How to Day Trade Penny Stocks for Beginners: Find Out How You Can Trade For a Living Using Unique Trading Psychology, Expert Tools and Tactics, and Winning Strategies. by Bill Sykes

Chapter 1: Get Familiar with Stocks
 Have you thought about using any passive income sources? Do you have a
 desire to be part of a profitable investment? If so, you should definitely
 consider investing in the stock market. Though investing in stocks is a
 profitable venture, it is a difficult one. You will be required to learn several
 things in regard to stock investments before you can begin buying the
 quoted shares in the stock exchange market. Do not make the mistake of
 buying stocks before understanding the basics; you will regret it in the long
 run.
 To put it simply, one share of stocks is the representation of a partial claim
 that the owner has towards the earnings and assets of the issuing company.
 If the number of shares available in the market is higher, then it means a
 single share will have less worth. If one has a higher number of shares for a
 particular company, then that individual has greater control over the
 company. Any owner of stock in a particular company is regarded as a
 shareholder, implying that they own a portion of the profits of the company
 (Hayes, 2013). Such portions are normally called dividends. The payment
 of dividends is made on predetermined points of any particular year. If you
 have shares of a specific company, you may have voting rights regarding
 the decisions of the company, in which case you can influence its future
 progress.
 You should note that owning shares of a particular company does not give
 you an active say in the daily operations of the company. Owning shares
 provides you with entitlement to a profit share and voting shares. During
 the annual shareholder meeting, you have the possibility to vote for the
 members who constitute the board of directors. This is the moment where
 you have the chance to express your satisfaction or dissatisfaction towards
 the current setup of the company or how it’s run.
 When you decide to invest in the stock market, it is paramount that you
 understand the risk. Be considerate of the companies you resolve to invest
 in, and identify whether they pay out dividends; not all companies do so,
 and it’s not a guarantee that one that paid out dividends previously will
 continue doing it. This is because, when talking about the stock market,
 profits are never 100 percent guaranteed. It is impossible to count on

continuous stock appreciation in generating more value. There will be
 reasons that may contribute to the slipping of a given stock. It’s also
 possible that the company could declare bankruptcy.
 Don’t consider the risk with negative thoughts, though; consider it as a tool
 that can help you evaluate the potential of a given stock. If a particular
 stock presents a greater risk, then the possibility of reward is high if it
 moves in the direction you want it to. If you carefully take the time to
 understand the risk, you will generate a return that’s higher than the
 standard 7 percent promised by many investments; you may even reach a
 profit of 12 percent.
 Why Do Companies Sell Stock?
 A company sells stock when it needs to raise money. It can also do this by
 borrowing funds from a bank or another source (Metcalf, 2019). However,
 if its owners choose to sell stock, there are no repayment plans you’ll face
 in the future.
 There are a few different ways to sell stock. If a company’s owners want to
 control who is offered a piece of the pie, they sell stock through “private
 placement,” which allows the management to choose to whom the stock is
 offered.
 Chances are that if you’ve purchased stock or plan to do so in the future,
 you’ve done so through a public offering. Companies initiate public
 offerings, as was noted, in order to raise money. They may need money for
 a variety of reasons, including expansion or any other kind of further
 growth, or to pay back owners or investors who had a hand in starting the
 company.
 Companies set up an initial public offering (IPO), which is the first offering
 of stock, but they can also continue later with a secondary public offering if
 they need to raise more capital.
 A company that has stock that’s performing well is usually considered a
 stable company and tends to have an easier time raising money through
 lenders, as well, aside from the sale of stock.

How to Day Trade Penny Stocks for Beginners: Find Out How You Can Trade For a Living Using Unique Trading Psychology, Expert Tools and Tactics, and Winning Strategies. by Bill Sykes