Just as the name suggests, penny stocks are common price shares of small public companies which are traded at low prices per share. They are also known as nano-cap stocks, micro-cap stocks, OTC stocks, or small-cap stocks. What makes penny stocks different from other stocks is their exchange platforms. In the United States, the NASDAQ, the New York Stock Exchange (NYSE), and other notable stock exchanges are the exchange platforms in which regular stocks are exchanged. On the contrary, penny stocks are traded Over The Counter (OTC), and there is little or no information on these companies that represent the stocks on this exchange platform. Hence, it is difficult to determine the exchange. That being stated, how can you achieve success trading penny stocks? Here are the various tips on how you can profit from penny stock trading.
Trade Low Price Stocks
The penny stock market comprises stocks with diverse price range. However, as a newbie, it is advisable to begin on a small scale. Let’s consider an example:
A trader who is new to penny stock trading may have two shares that he may be brooding over to purchase. The first stock may be worth $12 and the other one $120. With the first stock, there is a lesser amount of risk involved in comparison to the second stock. Hence, you can hold a position and stay relaxed as the stock closes in profits.
Another example to consider: A trader who wants to invest in the stock market with a fixed amount of $1,500. If the trader spends in the $10 stock, he gets 150 shares, if he invests in the $50 stock, he gets 30 shares, likewise, if he invests in the $150 stock, he gets 10 shares. In a case scenario where the price of the stocks increases by $3, he will make a profit of $450 on the $10 stock, $90 on the $30 stock, and $30 on the $150 stock. This implies that the $10 stock has the tendency to triple in value than the $150 stock. However, the probability of the $10 stock falling in price is higher when compared to the $150 stock. Nevertheless, your risk and loss are minimized.
Conduct An Extensive Research
As discussed earlier, there are significant downsides to penny stocks, which includes zero transparency. Hence, it becomes tricky to watch out for undervalued stocks. It can be likened to one looking for a needle in a haystack. Most traders search for promising penny stocks they can trade with. That way, their source of income keeps flowing. Therefore, it is necessary that you make extensive research on the penny stock you want to trade. Part of what you need to look into may include the stock company’s background, inception, business sector, growth, and dominance in the market.
Bear in mind that you may need to go through 20 – 30 companies before you find that perfect opportunity. Do not let this lengthy search discourage you or get you distracted.
Analyse The Trading Volume Numbers
We will be looking into another example shortly. Let’s assume a trader, say Miss XYZ purchased 25 shares of a $10 stock sometime in the past. Presently, the price of the stock has increased to $25 per share. It is obvious that there are some profit being made from the stock, and then she sells all the shares, but alas, there is no one to buy her shares.
Another challenge faced in the penny stock market is that they are represented by companies with fewer reputations or those that have poorly performed in the market. This means that a majority of individuals will not be interested in risking their money by purchasing those stocks. In the real sense of it, the company shareholders would be the ones to promote the company’s stock.
Due to illiquidity, traders find it hard to make profits trading penny stocks even when the numbers indicate so. It becomes nightmarish when a large number of shares are involved. To prevent such from happening, it is essential that you analyse the trading volume numbers of the shares you intend to purchase. Your search should extend beyond a year. In a situation where the trading numbers are low, then it is advisable to avoid them.
Diversify Your Trade
One important thought traders have on their mind is the number of shares that should be bought and the number of sectors the shares should be invested in. There are various sources that will provide you with answers. Whatever the answer is, it is important to know that the risk/reward ratio is vital. So if you want to diversify, it would be best to do so in an investment field. The reason for this is that if you encounter a loss in one sector, other sectors can recoup your loss and even make extra trading profits for you.
Take Affordable and Calculated Risks
There is no investment without its risks. The same thing applies to penny stock trading. There is no guaranteed profit. Therefore, you should ensure that your investment is one you can afford to risk. Life-changing funds that affect your education, wedding plans, health treatment and others, should never be used to invest as a negative turn out can be disastrous. Try as much as possible to curb your losses to the barest minimum.
Tim Sykes Millionaire Challenge
The Millionaire Challenge is ideal for traders that want to greatly increase their learning curves and boost their trading careers. Only those who are dedicated are allowed to be members of this program. Also, one would need to go through an application and interview process. The features include in this program include:
- 6000+ video lessons
- Over 800 webinars from Tim and his team
- Live webinars (offered by Tim and his top students)
- Tim’s Alerts and TimChallenge Chatrooms
- 14 educational DVDs
This plethora of valuable content may be overwhelming to anyone new to the program. However, each of them is worth studying as it will expose you to how Tim understands and relate to the stock market. If you wish to know to get on this program and improve your trading techniques and strategy, please visit this link: Timothy Sykes millionaire challenge: Profiting with penny stocks
Reasons for Choosing Temporary and Permanent Industrial Buildings
Professional temporary solution providers have become very innovative in designing industrial buildings. While temporary industrial structures are made of lighter materials such as aluminum and fabric or PVC covers, permanent solutions are made of steel or metal frames and sheets. All of them require good preparation of the ground, pre-fabrication of the frames and sheets, and proper installation to serve their purpose well.
Most beneficiaries of these structures are processing factories, manufacturing plants, sports clubs, schools, and many other organizations and companies. Choosing temporary and permanent industrial buildings from a reputable supplier has many perks.
So, let us dive into the reasons for choosing temporary and permanent industrial buildings to understand this topic better.
Amazing Speed of Constructions
Bye-bye brick and mortar industrial buildings that are time-consuming. Temporary and permanent industrial buildings are the way to go because they are fast and easy to fabricate and install using modern technology.
According to experts, these structures save a lot of time, especially if the frames and panels are already fabricated in the factory. Companies that need to set up new companies or expand the current ones will have everything ready in a matter of a few weeks.
Excellent Cost Saving
The economy is hard enough and the investor needs to save on capital when setting up companies or doing expansions. The good news is that temporary and permanent industrial buildings save costs by up to 30% when done by a professional company.
Smart-Space is not only innovative in their technology but they save you a lot of money when setting up your industrial structures. You can rent these structures if you only need them for a short time to save more money.
Absolute Flexibility and Versatility
If you are looking for structures that can be moved after a few years, then temporary and permanent industrial buildings are the way to go. As mentioned, they are made of frames and panels that are fastened together using bolts. Hence, they are easy to dismantle and move to a different location.
However, this work should be done by professionals to reduce damage and ensure the safety of the structures at all times.
High Level of Customization
If you are looking for functional sizes and unique designs that will maintain the theme of your company or organization, the temporary and permanent industrial buildings done by experts will be best. After a discussion of what will serve your business well, the solution provider will take a few days to do the designs with your preferred sizes and colors.
Customization also applies during the extension of an existing factory where everything is done to your preference or in the best possible way. To achieve a high level of customization, you should consider experienced solution providers.
Both temporary and permanent industrial buildings are surprisingly durable. Take steel industrial structures for example. They provide service for many years without the need for complicated maintenance. Since steel does not rust, the structure will withstand harsh weather conditions including moisture.
Structures made of metal frames and fabric are equally durable, especially when used as recommended. They also require low maintenance with no paintwork needed after every few years.
The buyers of temporary and permanent industrial buildings enjoy different manufacturer’s warranty benefits. This could be the bought structures or the materials used to make them. What’s more is that many reputable service providers also give warranties on the workmanship, which will save cost when there is a problem.
To enjoy all of these benefits, it is good to buy or lease your temporary and permanent industrial buildings from a reliable and trusted supplier. Well, there are even more benefits that you will realize once you start using these structures. So, make the right choice now.
New ways of thinking and working are necessary to reap blockchain benefits in capital markets
The World Economic Forum today released Digital Assets, Distributed Ledger Technology, and the Future of Capital Markets. Across the capital markets ecosystem, institutions are facing a combination of intensified competitive dynamics and accelerating technology advancements, presenting opportunities and challenges both to incumbents and new entrants. Although DLT is not a panacea, the report underlines how it can positively impact costs, market liquidity and balance sheet capacity while reducing the complexity, opacity and fragmentation of capital markets.
Written in partnership with the Boston Consulting Group (BCG), the report is based on nearly 200 interviews and eight global workshops with capital market incumbent players, new entrants, regulators and governments. It presents use cases from equity markets, debt markets, securitized products, derivatives, securities financing and asset management.
DLT can address real challenges and inefficiencies in some markets by providing a trusted, shared source of truth between market participants. However, the future is uncertain as there is no agreed path for market-wide adoption. What’s more, as institutions still decide where to invest, varying strategies create tensions.
The report calls for a balance between innovation and market safeguards through standardization, the breaking down of silos and regulatory engagement. According to the authors, fundamentally transforming markets will require new ways of thinking and working across the industry.
“Following several years of intense hype, examples of use cases where inefficiencies and challenges are being solved with blockchain are starting to emerge across capital markets,” said Matthew Blake, Head of the Future of Financial Services, World Economic Forum. “With the future for blockchain in financial services still being defined, a nuanced look at the opportunities this technology offers right now is particularly important for the financial services industry.”
“Distributed ledger technology has come of age as it begins to enhance efficiencies, reduce operating costs and create new business models in capital markets, but the use cases and solutions are respective to each asset class,” said Kaj Burchardi, Managing Director, BCG Platinion. “Whilst this makes sense from a commercial perspective, it has led to a complex patchwork of initiatives. For capital markets to unilaterally adopt DLT, they will require cross-institutional alignment to realize the game-changing market opportunities it can offer.”
Russian Nornickel signed a deal with UK chemicals giant Johnson Matthey
Russian Nornickel, the world’s largest metal producer has signed a deal with Johnson Matthey (JM) on long-term supply of critical metals for their battery materials production in Finland.
The Finnish government is actively developing production sites for battery components. Finnish budget for 2021 includes additional funding of EUR 300 million for Finnish Minerals Group to promote investments for the production of precursor and cathode active materials used in lithium-ion batteries in Finland.
Earlier in April Nornickel announced plans to ramp up sustainable nickel and cobalt production at its refinery in Finland — NN Harjavalta — in response to the growing European demand for high quality and responsibly sourced metals for the EV industry. NN Harjavalta’s product range will be playing an important role in satisfying Johnson Matthey’s requirements for its precursor and cathode active materials production in Finland as well as for its existing factory in Poland.
Johnson Matthey announced the development in Finland of its second commercial plant with a nameplate capacity of 30 kt of ultra-high energy density cathode materials required by EV producers. The factory will be powered solely by renewable energy and incorporate an innovative effluent treatment solution.
Nornickel and Johnson Matthey have also signed a memorandum of understanding to explore options to further extend metal supply in the future. The parties also intend to collaborate in other important parts of the battery materials value chain, including new metal dissolution technology, circular economy opportunities, and tokenization of the supply chain using blockchain technology. Implementation of token-based smart contracts allows combining metal deliveries with complete provenance as well as ESG credentials including carbon footprint to ensure the unprecedented level of responsible sourcing.
The deal will allow the Russian and British company to define joint sustainable development initiatives.
“We are delighted for this opportunity to develop our business together with Johnson Matthey — a new important player in the Finnish battery materials ecosystem — and help the company expand on the European EV market. Our memorandum should enable us to identify mutually beneficial sustainability initiatives that support the ambition of achieving the most sustainable battery materials value chain in Europe,” commented Vladimir Potanin, President of Norilsk Nickel.
Earlier, Norilsk Nickel signed a letter of intent to establish a battery recycling cluster in Harjavalta, Finland, to serve the electric vehicle market in partnership with Finnish energy company Fortum and German world’s leading chemical company BASF. This will successfully complete the “closed loop” recycling cycle for critical metals present in used batteries.
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