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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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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