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How to Make the Most of Penny Stocks with Minimum Risks Involved?

A common stock share is usually priced at less than a dollar

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Penny Stocks, Risks, Time
Penny stocks are low priced shares. Pixabay

If you’ve spent any amount of time in stock trading or are even considering it, there is no doubt that you’ve come across the term ‘penny-stocks’. Is it all that they make it out to be? It is no secret that trading penny stocks, many investors have made their fortunes and have truly surpassed expectations, but is it for everyone? Can anyone turn a massive profit in penny stocks? In this article, we discuss the pros and cons, as well as how to make the most of your penny stocks.

What are Penny Stocks?

Penny stocks are low priced shares. A common stock share is usually priced at less than a dollar. Penny stocks are usually, highly speculative, and despite having some great attributes, may or may not be right for everyone. Even stocks priced at up near $5 can sometimes be referred to as penny stocks as they are not as expensive compared to blue-chip stock trading.

Since there is a potential for big rewards, many people get lured into buying penny stocks without proper knowledge and education. This is the reason why most people do not turn a profit and usually incur big losses. If you don’t have the stomach for high-risk investments, it may be a good idea to walk away from the entire concept. But, if the potential for big rewards outweighs the risks for you, armed with the right knowledge and skills, it can be highly rewarding.

Penny Stocks, Risks, Time
If you’ve spent any amount of time in stock trading or are even considering it, there is no doubt that you’ve come across the term ‘penny-stocks’. Pixabay

The vast majority of investors dealing in penny stocks go for dark and unregulated markets and sadly, almost all of them result in losses. A general rule of thumb is to get involved with regulated exchanges and only deal with high-quality companies so you are investing in more legit up and coming businesses.

Seek out an Honest Guide and Use Only Risk Money

It is a good idea, in any case, to seek the help of an expert and only use Risk money to trade penny stocks. The outcome of your results depends on choosing the right guide to follow, the right stocks to invest and the right exchanges to trade.

Anyone alluding you towards private jets, yachts and luxurious cars should be taken with a grain of salt. There is no guarantee and all they are selling is a lottery ticket and you are well aware of the risks involved and potential money wasted on lottery tickets.

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The good news is, there are many serious companies with a lot of potentials who are getting listed on exchanges for pennies. Since these are fairly new, their pricing is less than a dollar making it a penny stock. Eventually, these companies get traction and build a reputation until they start trading for dollars. These are the companies you should be keeping an eye on and with the help of the right guide, potentially invest in.

How do you make a profit?

An oversimplification would be, to simply buy into stocks at cheaper prices based on market data and your supposition that these prices will rise, and then sell these shares when they reach the desired price point for a profit.

You can also ‘short-sell’ these stocks if you believe the prices will drop instead of rising. In any case, the basic idea, of course, is to turn a profit, no matter how small.

Penny Stocks, Risks, Time
In this article, we discuss the pros and cons, as well as how to make the most of your penny stocks. Pixabay

To break it down, if you are just starting out, these are the steps you must follow to maximize your odds of winning at penny stocks.

  1. Educate yourself on Penny stocks
  2. Develop a winning penny stock trading mindset
  3. Familiarize yourself with Penny stock terms and jargon
  4. Understanding Key Technical indicators
  5. Understanding Key Penny Stock Chart Patterns
  6. Developing a trading strategy
  7. Start Trading

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OTC Exchanges

Unlike blue-chip stocks that are traded via big exchanges, Penny stocks are traded over the counter (OTC). All you have to do is open a broker account with OTC electronic exchanges, deposit funds and you can start trading right away.

You can open an account with OTC for as little as $100, however, it is not recommended to start this small as you can lose the money quite easily.

Once you have an OTC account, you can simply start trading just like you would any other stock. The transactions over OTC are usually faster than bigger exchanges.

Because of this simplicity, it is easier and faster to get involved with penny stocks than trading on the New York Stock Exchange or other larger securities exchange.

Penny Stock Analysis

Penny Stock Analysis is by far the most important thing you should set out to master if you are considering a long term relationship with Penny Stocks.

Stock Analysis refers to the process of analyzing a particular stock based on its fundamental and technical analysis. The fundamental includes basic things like revenues, profits, and earnings per share, etc. The technical side includes reading charts and evaluating the historical performance of the company to make an informed decision.

If you are just getting started with Penny Stocks, this is where you should be spending most of your time at, to get a handle on chart reading and analyses and familiarizing with patterns and forecasts.

Closing thoughts:

Penny stocks can be highly rewarding in the long term if you know what you are doing and everything begins with the right mindset, the right education. Having a reliable guide to follow with a proven track record gives the much-needed confidence and peace of mind for the marathon ahead.

Timothy Sykes Penny Stocks guide is a comprehensive, step by step guide which goes into the nitty-gritty of trading penny stocks and clarifies a lot of misconceptions in the field.

In the end, once you’ve had your baseline education, your next step is to open your brokerage account and devise a strategy that you will stick to. A strategic, long term approach is the only way to set yourself up for long term success.

 

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Smoking and Stress Lead to Greying of Hair: Experts

Stress, smoking cause early greying of hair

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Stress
Too much of stress can increase ageing. Pixabay

With your first grey strand comes ageing, but it could also be a sign of too much stress, say experts.

“Premature greying can be a sign of excessive stress as it is one of the significant causes; under pressure, one constricts the blood vessels hampering the healthy flow of nutrients to the scalp resulting in hair fall and greying.

“Stress also reduces oxygen supply to the scalp as breathing, and is also one of the major causes of aging and premature greying, dull, and scanty hair,” Rajni Ohri, Founder, Ohria Ayurveda said.

Although ageing is natural, and should be accepted with grace, one cannot control the process of ageing and worrying about it will only further stress.

Mohit Narang, Skincare expert, AVON says that greying of hair can also happen due to smoking. “People who smoke regularly have higher chances of premature greying, as can a lack of nutrition. A diet deficient in vitamins and minerals can lead to early greying.”

Smoking stress
Along with stress, smoking can also cause greying of hair strands. Lifetime Stock

How to tackle the menace of premature greying of hair?

Ayurvedic hair oils are beneficial for slowing greying. If used regularly they delay greying even in old age. Ingredients that assist keeping the hair pigment intact are amla, onion seeds, bhringraj, henna, sesame, curry leaves.

Dried amla can be used to fight premature greying. Cut them into pieces and dry them in the sun; once dry, roast it in the pan and then mix with coconut oil. Apply the mixture on your hair overnight.

Apart from repairing natural hair color, onion juice also helps treat hair loss and thinning. For best results, mix onion juice with lemon juice. Apply the mixture evenly on the scalp and hair. Leave it on for 15- 25 minutes and then wash your hair with a mild shampoo. Make this your routine for at least two weeks.

Curry leaves darken your hair by restoring the natural melanin pigment so that hair becomes dark again. The leaves also help in preventing and treating as curry leaves are rich in Vitamin B and minerals like iodine, zinc and iron.

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Consume a nutritional diet rich in Vitamins B12, B9, Iron, Folic acid. Include amla, beetroot, green leafy vegetables and nuts like soaked almonds, anjeer, walnuts, and soaked sesame seeds.

Practice yoga for healthy blood flow to the scalp. Practice ‘Pranayam’ to keep the mind calm and relaxed.

Quit smoking, or at least reduce the instances of smoking. (IANS)