The foremost budget of the new Government aimed to serve ‘the 98% at the expense of the 2%’. Do your research, follow the penny stock tip boards, find posters who have good track records, and try to find a penny stock that is poised to move higher. Sometimes these small penny stock companies actually do have big developments, such as significant contracts with big well known companies or large sales gains. A good strategy for a newcomer to penny stock trading is to start following the penny stock trading boards and trade on paper, without using real money. However, shrewed pennystock traders can pick up on market patterns and anticipate news events to give themselves a statistical advantage and walk away with gains.
Just note when you would have brought the penny stock you are interested in buying and how much you would have brought and paid for it, and then when you think it is time to sell, make a note of the price. Please consult a registered financial advisor to ensure you understand the risks and rewards associated with buying and selling penny stocks before undertaking penny stock stock trading.
For the purpose of this test, I invested a total of $2000, $1000 in stock purchases with $1000 to use to help build profit and maintain a positive cash and stock position. CLRT is a stock that started at $2.65 a share in Dec 2009 and ended at $5.00 a year later. Had you not done anything, your profit for $1000 in this stock would have yielded the holder a nice profit of $923.65. Had they invested all $2000 in the stock, the profit would have been double the $923.65 or over $1800. What you do find very positive is your cash position of $1643.45 which can then be used to buy stock should the stock drop the next month. I doubt BD ‘s delivery quality and distribution control capability for China customers.
Your cash position throughout the year was there for you to use to respond to the market conditions. Being totally invested limits your response should the market change, the stock drops, potential to lose your entire investment is a possibility. Had you bought the stock and held for a year without action, you would have lost $.59 a share or around $99 a share.
The amount of cash available has been reduced considerably putting you in a stock position yet still capable of adding shares if the decision window dictates to do so. You would also have used up your original $1000 and added approximately $500 to your cash account. By the end of the year you gained back your $500, your profit is found in your stock position. Investors should check the news about the company to know the reason of its falling stock price.