Stock Preacher

A cash account (also referred to as a Type 1 account) means just what you think it means. You must deposit a sum of money along with the new account application to begin trading. The amount of your initial deposit varies from broker to broker. Some broker have minimum of $10000 while others let you open an account for as little as $500. Once in a while you may see a broker offering cash accounts with no minimum deposit, usually as part of a promotion. Qualifying for a cash account is usually easy as long as you have cash and a pulse.

With a cash account, your money has to be desposited in the account before the closing (or settlement) date for any trade you make. The closing occurs three business days after the date you make the trade (the date of execution). You may be required to have the money in the account even before the date of execution.

In other words, if you call your broker on Monday , October 10 and other 50 shares of cashless cop. At $20 per share, then on thursday, October 13, you better have $1000 in cash sitting in your account. Otherwise the purchase does not go through.

If you have cash in a brokerage account see whether the broker will pay you interest on the uninvested cash in it. Some offer a service in which uninvested money earns money market rates and you can even make a choice about whether the venue is a regular money market account or tax-free municipal money market account.

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What we have learn these week?

Deciding what time frame fits your Investment Strategy

Looking at your purpose for investing

Determining your investing Style

Next topic we will take about “Investment Risk”. Any investment including Penny Stock Investment have risk. We will teach you how to control your “Risk” on the next topic.

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Discovering Your Penny Stock Investment Strategy!

Various Stock are out there, as well as various investment approaches. The key to success in the stock market is matching the right kind of stock with the right kind of investment situation. You have to choose the stock and the approach that match your goals.

Before investing in a penny stock, ask yourself “When do I want to reach my financial goal?” Penny Stock are means to an end. Your job is to figure out what that end is, or more importantly, when it is.

Do you want to retire in ten years or next year? Must you pay for your kid’s college education next year or 18 years from now? The length of time you have before you need the money you hope to earn from penny stock investing determines what penny stock you should buy.

Here is table give your some guidelines for choosing the kind of stock best suited for the type of investor you are and the goal you have.

This Table give you general guidelines, but keep in mind that not everyone can fit into particular profile. Every investor has a unique situation, set of goals, and level of risk tolerance. Remember that the term large-cap, mid cap and small cap refer to the size of the company. All factors being equal, small-cap companies are the potential to make money fast in the Stock Market. However, you need to know how to invest in Small-cap Stock like we (Stockpreacher.com) did.

Are you Short Term? Long Term? Investor?

Are your goals long term or short term? Answering this question is important because individual stocks can be either greater or horrible choices, depending on the time period you want to focus on. Generally, the length of time you plan to invest in stocks can be short term, intermediate term or long term. The Next Article outline what kinds of stocks are most appropriate for each term length

Investing in Stocks becomes less risky as the time frame lengthens. Stock prices tend to fluctuate on daily basis, but they have a tendency to trend up or down over an extend period of time. Even if you invest in stock that goes down in the short term, you are likely to see ti rise and possibly go above your investment if you have the patience to wait it out and let the stock price appreciate.

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