Blog - Online Penny Stock Trading

Diversify Your High Return Investments

Everyone wants to invest in high return investments, but if you continue to put money into the same type of high return investments, just because it has been working for a while, you may run the risk of having everything suddenly come crashing down on you. Instead, it is better to diversify your high return investments. This way you will have a better chance of long-term and lasting success.

There are a few different options if you are still looking for high returns, but you want to diversify. One option is high return stocks. Unfortunately this method takes some skill for picking the right stocks.

Another option is high return mutual funds. If you don’t feel comfortable choosing these mutual funds on your own, work with a personal broker. The trick to making this work is to find a broker who makes his money from the value of your account instead of a broker who receives a flat fee. This way he has incentive for making you more money as he’ll be making more money too.

Penny Stocks Are For Trading

by Charles

On average penny stocks lose value over time. Buying penny stocks and holding on to them is risky for a few different reasons. Finding solid information on these companies is often difficult. The requirements for penny stocks are less stringent than they are for other stocks and often public information on these companies is scarce. They are also quite volatile, and their volatility can be quite difficult to predict. Then there is the complication of volume. Penny stocks are often thinly traded, so it can be more difficult to buy or sell the amount of shares you would like.

So why do people still dabble in penny stocks? If you can learn how to day trade you can reduce the risk of time by not holding onto them for too long and use their volatility to your advantage.

Red Flags to Watch For When Evaluating Penny Stocks

by Charles

Penny stocks are risky, but that doesn’t mean you shouldn’t have any in your investment accounts. There are certain stock screens you can use to help weed out bad penny stocks. These tips should be used as part of your initial screening process along with other technical and fundamental screens to pick your list of acceptable penny stocks. Keep in mind these screens won’t be as useful once you have already invested in a stock, but they may save you some heartache upfront.

Dividend Mutual Funds Aren’t All the Same

by Charles

Not all dividend mutual funds are the same. You don’t want to get caught in the trap of thinking investing for income is good enough. The source of the income can also make a big difference on your risk and your overall returns. A dividend mutual fund doesn’t just hold high dividend stocks. They may hold traditional blue chip stocks that aren’t the best of dividend yielders, cash, bonds, and real estate investments. If you want to make the most of your investment dollars you need to learn the differences between different types of dividend mutual funds and other investing vehicles that provide similar return profiles.