We are all warned about investing in the stock exchange markets or trading in stocks trading for cents. Just because they are available for a fraction of a dollar, does not mean they are valuable and trading for "pennies on the dollar", as the share price is a reflection of the companies market cap and what the market has determined the company to be worth based on the amount of shares issued.

Things to avoid when trading penny stocks
Try to avoid investing in free stocks. Freely given stock advice or stock tips usually turn out bad results. Avoid trading when the market is low and when the visibility is low as well. Make sure that you trade penny stocks to invest in companies when the market is lucrative and when you choose to buy or sell do so in low cash volume. Once you begin investing in a company, ensure that the company of interest will present to you a potential increase in stock shares and pricing.

We are advised to monitor the market closely and keep up with the latest news and trends. Yet, we are also advised to monitor the market as well as the companies of interest to you before you begin to buy or sell shares. Brokers encourage us to read the penny stock newsletters to get a richer understanding of how it works. By reading, the newsletters you can achieve a richer understand and learn about the pros and cons in the stock market exchange. Try to avoid stock market trading until you get a richer understanding of all the details involved. You can seek expert advice online from the professionals in the stock markets. Any people who are able to apply that information and advice properly, it can often make those who follow the advice a better trader.

Other risks to consider:
We are encouraged to avoid joining penny stock services from those that send e-mails, faxes, or call your home or office. Try to avoid such risks. Also, avoid messages that offer you information on web sites that claim to offer penny stock exchange services. Investigate any company or web site before you provide your personal information.

If you choose to join in penny stock trading, try to find a good broker. Brokers are people who offer you broker accounts for nominal fees. Once you open the account, you can start investing in stocks and the broker will deduct the small fee from your account. The fee is issued to pay for the brokers expenses. Never expect to get any advice from brokers because these people are account managers and not advisors.

Avoid signing up with any company that sends out free newsletters. Most they have scammers trying to get your money. You never know who is offering legal stocks. When you are looking for penny stocks to watch, the process involves researching the internet and keeping up with the trends. When you know more about the trading industry, it can help you reduce risks by making smarter choices.

Last minute penny stocks to watch
New investors often go into the penny stock market believing they can get rich because the prices are low and potential growth is present. Many people have lost lots of money because stocks trading for pennies lose their value quick. SEC warns us to understand that penny stocks are high-risk investments and any new investors should stay alert to the risks involved.

For more information, consult with Paradigm Capital Management, Inc. Paradigm is a trusted leader in Penny Stock or Small Cap Investing. The Paradigm Funds family of no-load mutual funds makes the firm’s small-cap and SMid-cap strategies available to fee-based financial advisers and retirement professionals. Paradigm Funds are widely available on more than 50 no-load platforms.

To learn more about how Paradigm Capital Management’s capabilities align with your long-term goals, please contact us at (518) 431-3500
Or visit us here: http://paradigmcapital.com/