The Over The Counter Stock Market If For Experienced Investors
It is true that investing in small companies is riskier as compared with others but it is also true that they are more rewarding. But you have to have a lot of experience in investing and share market to achieve the most out of it. The best way to go ahead is to buy a fund or else the transaction costs will be significantly high. With online marketing in place now, the scenario has changed but the basics remain the same. New rules have been implemented in quoting the price to create a better liquid market.
Pay Close Attention
However, there are three admonitions and the most significant one is that you have to pay close attention to rudiments like operating the cash flow, earnings and the book value. Buy any stock from the index of the big companies and expect to pay close to the fair value. On the other hand, if you buy a stock randomly from the Over The Counter Stock Market Bulletin Board you run into the risk of overpaying. Therefore, avoid the scammers.
Some Other Cautions
Another point of caution is that you should place on ‘limit orders.’ This will specify the maximum price you are willing to pay and the minimum price you are willing to sell. On the other hand, the ‘market order’ is an open invitation to be extorted by the market maker that fixes the price. Lastly and most importantly, be patient as the investment horizon extends to years and not months just like any other Los Angeles Real Estate Investment.
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