Archive for the 'Small Cap Investing' Category

Jul 30 2017

Small Capital Investing

Published by under Small Cap Investing

With regards to day trading for beginners, a bit of caution and instruction go a significant way. When many people begin making trades on-line they generally have taken a substantial period of time scratching together a small capital to invest on the marketplace. Quite often individuals have made significant sacrifices to be able to raise money to invest. Then they’ve this misfortune of going into the market and losing a major chunk of their first bet with their first few trades. This is not necessarily true: day trading for beginners could be performed on the cheap. At the introduction we talked about the investor working very hard and saving money to invest.

 

A prudent person would spend a bit of time and cash familiarizing themselves with the a variety of investments offered and try to produce the best selections potential. A lot of people do try to do that themselves and feel safe when they click the mouse to create that first trade. These same traders quickly determine that they were horribly wrong. The truth is that while many novice investors have read a few books or articles on the stock market, more often than not the equities \/ stock market is the last place the beginner must put their money. This is particularly true when speaking about day trading for beginners.

 

The stock exchange is the realm of exceptionally capitalized, exceptionally sophisticated investors and associations. Is that actually the place for a little bet player to be learning the ropes? The simple reality is this stocks are where the most costly lessons are taught. The first lesson for beginners course in any day trading should be that there are numerous other locations to trade and earn money, and most of them offer better potential results than equities. Face it, day trading for newbies is a learning experience first.

 

Does that mean a novice need to read dozens of books on the subject before opening an account and placing trades? Not necessarily, but a little research on the web will expose the newcomer to numerous alternative investments that are profitable at lower capital commitment levels – and that is key for novice traders.

 

Consult with C.L. King & Associates for more details.

C.L. King provides investment banking, equity research, sales and trading, and investor services to corporations and institutions. In addition, we transact directly in the capital markets on behalf of corporations through our Corporate Services business focused on share repurchase and continuous share offerings (“ATMs”).

Also read: Micro Cap Stocks – CL King

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May 08 2017

Why Equity Research Reports Are Important?

Any investor needs to know what the conditions of the market are, to know how their fund could perform. Considering how a millions things tend to influence the market, you need to know the pulse of the market intimately. If you’re an investor, or are considering investing, then you need to be up to date about the market conditions as well. But how do you find out? The answer is: equity research reports. These are an important part of the market – they allow you to know the recent trends and allow you to predict some possible future trends. These are reports that allow you to know what the value of a bunch of stocks is – and you can then decide whether you want a piece of it. This can be extremely helpful to the beginner, who is absolutely clueless about where to begin.

 

Generally, the equity reports are brought out by the big broking institutions or the investment bankers. These are institutions that will give the report freely to their own clients. There are also some companies or business houses that publish the report free of cost to the public. There are a lot of things that are considered when writing the report like the looking through the disclosures that companies periodically make. They dig through news in order to gather information about the company’s performance, meet up with multiple analysts and they calculate how much each share in the company is truly worth. The reports are written by highly trained analysts – they are experts in the industry, with a good knowledge of gauging stocks. Once that’s done they publish the report. The report might recommend a particular stock that you need to keep on hold or might need to buy or sell off. The basic idea is that you get advice on how involved you should be in a particular share.

 

For rather obvious reasons, you need to do your research before you invest in the market. You need to know the company that you’re investing in along with the sector. While you read the reports, pay attention to what you have observed as well, about the fluctuations or stability of the market. You need to take advice, but you should also know to trust your instincts when you’re about to invest. When investing, you need to diversify your stocks, so that you can balance your investment should one of them suffer. These are simple things that you need to keep in mind to improve your investment management.

 

For more details you can consult with us at CL King & Associates.

CL King & Associates is Uncovering Hidden Investment Opportunities Since 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.

 

When combined with our strong capital base, we are an active securities underwriter. We co-manage bond offerings, IPOs, follow-ons, secondaries, convertibles, and preferreds. In addition, we transact directly in the capital markets on behalf of corporations through our Corporate Services business focused on share repurchase and continuous share offerings (“ATMs”). CL King is also a leading woman-owned securities firm and is WBENC-certified.

Call us 518.447.8050 today and let us explore some best investment deals for you!

Or visit us here: http://www.clking.com/

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Apr 22 2017

Small Cap Investing Strategies Suggested by CL King Experts

Published by under Small Cap Investing

Before you begin investing in small cap stocks, you’ll want to know what they are. The term small cap makes reference to the market capitalization of a business. These numbers can vary, but small caps are usually companies with a market capitalization between $200 million and $2.5 billion. As a side note, don’t confuse small caps with micro caps. Micro cap fund and mutual funds; for example, invest in companies with a market capitalization of $50 million to $300 million.

 

You can find small cap stocks nearly everywhere. They’re the small cap startup companies that sprout up nearly every single day. Due to their small size, these companies have the potential to scale quickly. This can mean huge rewards for early investors. Small-cap stocks are ideal for individual investors because of the small amount of competition from institutional investors. Institutional investors tend to have massive funds, and they’re typically only interested in investing in bigger companies that will move their bottom line.

 

There are many small-cap investment strategies out there that can lead you to success. With the proper strategy and proper research, you’ll be able to get started on the right foot. Here are a few sound small cap investing strategies, which our experts at CL King always suggest.

 

Keep an eye out for paradigm shifts
Try to search for paradigm shifts in any area of business that provides a new, unique solution that is provided by an individual company. Then, seek a supplier who would also play a part in this paradigm shift. An excellent example of a paradigm shift would be the transition from CD to DVD.

 

Invest in companies before they’re discovered by institutions
You want to do your research and find a small business with potential before a large institution takes notice. If an institution has begun to invest in said company you only want to go in if they have less than 50% ownership. You’ll want to avoid businesses with heavy institutional investing because their investments will cause the value of the stock to shoot up in price.

 

Only Invest when there is huge market opportunity
You only want to invest in a company that serves a massive, growing market. You want to focus on company’s in flourishing markets because the potential for massive growth can be exponential with even a small market share. The very size of the market is what creates the potential for major gains. It also reduces the investor’s risk profile.

 

Only focus on stocks that offer both value and growth
When investing in a company, you always want to look at the numbers. Idealistic business goals aren’t a solid enough proposition to make a sound investing decision. You want to search for companies with significant growth in their sales and despite their success, are still undervalued by the market. It’s a huge plus if the company has cash on hand and low debt. Cash on hand demonstrates that a company can likely carry itself if something unexpected happens.

 

Control massive losses
Small cap stocks are infamously volatile. Some small caps have been known to skyrocket by over 100% overnight, yet the same can happen in a downward trend. To protect yourself while investing in these stocks, you want to use stop losses. A stop loss is an order placed with a broker to buy or sell once the stock reaches a certain price. It’s suggested that you create stop losses with a 25% to 30% margin. This way you can avoid catastrophic losses if a stock decides to take a dive.

 

If you have any doubt or query consult us at C.L. King & Associates.
C.L. King & Associates is a full-service investment bank and self-clearing broker-dealer founded in 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
When combined with our strong capital base, we are an active securities underwriter. We co-manage bond offerings, IPOs, follow-ons, secondaries, convertibles, and preferreds. In addition, we transact directly in the capital markets on behalf of corporations through our Corporate Services business focused on share repurchase and continuous share offerings (“ATMs”). CL King is also a leading woman-owned securities firm and is WBENC-certified.

Visit us here: http://www.clking.com/

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