The Financial Market, in all its manifestations is moved by both the commercial needs of institutions and governments and the Central Banks, investors or speculators that, on the order of millions, interact with their multiple operations.
In order to participate in this market successfully, it is necessary to have the right preparation and vast knowledge that manage to drive you definitively away from gambling and project you onto an informed, balanced speculation.
This purpose of this book is to provide some primary elements that are required to introduce oneself in this field, even though we will focus on the Technical Analysis of this fascinating world of the Financial Market, by indicating a point of departure for those who, due to their training as well as their character and their talent, can master smart speculation with the aim of obtaining profit.
To be able to frame Penny Stocks within a more or less arbitrary definition, let’s refresh what Stocks are.
Shares or stocks are equal parts in which a business corporation’s capital is divided are they are often referred as share or stock certificates. The shareholders can have participation in the company’s development, and they benefit from or get damaged by the fact that the company increases or decreases its value over time.
The people who receive or buy are the shareholders and they represent the company in conformity with the number or percentage of the total number of shares in which its capital was divided.
All these assets can fall in the field of speculation in different ways. A future is bought at a given price on an agreed upon date, right there and then profit or loss is obtained depending on price movement.
There are even people who buy stock options since they do not want to invest capital in a company that they have foreseen will be successful. They buy a contract in the time those shares will increase in price, paying a premium for it, but at the same time guaranteeing the profit of what the share increases in price or the loss exclusively of the premium paid.
By definition, a company’s shareholders are its part-owners, in proportion to the shares they own, which represents the investment that that person has contributed to this company.
Penny Stocks have their pros and cons, they can become a successful operation, but just the same they may bring about certain losses. Participate, but be cautious and moderate and above all, be well-informed.
Penny Stocks can bring you considerable profits, but exaggerated numbers are usually not real, becoming a multimillionaire with Penny Stocks is almost a chimera, but getting substantial profits is a real possibility.
The fact that Penny Stocks are so cheap only indicates how volatile and uncertain that investment is, that is why profit can be huge.
Get information about the companies that issue the Penny Stocks and make sure you like them, read what they publish, but do not feel content with just that, obtain impartial opinions in this regard.
Internet websites, forums provide an overview that is at times influenced by the Penny Stocks issuers themselves. Analyze the information carefully.