Sunday, October 23, 2011

Five Great Stocks for Kids Under 12

By Kenneth Darren


One last note about limit orders. As you know a stock has a range that it will "wiggle" in during the course of the day. XYZ may open at 50, go to 51, pull back to 49.75 squirt ahead to 51.50 and end the day at 50.75. So one way of playing XYZ is to watch its daily range and place a limit order at or just below its bottom range. For instance if we see that XYZ generally has a full point of "wiggle" to it during the day and at 10 am it's trading at 50.50, up 3/4 on the day, why not place a limit order at say 50. that way if during one of its wiggles it falls to 50 before picking up again, you will get it. (Note: you would only do this if you are in no big hurry to own XYZ, it may not wiggle down to 50 and you'd never get it.)

Two other concerns that investors should be aware of - liquidity and difficulty of trading. Liquidity, as you might already know, means that we are able to buy and sell a stock in a relatively short timeframe. The good news is that most of the stocks traded on Pink Sheets are traded every day.

Let me ask you a question. Do you want to be an investor that stands out from the rest by being able to profit in good or bad times? Or do you want to be like everyone else who profits when company makes money but loses and not knowing what to do when company loses money? You decide.

I wanted to start a non-profit. In fact, it was more than just wanting to, I saw a real need for it as I volunteer in the community and see first hand the dire need. Homeless children who can't get proper medical care or a proper diet - and who are sometimes dealing with dysfunctional parents. It is very sad. However, I didn't have as much cash reserves as I have now and I simply didn't feel it was prudent to use my own savings to start the non-profit. I couldn't seem to raise enough money even though it was a really good cause. Times are hard and charitable donations have waned considerably.

While you have probably heard about stocks that pay dividends every quarter, did you know that there are many stocks that pay monthly dividends? When most income investors think about investing for dividends, they naturally look at safe, stable companies like McDonald's(MCD), Proctor & Gamble(PG), and IBM (IBM), which have a long history of paying quarterly dividends. These types of dividend stocks are usually financially stable, have a lot of liquidity so they are easy to buy and sell, and have enough income and cash reserves to cover their cash dividend payouts to investors every three months.

The government debt ceiling will be raised. Maybe it's going to $17.0 trillion or even $18.0 trillion. The actually passing of the bill will be a non-event for the stock market, as the market never considered that increasing the debt limit would be a problem. Finally, the government will do it best to reach its new debt ceiling as soon as it can.

Investor relations firm was a new concept few years back but is more commonly used today by companies around the world. Their popularity is mainly due to the fact that issuing and selling small cap and penny stocks is a very tedious, stressful and time consuming process. Investor relations firm will not only reduce the stress but will also aid in brand creation and maintenance.




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