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What You Need To Know About Penny Stocks

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Wall Street New York Stock Exchange
  • What You Need To Know About Penny Stocks

These are stocks that trade for less than $5 in the exchange. They are often offered by smaller companies. Since they are traded in the smaller markets, penny stocks are not subject to the same standards are the rest of cap stocks.

If it’s your first time investing in the stock exchange, you can always start with penny stocks to learn the tricks of the game before moving up to the larger stocks. Keep in mind that without the best advice, you’re likely going to make costly mistakes. Therefore, starting off with penny stocks can work as training wheels before dipping your toes in any other types of stocks.

The basic piece of advice you will find when you’re starting out in stock exchange is that you should hold your stocks for a specific period after buying low to make a profit when they sell high. During these fluctuations, penny stocks are always the best place to start. They can be bought and traded daily for the best results.

Why Should You Choose Penny Stocks?

Here are a few reasons why should choose penny stocks immediately.

  • They sell for a considerably lower price than the other types of stocks. Therefore, you can always participate in the stock exchange without spending too much money.
  • If you’re looking to make quick profit, you can buy these stocks in large numbers and sell quickly. Make sure to have stock alerts set up to keep track.
  • If you take a look at the stock exchange market, you will find that there are many penny stocks you can trade in. Therefore, there are a lot of investment opportunities for you.
  • Purchasing and trading penny stocks can fairly easy and effortless.

Are There Any Disadvantages Of Penny Stocks?

  • Due to market volatility, the value of a stock can change causing prices to fluctuate rapidly. It’s tough to predict some of these changes.
  • Using marketing tactics it’s easy enough pump or destroy a stock which is a lot harder to do in a larger market with different types of stocks.
  • Trading in penny stocks often presents a higher risk because there’s little to no information about the companies selling these stocks.

Tips For Investing In Penny Stocks

  • Start by doing your research. Make sure to find out all the relevant information about any stocks and the company before investing. Note that, these companies are generally small and there’s very little information available. Therefore, you can always visit the company’s website to find out more about them before making your purchase.
  • Anything that you can find on these penny stocks can prove helpful. Also, if you know anyone else trading in the same, you can always ask for tips on how to commence in the exchange too. Always start small and grow your number as you move up. They are perfect if you’re looking for a quick profit but don’t put all your eggs in one basket.
  • Keep in mind that although these stocks are considerably cheaper than the other types of stocks, it’s not a good idea to buy them blind. Yes, regardless of the fact that you will make very few losses when your stocks sell lower than you actually bought, you need to do your research. Any loss, no matter how little will also affect your finances.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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