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How To Trade Global Penny Stocks - Business - Nairaland

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How To Trade Global Penny Stocks by ologan: 6:29pm On Jul 02, 2008
This thread shall be based on basics of penny stocks trading on global market. Lectures on it will commence tomorrow and run for 2 weeks. So follow me on it.
Re: How To Trade Global Penny Stocks by ologan: 3:08pm On Jul 03, 2008
The first step for you to understand the stock market is to understand stocks.
A share of stock is the smallest unit of ownership in a company. If you own a share of a company’s stock, you are a part owner of the company.

You have the right to vote on members of the board of directors and other important matters before the company. If the company distributes profits to shareholders, you will likely receive a proportionate share.

One of the unique features of stock ownership is the notion of limited liability. If the company loses a lawsuit and must pay a huge judgment, the worse that can happen is your stock becomes worthless. The creditors can’t come after your personal assets. That’s not necessarily true in private-held companies.

There are two types of stock:

Common stock
Preferred stock
Most of the stock held by individuals is common stock.
Common Stock
Common stock represents the majority of stock held by the public. It has voting rights, along with the right to share in dividends.
When you hear or read about “stocks” being up or down, it always refers to common stock.

Preferred Stock
Despite its name, preferred stock has fewer rights than common stock, except in one important area – dividends. Companies that issue preferred stocks usually pay consistent dividends and preferred stock has first call on dividends over common stock.
Investors buy preferred stock for its current income from dividends, so look for companies that make big profits to use preferred stock to return some of those profits via dividends.

Liquidity
Another benefit of common stocks is that they are highly liquid for the most part. Small and/or obscure companies may not trade frequently, but most of the larger companies trade daily creating an opportunity to buy or sell shares.
Thanks to the stock markets, you can buy or sell shares of most publicly traded companies almost any day the markets are open.
Re: How To Trade Global Penny Stocks by ologan: 4:00pm On Jul 04, 2008
FUNDAMENTAL AND TECHNICAL ANALYSIS

What is Fundamental Analysis?
Fundamental analysis is the practice of studying the fundamentals of a company to determine if a business is a good investment. Fundamental analysis can answer questions such as "what are the chances this business is going to go bankrupt" and "how certain can I be that this stock will continue paying dividends?" It involves studying financial statements such as the balance sheet.

What is Technical Analysis?
Technical analysis is the practice of studying the stock market's past in an attempt to determine its future. People who utilize technical analysis often study charts and graphs of a particular stock, industry, and / or sector to try and find patterns.
Here's how it works: A technical analyst may look at XYZ's stock and notice the price has risen every February, then fallen sharply in March every year for the past four years. They would then buy XYZ stock in February because he / she believed the market was likely to repeat the same price pattern. Technical analysis does not pay particular attention to the fundamentals of a stock.


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Re: How To Trade Global Penny Stocks by babyx(f): 4:13pm On Jul 04, 2008
@ologan
Very informative, I only recently started paying attention to stock trade. i find rather interesting. Please keep the information flowing that is if you want to educate some of us on the nitty gritty of how stocks are traded.
Thank you.
Re: How To Trade Global Penny Stocks by ologan: 4:21pm On Jul 04, 2008
Thank u babyx. My intension is to enlighten people on global stock market.
Re: How To Trade Global Penny Stocks by ologan: 7:47pm On Jul 05, 2008
In stocks selection, the main job is being able to assess informations. Many investors feel qualified and prefer to analyze data, which is fine as long as they have time, resources and skills to produce reliable results. Some contract the services of professionals to save time. However, in selecting stocks the following questions must be answered before taking a conclusion on investment since you are the fund owner and the one taking the risk:

Is the company making money?
What is the stock really worth?
How safe is the stock?
Is its price rising or falling?
What is its forecasted earning per share?
What is its estimated earnings growth rate?
How fast are the dividends?
Does this stock meet my risk/rewards objectives?
Should I buy now?
When should I sell it?

The above questions need to be answered before taking an investment decision.

Investments has been one of my sources of income (both global and local stocks investment) and I use questions above to do analysis with some mathematics before taking decision on either to buy or sell.
Re: How To Trade Global Penny Stocks by ologan: 12:46pm On Jul 08, 2008
The Two Ways You Make Money


Now that you see this, it’s easy to understand that your wealth is built in two distinct ways:

1. An increase in share price. Over the long-term, this is the result of the market valuing the increased profits as a result of expansion in the business or share repurchases, which make each share represent greater ownership in the business as a percentage of total equity. In other words, if a business with a $10 stock price grew 20% for 10 years through a combination of expansion and share repurchases, it should be nearly $620 per share within a decade as a result of these forces assuming Wall Street maintains the same price-to-earnings ratio.
2. Dividends. When earnings are paid out to you, these funds are now your property in that you can either use them to buy more stock or go to Vegas and blow it all at the craps table.

Occasionally, during market bubbles, you may have the opportunity to make a profit by selling to someone for more than the company is worth. In the long-run, however, the investor’s returns are inextricably bound to the underlying profits generated by the operations of the businesses which he or she owns.
Re: How To Trade Global Penny Stocks by welikeit: 6:43pm On Aug 02, 2011
HI. AM E.C.NELSON . i have been search for who to teach me this global penny stock trading for long.here you are.

please, i want to know whether u teach one on one or with manual ,the price for training and Ur contact.


thanks
Re: How To Trade Global Penny Stocks by Ukongbadah: 11:31am On Dec 06, 2013
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Re: How To Trade Global Penny Stocks by Ukongbadah: 11:32am On Dec 06, 2013
check this out for proper guide on trading penny stocks;
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Re: How To Trade Global Penny Stocks by ssolaoye: 10:43pm On Apr 03, 2019
Successful secrets about how to trade and make money from penny stocks in Nigeria.

https://nairabarter.com/blog/trading-penny-stocks-in-nigeria/

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