small – Penny Stock Trading

Many people do not know how stock investment can make one to become a millionaire. The Investors, who have the required discipline for a long time investment, will surely make their million dollars from small cap investment.

There are minor, penny and blue chips stocks, for investors to trade on short, medium or long time. Minor stocks are those stocks which are less than one dollar, below penny stocks; these are Chinese companies listed in American Stocks Exchange.

The plan is applicable to any type of stock. But it is known that small cap stocks usually yields and double profits, than the penny or blue chip stocks within short time.

For any one to make the million dollars; the need to invest on small cap is necessary and such Investor must hold his initial quantity of stock for about 10 to 15 years to grow, provided the company remains in operation. The shares/money will continue to rollover through the annual bonus shares benefit from the company.

Though, this is not easy for someone with low earnings and this is why I am recommending “mini-cap stocks” for any one to invest. Minor cap stocks are just within cents.

Remember also, that your investment/minor cap stocks will not remain as minor cap forever; as it will rise to penny and further to blue chips.

This type of investment does not require any training but the major factors before going into such investment are viz:

i. To understand the company background though, they are in most cases new companies,
ii. Study their growth from early days when they began business,
iii. Find what sot of business they do and project what they can be in the next 15 years,
iv. Who are the personalities behind the Company of your choice?
v. Try as much as you can to avoid one man business, which does not carry people along,
vi. Make sure your investment is worth doing, though, investment carries lots of hidden and opened risk, but you must try your best to reduce the risk factors to the barest minimum. You can find these on Google search engine.

Lastly, buying the minimum of about 5,000 quantities of shares is what is necessary here; the quantity of the shares matters most and from there, to rollover as long as you can hold the quantity for number of years.

Find this link to a table for more explanation, to enable you understands how it will affect your proposed investments to your success.

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Boluji Olatunji –
About the Author:

I have traded stocks gainfully and build my wealth; you can find the stock listing here be it in U, K or American firms. Happy trading.

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Article Tags:
cap stocks, stocks investment, small cap stocks, stocks exchange, american stocks, penny stocks