurement Systems, Inc. in 2000. Ozone Safe Food, Inc. was acquired in 2003 and set an early mission to provide methods and products for sterilization with worldwide software tracking of safely marketed fruits and vegetables.

In 2004, eFoodSafety.com began trading on the OTC Bulletin Board (OTCBB) under the symbol EFSF. Within a year, Knock-Out Technologies, Ltd. (KOT) and MedElite, Inc were acquired. Through use of organic, non-toxic, food-based ingredients, KOT developed products designed for the treatment of nutritional deficiencies, diseases, and environmental purposes, including Nuvilex’s flagship products Cinnergen and Cinnechol, and the developmental products Citroxin and Oraphyte. MedElite, on the other hand, owned Talsyn™-CI/bid Scar Cream, a product used for treatment of keloids, erythema, and scar management, and NumaDerm™ cosmetics, now being reintroduced from the Nuvilex developmental drawer and available shortly.

As a result of these acquisitions, the Company’s entire strategy was changed forever to become one of developing and marketing products for improving the health and well-being of our customers and are part of our true and basic mission, “Good for You, Good for the Environment.”

After Ozone Safe Food, Inc. was successfully sold in 2005, eFoodSafety.com, Inc. formed four wholly-owned subsidiaries each responsible for development, manufacture and marketing of a major product including:

  1. Cinnergen, Inc. for Cinnergen™, a non-prescription nutritional supplement to promote healthy glucose metabolism, and is expanding sales for this valuable natural product.
  2. Cinnechol, Inc. for Cinnechol™, a non-prescription nutritional supplement to promote healthy cholesterol, triglyceride metabolism, and promotion of cardiovascular health, and has reinitiated sales for this great natural product.
  3. purEffect, Inc., for purEffect™, a four-step, non-prescription acne treatment. In 2006, the marketing rights to purEffect™ were first licensed and later sold to Charlston Kentrist Direct 41, Inc. [CK41] and 2009. It is a pleasure to recognize CK41 in successfully marketing purEffect™ (http://www.pureffect.com/), with support from testimonials as well as famous individuals including Carmen Electra, Tiffany Giardina, Larzz, Molly Sims, and Estella Warren. Nuvilex will be receiving royalties in the future and have and continue to look forward to a good relationship with CK41 and their management.
  4. I-Boost, Inc. for a food supplement bar designed to improve the effectiveness of the immune system, which was eventually closed due to insufficient consumer interest.

In 2009, eFoodSafety.com, Inc. acquired Freedom-2 Holdings, Inc., the manufacturer of Infinitink®, a heavy-metal-free tattoo ink designed to be more easily removed than traditional inks. As a result, eFoodSafety.com, Inc. was renamed to Nuvilex, Inc. and changed to NVLX on the Bulletin Board (OTCBB). Between September 2010 and February 2011, a new management team was assembled and as a result, Nuvilex (NVLX) was listed as fully reporting on the OTCQB stock exchange where it presently trades at approximately 4M shares per day and has hit new 2 year highs over $0.076.

Since January, the new management at Nuvilex has begun substantial efforts to add to its success by expanding into the biotechnology arena. As a result, a new acquisition of a pancreatic cancer treatment technology will initiate our growth and expansion into this area. The present status of this includes completed initial clinical trials in Europe with multiple directions for forward movement which are presently in the planning and initiation stages. Your new management, through their ongoing activities, believes will create a paradigm shift for Nuvilex into becoming a true Biotechnology and Natural Products leader. These actions are well underway and should provide excellent opportunities going forward. Dr. Robert Ryan stated, “Many more dramatic and exciting events are still to enter into our story, yet, they will be in keeping and allow us to stay true to our philosophy and motto…”

“Good for You, Good for the Environment.”

We At Nuvilex Are…..

a vibrant, exciting and energized company with a strong legacy in the development of products with a particular focus on natural components and biotechnology for human, animal and environmental health. In addition to Cinnergen™, Cinnechol™, Talsyn™, and Infinitink® mentioned above, our line of natural products includes Cinnsational™ for reduction of detrimental alcohol effects, NumaDerm™ cosmetic products, Reme-Flu™, a flu-combating 2-part homeopathic regimen registered with the FDA and licensed from Legacy Biotechnologies, Inc., and Virgin® Ink, a heavy-metal-free tattoo ink. Citroxin™ and Oraphyte™, antimicrobial and antinematodal agents are being worked on and planned for advancement by the end of 2011.

In addition to solidifying and expanding our natural product lines, Nuvilex is making important strides to expand its presence into the biotechnology arena. Already in 2011, the initial early development of the Company’s first all-natural anticancer agent, Alternia™, was announced. Plans are being created to move Alternia™ forward in our pipeline. In addition, Nuvilex is in the final stages of acquiring valuable cell technology to allow for individualized treatment of a variety of human diseases, including pancreatic cancer, one of the most deadly forms of cancer, unfortunately usually discovered in a late-stage and thus making it a difficult-to-treat disease.

In summary

Nuvilex’s mission has been and continues to be to develop, manufacture, and market products that are “Good for You, Good for the Environment.”

Nuvilex is a cutting edge, innovative Company whose aim is to initiate a paradigm shift, generating revenue at the same time as creating cancer and other cell related solutions to treat important human diseases, such as pancreatic cancer while retaining our connections to natural products. The present effort underway will give rise to dramatic advances in cancer therapy and benefit millions of people worldwide.

All of our products have been, and will continue to be, developed through the use of natural products and/or biotechnology in order to assist people in the pursuit of a healthy body and to improve the environment around us all. We invite you to learn more about Nuvilex and our products and plans. Thank you for visiting. Have a great day!

Recent news.

Nuvilex, Inc. Readies Pancreatic Cancer Treatment for Expanded Phase II Clinical Trials

SCOTTSDALE, AZ — (OTC Disclosure and News Service) — June 6, 2011 — Nuvilex, Inc. (OTCQB: NVLX) announced today it is aggressively engaging the steps necessary to use its encapsulated cell technology for pancreatic cancer in expanded Phase II clinical trials in the United States, Europe and Australia.  The Company’s objective is to have a protocol submitted to the regulatory agencies in these countries as quickly as possible.

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Penny stock guide Ch. 15-20

CHAPTER 15

HOW TO PICK A Penny Stock BROKER

Now, the question arises is HOW DO I PICK BROKER?

You should first decide whether you want a telephoning broker or he should be an online broker as well. Then next you should find the following factors.

  •   Quality of information
  •  How fast is the execution of trade
  •   The markets available
  •   Costs attached with them
  •   Check how much equities they would pay
  •   Would they provide with CFD’S
  •   How much fees would he charge on the unused cash in your trading account
  •   How much discounts. Penalties will be there on frequent /infrequent trading.

WHAT ARE THE QUESTIONS YOU WILL ASK DISCOUNT BROKERS

How much do they charge for buying and selling shares? Do they have any subscription fees How do they buy and sell shares Do they deal with telephone and internet both? Do they offer trade discounts Do they offer and added services like alerts, dynamic market data etc.

CHAPTER 16

GOLDEN RULES OF BUYING SHARES

9 golden rules of buying shares

1. STICK TO THE RULES- Always remember that the stock prices would go up and down, what is needed is to stick to your strategy which you have planned. Swaying away from the rules would only bring losses.

2. DIVERSIFY — Do not invest all your eggs in one basket; invest in various sectors not just the one which is mining.

3. BUY SHARES THAT SUIT YOUR TRADING CYCLES — if you are buying shares for a long term it definitely wont suit you if you are short term trader and it goes other way also… short term shares wont suit the long term trader as well.

4. KNOW YOUR RISK TOLERNACE — A speculative share has a different risk profile as to out of favor  ” blue chip “.Allocate your capital according to your own risk tolerance and the risk profile of the trade.

5. DON’T RUSH IN — The market will be still there waiting for you when you are ready to trade. Learn about the market before you start trading particularly the new investors. The best way to start is with the PAPER TRADE, so as to learn the basics first.

6. DO NOT GET GREEDY — Don’t think that you will be a millionaire in a day, be practical and not over realistic. Don’t think it’s very easy, as it’s very easy to lose money also in the trade market.

7. ONKY INVEST WHAT YOU CAN AFFORD TO LOSE — if the shares are the cause of your worries then definitely either you have invested in the wrong ones, or you have far too many to handle, so SELL them , nothing in the world d is more important than your peace of mind.

8. NEVER EVER CHASE SHARES — exercise patience, never run behind the shares and purchase beyond your limits, because the time will definitely come when you will be able to buy them within your limits.

9. KEEP ACCURATE UP TO DATE RECORDS- The most important of all, for penalties for not declaring your profits and not paying the capital gains are too much high. So stick to the rules.

CHAPTER 17

STOCK MARKET INVESTING TIPS

What should you do to be successful in the stock market, may be the following tips would help you

HAVE A PLAN

If you want your money to grow, wealth to multiply then the first thing you need is a full proof and solid strategy plan. If your plan is not good then you would just end up fixing your errors.

INVEST REGULARLY

Investment in shares is not a onetime game. You should keep on investing if you want to yield good profits.

LOW COSTS

Frequent trading would definitely add up to costs. Certain fees are always there which you need to pay, but do not indulge yourself into counterproductive things, which ultimately would make you use up your profits too. Best is to stick to the basic low cost transactions.

DO NOT BUY TOO MUCH AT ONCE

Try to buy at a certain amount and a certain period of time, which will give you advantaged of best prices. Hence if you want to invest to do not invest at a time, do it over a time frame of days, weeks or months.

DIVERSIFY

It’s the most important and vital thing to diversify as it would help to minimize the risk. All the types of investment, goes thought the cycle of setbacks ups and downs… hence you should diversify to earn profits in long term.

DO YOUR REASERCH

Before you decide to invest choose the right industry and in that choose the correct company. It would take a little bit of time but, do your homework properly before investing because it’s ultimately your hard earned money you want to invest for betterment.

NO EMOTIONS

The most basic thing of investment is, you have to keep emotions aside what it needs is cool, calm and balanced mind.

KNOW YOURSELF

You should now yourself about the market as well as which stock is good, if you are not able to do that than its always advised to have a professional do it for you .yes, we definitely talked that we should keep our costs low, but in this respect it’s always good to have someone manage your trade if you are ignorant about it,

CHAPTER 18

DIFFERENCE BETWEEN STOCKS AND SHARES

For the first time investors it is difficult to decide where to invest his money .which option to select and when all the information seems to be confusing. In that the most common question asked is what the difference between STOCKS and SHARES is.

In today’s financial market, the distinction between the both is somewhat blurred, however

STOCKS mean ownership of certificates in multiple companies. You may not be only the stockholder but also the shareholder for each particular company as well.

SHARES mean ownership of certificates in a certain company. It makes the person the shareholder of that company.

The common misconception about stocks and shares is that they are different things. In reality they are the same thing but are referred to differently when talking about more than one company.

DIFFERENCE BETWEEN STOCKS AND BONDS

Sometimes it’s difficult for the new investor to differentiate the difference between the two. If I must say so, there are people who have been investing for a long time, but still they have not been able to articulate the difference. People think that stocks are more riskier then bonds and basically it is true also,

STOCK means ownership of certificates in multiple companies. The price to the stocks will actually depend upon the performance of the company. If company is doing well you will share the appreciation, but if the company has gone in loss, then u will equally be sharing the loss.

BONDS are “credit “given by the investor to the company. It’s a kind of loan provided to the company to carry on their activities. The percentage the investor gets is fixed.

The shareholder would stick to the shares even in bad times and would expect that the company would do better in future, but the bondholder is just concerned with his initial amount and the interest from the company.

It is possible that investor has invested in a small and a risky company and if the company shuts down then the bond holder has to lose his initial investment as well, but this happens in a rear case.

So what would be a wise investment BONDS OR STOCKS?

Well. It depends on the person personal decisions and what is his risk tolerance. Though the ideal long term portfolio could be a blend of little bit of both.

CHAPTER 19

FUNDAMENTAL ANALYSIS

It is always been a difficult and a confusing decision as to which stocks to buy. The financial analysts heavily depend to the Fundamental analysis at that time.

Fundamental analysis is looking at the basic or the fundamental financial level. It helps as key to determine the company’s health and gives the idea of the value of its stock. Fundamental analysis is the cornerstone of investing. Its core objective is to do the financial forecast of the company

To conduct companies stock evaluation

To make projections about its business performance

To evaluate its management

To calculate its credit risks.

TECHINCAL ANALYSIS

Technical analysis forecasts the future directions of the prices, through past data and market trend. It ‘ignores’ the actual financial condition of the company, market currency, it just solely goes by the “charts “that is the price and volume information only. It is just not limited to charting but it also considers price trends.

Technical analysts believe that the investors collectively repeat the behaviors of the investors who preceded them. While it will take long time for the technical analyst to be picked as the one to manage your trade, but certain financial institutions and banks are using them as tools.

CHAPTER 20

FAQ ‘S

If I buy, when should I sell?

Stock market is a creature in and of itself. When will the bull market is going to change to bear market is anyone’s guess. Hence, we should hold the shares which are stable and are moving up. When you see the company’s shares you have taken are dropping, dipping continuously, then I guess it is time to abandon the ship from those share, meaning it would be wise to sell those shares which are falling in price.

How many shares should I hold?

If they are fewer the better it is good to be diversified, but you should hold that many share that you can manage, and handle on your own. What is the point of holding 1000 shares and If you cannot know them all… instead it’s better to have 25- 30 which are manageable.

How can I buy and sell my shares tax efficiently?

You will be able to do this inside a self select Isa

Most of the brokers provide you with this facility where they give you an empty Isa wrapper. You have to fill it pound 7000 worth of shares and then trade tax free. All capital gains you make will be tax free.

What are Penny stocks?

There is no set accepted definition for the Penny Stock. Some define it as stock priced under 1$ and some say 5$. They are actually type of stock that generally trades at very low value and market capitalization. They are highly speculative and have high risk due to lack of liquidity. They are generally traded over the counter (OTC) and on pink sheets.

What is buying on margin?

A risky technique where in you are buying stocks with borrowed money from the broker. You can term it as a loan from the broker to buy the stocks. In this it allows the investor to be paid the fractional amount and the rest in borrowed from the broker. The broker sets a margin account with you and also charges you with brokerage on the loan and you have to pay interest as well. They can also hold the shares as collateral against the loan you have taken and can take the stocks, if you become a defaulter.

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