To: WEBNATURAL who wrote (55 ) 6/5/1999 6:34:00 AM From: WEBNATURAL Read Replies (1) | Respond to of 125
Getting Started 1. You will need to sign up with an on-line brokerage firm such as Web Street ,Suretrade or Waterhouse. 2. As a beginner you should not buy more than 1000 shares of each company. As you develop your skills in choosing good companies you can increase your buying blocks. 3. Most brokerage firms will allow you to buy a max. of 5000 shares per trade or you will be charged extra. Web Street offers unlimited at one charge. 4. Buy at 52 week low. Use charts to target buying range. 5. Buy stocks that have low floats, i.e. freely trading stocks. Under 12Million is a good buying range. 6. Buy companies that already have a product and contracts, have good news out and good future potential. 7. Always wait two hours in the morning before buying. Never buy at market unless you check the realtime quotes. 8. Always call the company to verify shares, performance and outlook. 9. You will need to use a fraction for placing trades. Always have a chart available on hand. 10. Use message boards for tips only. DO NOT BELIEVE ANYTHING YOU READ ! Do your own research. Do not hype stocks and do not bad talk companies. Here we give you some more rules about micro-cap stock investment you may want to consider. Rule # 1 - Generally you shouldn't invest more than $1000 into any one micro-cap stock. These stocks are speculative sometime, and thus contain some degree of risk. Besides, even a small investment can pay off significantly due to the large price movements of micro-cap stocks. Rule # 2 - Keep a portion of your portfolio in cash. A 20-30% cash position enables you to respond to price movements and news with strategies such as averaging down or diversification. A dynamic portfolio can greatly improve your returns. Rule # 3 - Sell when you've made good profits. Too often investors hold on to a stock that has multiplied several times in value, hoping for an even greater rise. If you must hold on to shares for the long haul, then it is a good strategy to sell part of your holdings like half when the price has doubled, and let the rest ride for the longer term. Rule # 4 - Don't sell from panic. Penny stocks are very volatile, and can rise or fall greatly within days or hours. Also understand that if you are adverse to any degree of risk or volatility, then more conventional investments such as bonds may be more appropriate for you. However, with right guidance risk levels may not be greater than those found on the conventional stock markets. Rule # 5 - Give yourself a powerful advantage by doing your own research. Rule # 6 - Have fun. Micro-cap stock investing is much more exciting than any other types of investing, as the potential rewards are greater and will come more quickly. ------- Copyright 1999, analystgroup.com. All rights reserved. Persons may reprint or copy any portion of this publication, provided any reprint or copy is accompanied by our web address (http://www.analystgroup.com).