A lot of investors will usually start out with a modest amount of capital.
This typically means that right away they start looking at so called ‘Penny Stocks’ – stocks or shares that are under $5 – usually even under $1! because they want to be able to buy a lot of shares.
The problem is though, that Penny stocks are cheap for a reason – usually no one wants them because they don’t have the earnings to ‘back up’ the price. Most have negative earnings in fact, and are losing money.
An excellent alternative to consider for the ’small’ trader is buying Stock via CFD’s – offered by many Metatrade (MT) Brokers.
And this method of trading offers some significant benefits, such as:
They usually need only 10% of the price
They offer the very best of stocks – the DOW companies such as GE, Walmart, Exxon, AT&T etc
You can have both long and short positions without the ‘canceling’ effect that you would typically have from other brokers. In fact each position or ‘Lot’ is separate so you can actually close out individual positions
|
The first point mentioned is worthy of note..
lets say you wanted to buy 100 shares of Walmart at $50 per share.
With regular brokers this would have cost you
(100 x 50) = $5,000
However with an MT broker would need only come up with 10% of this ( or in this case $500 ), to control the same quantity of shares!
That’s a big, big difference. Imagine the possibilities!
There is even one broker that would allow the same purchase (of 100 shares) for 5% or $250!
And the neatest thing is that you are not buying into companies you don’t know about – most people don’t think that companies of the likes of a Walmart or Exxon are going out of business any time soon!
An excellent way to trade these companies is to use a program like OrdersEA© or StochEA© offered at www.LetYourComputerTrade.com (LYCT).
This company offers a monthly subscription where you set up the program to work on you your computer each day, trading for you automatically based on the settings you put in. Typically it will buy and sell small amounts of shares during the day so that at the end of the week you can transfer your money to your bank account.
They have a free trial at http://www.LetYourComputerTrade.com.
Just something to consider.. you’ll never know until you try it for yourself.
Click here to view rest of article from original site
|
|
|
