| Stocks investment is not an easy subject, especially | | | | zooms down, think twice and look at it as a signal to |
| if you do not know what to look for. Stocks | | | | take extra caution. Don't get carried way into buying |
| investment in micro capital stocks is even harder, | | | | just because you like the stock. |
| because information about microcap companies - or | | | | There are thousands of Stocks investment that may |
| penny stocks companies as they are often called - is | | | | be more worthy than this one. If you cannot get this |
| not easily available whether in print or online on the | | | | one, move on and look for something else. If you still |
| internet. | | | | want to buy the stock, wait until it stabilizes or goes |
| However, micro cap Stocks investment can be | | | | back to your predetermined buy price. |
| learned, and can be a lucrative way of making money | | | | Rule number 3 - Don't wait for a perfect price. |
| if you know the guidelines and stick to them. Here | | | | Don't look for a perfect price; there probably won't |
| are a few that you should follow. | | | | be one. Study the historical price charts and decide |
| Rule number 1 - Do your homework. | | | | on a bottom and ceiling range for your buy price. If |
| Sometimes you will come across Stocks investment | | | | the prices fluctuate, take the average. |
| information that will catch your attention like a eureka | | | | After you have researched the company and you |
| moment. Don't jump at making Stocks investment | | | | are sure the price will move upwards in the short |
| right away; make sure you do your homework first. | | | | term or long term, go ahead and buy it if it meets |
| Research everything you can about the company, | | | | your price range. |
| especially about the stocks investments. Look for | | | | Rule number 4 - Invest a smaller portion of your |
| information about the people running the company. | | | | portfolio in micro cap stocks, and keep a bigger |
| Study how many stocks the company has on float in | | | | chunk for big cap stocks investments. |
| relation to the total number of outstanding stocks, | | | | If you plan to build a portfolio of stocks investment, |
| and how many belong to the insiders. Look at the | | | | keep no more than a maximum of 50% of the total |
| demand for the stocks. See how long the company | | | | value of the portfolio to micro cap and penny stocks. |
| has had the stocks on float and look at the trend - is | | | | If you can make big cap stocks a bigger chunk, |
| the price steadily going up, is it flat, or is there a | | | | that's even better. |
| downwards trend? | | | | Big capital stocks are more stable, but may not earn |
| Rule number 2 - Use a disciplined strategy when | | | | as much as small caps. Small cap stocks have the |
| deciding on stocks investments; don't involve your | | | | potential to earn more, but they are riskier and will |
| emotions. | | | | take up a lot of your time. A portfolio with a bigger |
| Think of this as a game of strategy. After doing | | | | percentage devoted to big cap stocks will be easier |
| your homework and you find a stock you like, decide | | | | to manage and will cause you less stress. |
| on a buying price and stick to it, no matter what. | | | | Rule number 5 - Don't get greedy; lock in your gains. |
| It may happen that before you could buy the Stocks | | | | Now that you are getting the hang of stocks |
| investment you want, the price shoots upwards or | | | | investment, don't forget your disciplined strategy. |
| downwards even if there is no new significant news | | | | Once you earn enough, lock them in with trailing |
| to influence the fluctuation. Don't buy if the price | | | | stops these are stop loss orders to protect your |
| shoots up, just because you think you might be | | | | profit and sell out while you still can. |
| missing out if you don't buy it now. If the price | | | | |