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What are small cap stocks and penny stocks-

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What are small cap stocks and penny stocks- Powered By Docstoc
					?Stock trading has made many millionaires and billionaires all over the world. All you
need to have is strong decision making power and will power. As it is a high risk
activity, that is why, people who are a newbie in this addictive industry start with
small cap stocks and penny stocks. Read on this article to know more.
A penny stock is a common word for all stocks and shares that are traded in small
denominations which means that the market values of these shares and the IPO and
face vales of these shares are small. Small cap stocks involve small capital investment.
If you think a small company has a potential to do well, then you go for these two
kinds of stock trading. Trading in the stock market is of two types - delivery based
trading and day trading. In delivery based trading, shares of companies are bought and
sold after a long period of time once you get the desired appreciation in their price. In
day trading, you buy and sell your stocks on the same day. Both the trading types
involve high risk and stock market is one unpredictable creature which could lay his
hands on the profit side or on the loss side for an individual.
Stock trading can be safely done with the help of an experienced stock broker. A stock
broker is a person, who is well versed with all the activities of a share market and
knows when to put money in a penny stock or a small cap stock or when to put a huge
amount of money in buying shares of a big company. With their experience and
knowledge, they can guess or predict where the market can go and advise you to go
for a safe investment. There are many agencies from where you can hire stock brokers
on commission basis and they would take your entire headache related to stock
trading. Once you hire a broker, then all you have to care about is money flow. Small
cap profits is an agency which has got the best in the business experts for small cap
stocks. They would help you in stock trading both online or offline and would keep on
advising you for which companies you should buy shares from in order to earn
maximum money out of them. All you have to look for is a genuine company with an
expert staff.

				
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