Will Market Make U Turn ?

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The stock market is not a small entity, it is a huge cauldron of hard money and the volumes result in great market capitalization. It is important to assess many factors prior to making your move in the stock market. Today, the blue chip companies are playing low and it is still safe to be with them until the tide is reversed.

When people hear the term “Penny stocks” this is referring to shares of organizations that are priced at very small prices. These offer large growth potential, and the initial investment can be rather small, but you do stand the risk of the business becoming shut down and you dropping your money invested.

Selling options is a viable strategy especially when the markets are whipsawing back and forth. Most people think of option selling as a very risky strategy.

The recession is clearly on us and clearly there are sections of our community which are badly hit by the credit crunch, debt, redundancy, and negative equity – and falling interest rates. But equally, there are sections which don’t seem to be impacted in the slightest. See it for yourself, and have a good time in the process.

Penny stocks are share offerings available to stock investors by organizations that are simply too new or small to have a listing with the dominant stock exchanges. They have high growth possibilities, and your initial purchase can be very small, but you run the risk of the company becoming shut down and you dropping your money invested. The draw to these kinds of shares due to the fact that despite the risks you can see sizable profits.

When I think of penny stocks I can’t help but get excited! Some people are hesitant to buy penny stocks; because they believe penny stocks are too risky. But the advantage is that they offer incredible growth potential. The key is knowing how to properly choose which stocks to invest in.

Most people think that all you can do with stocks & shares, is buy them, hold them for a period of time, and hopefully wait until they go up in value, and sell them for a profit. This in fact is the most popular way stocks & shares are traded on the stock market.

In a situation like we have now in the market there are many stocks that are way undervalued. You may be looking into buying some of these undervalued stocks and waiting for the market to recover. If so selling out of the money covered calls on those stocks is an excellent way to generate monthly cash flow from your investments.

Investing in conventional blue chip stocks may not have the attraction of a sizzling high-tech deal, however it can be extremely rewarding nevertheless, and as good quality stocks are seen to have outperformed other investment groups over the long stretch. Traditionally, investing in stocks has been seen to have generated a great return over time, of between 10 and 15 percent per annum depending how much of an aggressive investor you are. Stocks do better than other investments since they sustain more risk.

A company must be able to record about 25 to 30 per cent quarterly earnings growth, compared to the corresponding period in the previous year before you can confidently say that this company has actually returned to profitability. So the best strategy in selecting stocks that are sure to return profits to the investor, is focusing on stocks with long history of successful quarterly growth for some years. This helps to minimize your investment risks and bulletproof your funds against losses.