Penny Stock Investment – CEOs Suggestion and Alternatives

An acquaintance told me that he has a friend who made a fortune from Penny stock investment. This friend did it by riding some crazy penny stock rally and got a huge investment return.

That is how I got to know Penny stock investment. Penny stock is very attractive for a couple of reasons.

PENNY STOCK INVESTMENT: REASON ONE

The first reason why penny stock investment is attractive to a lot of new investors is that they are cheap.

For a new investor with couple thousand dollars, it is tough to make a decent return on stocks that you can’t pick up in volume. As of writing, you can get two shares of Alphabet with some change left to cover brokerage fees. This two shares of Google is not going to make you much money. If you are lucky, you will make enough to cover the brokerage fees.

So like any trade, a new investor naturally start to look at stocks that they can own sufficient amount with the capital that they have. A universal conclusion is that the more shares you can get the higher return potential.

With this finding, almost every new investor inevitably stumbles upon the penny stock market.

PENNY STOCK INVESTMENT: REASON TWO

The second reason why penny stock investment is appealing to new investors is that they have high yields. Some yielding more than 500% in one day! Imagine catching on that bandwagon.

Quick and high return will strike home for most new investors at this point.

PENNY STOCK INVESTMENT: EXPERIENCE

If you can agree with most of what I said above, then I feel confident sharing with you that me too. In the earlier days of my trading career, I had couple thousand dollars, read some internet articles, and bravely entered the Leonardo Dicaprio infested penny stock market.

I am not Leonardo Dicaprio. It didn’t take long for my what was suppose to be a 20k speedy return of assets turn into a worthless pile of digital junk.

So what happened? I did my research.  I was diligent enough to convince myself that it was a sound decision. Many other traders from multiple different forums seem to agree and thought it was a great investment.

The chart told a story of the bull, but that bull stopped shortly after my investment, and it plunged into oblivion with little resistance.

Many years later I suspect I was a victim of a pump and dump. I thought there’s no way I could be the victim, but I was wrong.

The Penny stock market is less strict in its listing requirements compares to the bigger stock exchange. Therefore it is easier for questionable companies and characters to participate.

I’m going to make it entirely clear that Penny stock investing is profitable and lucrative, just that you are most likely not the one making it.

If you are not Leonardo Dicaprio in Wolf of Wall Street, then you are the Lamb of wall street.

PENNY STOCK INVESTMENT: YOUR CALL

My suggestion is that stay away from Penny stocks. A good way to identify that you are not in the right market is to see if there are any reputable companies. If you don’t recognize any name, chances are you are in a less regulated market.

I think that investors must not discriminate. It is absurd to judge a property strictly by the neighborhood it’s in. There are great companies that are temporarily in the Penny stock market, and that is the best opportunity for you to get in.

If you apply constant value investing principles, you can find the right stock cheap. If you don’t know what is value investing,  then I recommend reading The Intelligent Investor by Benjamin Graham first.

After you read this book, you will be able to pick stocks better. However, I think you will not bother with penny stock investment anymore.

Not every company in the penny stock market is a bad company, but be diligent at businesses that are performing exceptionally well in a short period. A good indication of pump and dump.

PENNY STOCK INVESTMENT: SEARCH IN THE RIGHT PLACE

If your decision is to move forward with penny stock investment, then I recommend you be responsible for yourself and do a few things.

1. Call up the company you want to invest, talk to the CEO and ask yourself if you can trust this person with your money.

2. If you can, pay this company a visit in person. Check out their headquarter. Does it look like a functional company?

Visiting a company you want to invest is a reasonable thing to do for any investor. Warren Buffet does it all the time. If you are for whatever reason not allowed to visit, then they don’t deserve your money.

3. Find out what this company does, what do they produce, who do they sell it to, and what their client say about them. Call up their client and ask them openly of what they think about this company. Be open, tell them you are a potential investor, and you have doubts.

If you can’t find anyone that they do business with, or that their customer made you uncomfortable, then the both of them are most likely not worth of your time or money.

4. Always remember that the stock value of a company should reflect their actual value. A stock that is about to climb 500% in a day must be doing something spectacular. Find out what that is.

If you can’t find any information that justifies the rise, it is most likely a hoax.

5. Stay away from penny stock forums, or any stock forums if you ask me. It is one of the most toxic places for any sound investor to get tangled up. You won’t listen to street gossips why should you care about anything on a forum.

Always make decisions on your research and judgment. If the forum is such a good place for investors to get information then why are they not all filthy rich? Why are you on it is an even better question. You obviously are not a successful investor, considering that you are reading an article on penny stock investment.

6. Read books and not internet articles. If you want to become an investor, many good books will get you started on the right path and forge the right mental attitude.

7. Go to class, not those get rich quick trading seminars. Go to a college and drop in on economic classes. A comprehensive knowledge of the economy will help you make sound investment choices.

When it comes to researching on a stock, it is important to find information from the right places. I understand that when it comes to many penny stock companies, there is limited information on which you can base your assessment. To me, that is a good reason enough to stay away from a particular company.

Investing in a company stock is like a marriage. You won’t marry someone on a whim neither should you with a stock.

PENNY STOCK INVESTMENT: ALTERNATIVES

To find an alternative for penny stock investment, we must explore the things that attract in penny stocks.

1. Low capital requirement – As we discussed earlier, you don’t need a lot of money to start buying penny stocks.

2. High return – Penny stocks often promise lucrative returns.

3. Short term – Penny stock investment are not typical long-term investments. It is volatile in nature.

Understanding these key attributes, I would like to make a few alternative recommendations that I think is more beneficial for a new investor learning the trade, and potentially earn something from it.

These suggestions have their associated risk but overall a better environment than the penny stock market.

Option One: Value Investing

One alternative to penny stock investment is to research and review undervalued companies on the big stock exchange. Such as New York Exchange or Toronto Exchange.

During the oil crisis of last summer, many energy stocks plummet to near penny stock status. They have all since rebounded. If you got in at that time, you would have come out with a handsome return by now.

When it comes to investing in stocks, hindsight is always 20/20 and utterly useless. When the oil industry was tanking there were so much noise that prevents an investor from making sound decisions. Such is the case every day.

At one point or another, every investor asks themselves what kind of investors they want to be. The correct answer will always be value investing, but everyone gets there differently.

Option Two: Day Trading

If you are new to investing and you have limited start-up capital, you want to get a feel for how different investment works.
Day trading, for example, is a popular strategy for many traders. Day traders are swing traders or technical analysts. They understand the market and shares through chart and pattern analysis.
One thing to consider however is that you do require a bit more capital to day trade successfully. You need to be at least able to cover your brokerage fees.
Day trading requires sound knowledge in technical analysis. If you don’t even know the difference between a bar chart and Japanese Candlesticks, then you have some pre-requisite reading to go through.
Day trading is also risky, more so than value investing.

Option Three: Binary Options

The third option is something that I recommend for any future penny stock investors and day traders.
Binary Options is not new, although many promoters made it sound like a breakthrough trading platform. I’m not going to talk too much about that here, and I have written a discussion on Binary Options trading in this article.
All you need to know is that Binary brokers will allow you to buy or sell short-term. However, you do not buy or sell on the real market. Instead, you trade through the broker.
The benefit of this is that it allows you to make an investment on Google for example for a dollar, instead of $800 for the share.
You are participating in real markets at the real time, this form of options trading has a fixed investment return, anywhere from 60% to 100% depending on the firm and the asset.

Key Benefits of this Option:

1. You can start trading high rating assets in this option with as little as $20.
2. Practice day trading with demo accounts.
3. Plenty of high-quality tools and chart options to play with for free.
4. Trade stocks, Forex, and Commodities.
5. Real-time charts.

Types of Trading in this Option:

Short term Bull or Bear
This kind of trading is all about reading the pattern and making sound day trader judgment.

penny stock investment 03
Broker: Grand Capital
penny stock investment 04
Facebook stock on Iqoptions, a Binary Options Broker

Mid-term Target
This sort of trading is to judge whether an asset can reach a certain level in a given amount of time, and make the right calls in time.
I think these two types are good practices you can start when exploring Binary Options as an alternative to penny stock investment.

penny stock investment 02
An example of this trade from Nord FX, a Binary Options Broker.

PENNY STOCK INVESTMENT: FINAL WORDS

I hope you have discovered new knowledge with this article. Much of what I shared are knowledge from books and personal experience.
It is important to understand the underlying risk of any investment. Never invest with the money you don’t have and always drive sound decision through logical analysis and abundant research.

Thank you for reading, and If you think this article has value and worth sharing,  then please help me by liking or sharing it.

How to Make Extra Money on the Side Fast – CEO’s Suggestion

Not too long ago I got together with an old friend, after a few drinks he asked me how to make extra money on the side fast. I pondered upon this question and thought of his past complaints about work and financial stress. Without leading him into some rush decisions I told him that there is nothing I can think about on the spot.

I felt bad for not sharing my knowledge of making money as a business person with a good friend. After all I am that high school buddy who pursued entrepreneurship.

Financial challenge is a part of every entrepreneur’s career. There are times where you just have to find ways to boost your liquidity. In other words make some extra money fast.

It is true that there are many ways to make extra money on the side fast. Fast is arguably relative at the moment, I will get to that later. What is more important is why do you need it, how much extra money, and what are you willing to do to make it.

How to Make Extra Money on the Side Fast, The Why?

The why is very important, without the why you would not be reading this article. Without the why there is no reason for anyone to do anything. I have not met a person in their adult life that does things just because, it is an inefficient way to do things.

So why do you want to make extra money on the side fast. There are many reasons that leads to this wish. Perhaps you are looking for a boost in income. Maybe you have a baby on the way, maybe your boss is a dick and you are looking for an opportunity to stick it up his when the time is right. For now though you need to keep doing what you do for that bottom line.

I’m sure there are more reasons to the why than the solutions to the how. I am going to tell you a very specific why that I am trying to offer the solution for in this article. The why that I am catering is for those that have a source of income but are not very happy about it at the moment. Why you are not happy about it is not something this article can help, but the desire spurred from your why is something that I am offering a solution for.

Like my friend you have an income, and you are smart. Smart enough to know that the 60 ways to make money from home, or 24 legit ways to make more money is not something worth of your time to pursue. I agree.

Filling up survey is not a good way to make money, have you tried those surveys? If you have not congratulations you are smarter than me. They are not worth the money or the time nor the effort.

Driving for Uber may work for some but not others. Tell me you are not seriously considering using your brand new BMW 5 series on the weekend ferrying barely legal teens that just had 5 shots of vodka for the first time in their life. Ticking time bombs.

How to Make Extra Money on the Side Fast, The What.

After disputing two of the only things you found in a list of 60 that is doable and tangible you are wondering what can you do to make that extra money.

If you know a craft, then selling it on etsy is a very good idea. Especially if you enjoy crafting. What is important is that you do it on etsy and not ebay. Ebay has always been a prime hunting ground for bargain hunters, letting go of a craft that you spent hundreds of hours making for a meager reward, that is insulting!

I know an aspiring entrepreneur who loves to make print caps and t-shirts. She is doing really well on etsy. Last time I checked she even has her own shop set up, she’s got some really cute baby prints. She did all that while she was working for some media company.

If you don’t know a craft, or is allergic to physical labor. Then perhaps blogging is something of your interest. For example this article is a blog. You probably heard stories of people who are successful bloggers. People do quite alright from writing what they like. In my case I love writing business related articles such as the stock market, new opportunities and document my life as a CEO.

Writing a blog however is not easy, and it’s not something that you could pick up without any prior knowledge. Even if you could and have experience with blogging then you probably would agree with me that monetizing a blog is very challenging and time-consuming.

Monetizing a blog is using your content to generate money. There are several ways to do that, through advertising, affiliation and e-commerce. Technicality aside blogging is not the solution for how to make extra money on the side fast, because it is anything but fast. Sometimes it takes month even years for a blog to gain audience and momentum.

How to Make Extra Money on the Side Fast, The Will!

If you are going to blog do it as a hobby and do it consistently. There are no shortage of half-finished blogs on the internet. It is actually one of my biggest fear to see this blog joining the rank. If you want to find out how to make extra money on the side fast I have something else to suggest that could be better for you. We will get to that in a bit.

If you are a responsible adult, and you have spent your adult life achieving things then you know that will power is a very important mental ability that we posses. The cliché goes when there is a will there is a way. In other words if you have no will then there is no way.

I’m talking about will power because yes I can suggest this for my buddy’s question on how to make extra money on the side fast. However, before we jump into it you have to ask yourself what are you willing to do. Are you willing to read a book, or learn some new skills. Or perhaps both. Reading is sexy and learning is power.

How to Make Extra Money on the Side Fast, The How.

I know I have beaten around the bush for a bit before arriving at this section. I could have given this answer to you in the first paragraph, or tell my friend in a here do this kind of one liner. He would have not listened to me, neither would you. It is just human nature.

I needed to prove to you that I know what is out there, and I have tried almost all of them. Most of them simply do not work, the few that does is not a solution to our problem.

My friend asks me how to make extra money on the side fast because he knows me in person. We hangout together, and that he knows of my business track record. My ups and downs, my success and failure.

So this how to make extra money on the side fast is something I have tinkered a bit with. It is a form of trade, something I have skill in. If you are interested you can see that I have done some extensive research on the subject in my other post titled: Binary Options Trading – The big secret and what you need to succeed.

A Binary Option is basically a form of stock market. You would run exactly the same as you would trading stocks. You predict a trend and invest on your prediction. Lets say if you see that google will go up in the next 3 minutes by 1 point. You call and 3 minutes later the stock indeed went up by 1 point or more. As a result you get paid handsomely, usually 60-90% depends on the asset or the firm.

What is great about this form of trade is that:

1). You can trade it anywhere as long as you have a computer or phone with internet access.

2). You can do it at work, most companies will not punish you for glance at a stock when things are slow.

3). If you are a student going to become a future stock operator then there is no better place to practice your chart reading skills.

4).In Binary trade you don’t need a lot of money, some firms will even allow you to open demo accounts or start with as low as $20.

5). It is super fast! You can open and close a deal within minutes. Say you called $100 on google at 3:00 pm, because you read news that is good for google and you predict that it is going to break its down trend. By 3:03 it moved up. Even though just by 1 point it is higher than when you called it. The return is 80%, you take home $100 + $80 = $180 in 3 minutes.

6). Your boss walks by, you turn off the browser and goes back to work $80 richer.

That is how to make extra money on the side fast.

How to Make Extra Money on the Side Fast, Warning!

At this point you are excited and eager to give it a try. You’ve read my article up to now so do yourself  a favor and finish it.

Binary options are legal and regulated in almost every country with some exception. Legality is not the issue I want to warn you. What I want to warn you is the risk. The market; binary, stocks, commodities, Forex are risky. People get rich playing the market, but people also lose money.

Before you jump into Binary ask yourself if you are knowledgeable enough to play this action packed market or not.

If your answer is no there are two things you can do.

1). Get yourself educated with this form of trade. It is not very complicated but there are certain fundamental knowledge to have. If you are really curious and like the way I explain things read this post I wrote on the subject. It is more extensive and almost 5,000 words but it is a good place to get you acquainted with this type of trade.

2). Walk away and pick something out of the list I mentioned in the beginning. You probably won’t make any decent extra money with any speed, but there is no risk but your time.

How to Make Extra Money on the Side Fast, Where to Start.

Now that I have shared with you my suggestions on what I think is what you are looking for on how to make extra money on the side fast. Here are two firms that offer this type of trade. I have done my research on them, do yours as well.

Iqoption

NordFx

So think about if this is something you can succeed in. Read my other post learn something new.