An insight into the actual situation of the company prompts the investor to make judicious investments. You can open your best demat account with a stock broking company and keep track on your investment options.
Why You Need to Have Informed Decision?
The risk factor is always lurking behind these investments. It could be a case that the buy low and sell high strategy does not work, that the market does not soar high as forecasted. In this case huge losses can meet your investments. It can also be a possibility that the stocks of the company that is deemed to be performing well, do not meet the expected surge in price or that the company rather than progressing starts retreating. So, the risks cannot be ignored at any cost and it is also a fact that the long term predictions about the market, company etc. might turn out to be true, short term ups and downs are reasonably difficult to foretell. So the financial advisors mostly speak the lingo of long term investments so as to ignore the short term impediments. They recommend share market app to invest in stock market.
Why You Pay Extra to Financial Experts?
It is advised to take guidance from a good financial advisor before making any investment. For a colossal loss in investment is potent enough to ruin the entire life of the investor. Paying extra rupees to experts save lots of money in terms of stopping losses and incurring profits.
Why Smart Investors Invest in Penny Stocks?
Penny stocks are securities traded at minimal pricing. These stocks are mostly offered by companies with lower market capitalisation rates. They are also called nano-cap stocks, micro-cap stocks, and small-cap stocks, depending on the company’s market capitalisation.
Types of Returns
High Potential Return
Penny stocks have propensity to fetch more profits. They come under high potential return. When you trade Penny Stocks, there is a potential to multiply the value of your Stocks many times over. In fact, there is a potential for the prices of your stocks to double within 24 hours or less.
Unlike blue-chip Stocks where a 60% increase is considered a big profit already, such is considered normal when you trade Penny Stocks. And, unlike binary options where you can gain 90% but has a much higher risk, trading Penny Stocks can make your money grow by more than 500% within a short period of time. Also, since the Penny Stock market is mostly composed of small businesses, there is a high probability for the value of their Penny Stocks to grow, since small businesses have a lot of space for improvements.
You can have thousands of Penny Stocks for a small amount. Having a high volume of Penny Stocks is good, especially if you get them from a start-up company that is doing well.
Low or Controlled Risk
Penny Stocks are inexpensive. You do not have to purchase a lot of Penny Stocks to earn a decent amount of profit. You can also diversify your Stocks to help minimize your losses. And, unlike trading binary options where you will lose your whole wager when you make a wrong investment decision, you can still keep your Penny Stocks and sell them. If you are patient enough, there is really no such thing as a permanent loss. Considering the volatility of Penny Stocks, even if the value of your Penny Stocks decreases, there is a good chance that it will increase after some time.
You can join free courses online with certificates to become stock trading expert.