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Wednesday, 4 September 2013
INVESTING:HOW TO TRADE STOCKS USING FINANCE LOANS AND MARGIN ACCOUNT.
INVESTING:HOW TO TRADE STOCKS USING FINANCE LOANS AND MARGIN ACCOUNTS.
Loan can be described as a debt evidenced by a note which specifies among other things,the principal amount ,interest rate and the date of payment.It may be for the starting of business in which case it is referred to as start up business loan or loan for the purchase of home in which case it is called home loan.But today,I will be taking you up on how you can can use a business financing loan to trade penny stocks in the stock market,made huge profits and settle the loan with ease.
Assuming you receive a loan of $200,000 and you decided to buy penny stock like Viking system Incorporated at $4, you would have been able to acquire 50,000Units with the loan.And as it is usually with penny stocks,they grow at a higher percentage than blue chip stock,even though the blue chips are stronger,and you can sell off whenever you feel unlike the penny stocks that can easily run into volume problem when the prices are at their peak.
If Viking system grows to $8 per share,say within four months,then you have made a 100% returns on your investment.The worth of the entire portfolio is now $400,000,that is,you have made $20,000(the $20,000 being the accumulated interest you have paid on the capital for four months)yes,with just $20,000 which is your only contributory cash,that is,the interest accrued on your account.Somebody,who never had a start-up capital for investment,now going home with such a huge amount,but you need to know when to apply this fund to achieve such a feet.
Nothing to worry about ,even if the market goes sour or remain stagnant for a long time or when the bears are crushing the market to standstill,you are gradually paying off the loan at ease.What an advantage?.
To maximize profits,always trade stocks that double in two days no matter what the stock market is doing.Please,see examples below:
Profit of 111.11% on CTEX in 2 days
Profit of 285.71% on MPWE in 4 days
Profit of 141.94% on SFPS in 2 days
Profit of 94.60% on WMFG in 3 days
Profit of 103.13% on CHCG in 2 days
Profit of 93.33% on AGSI in 3 days
For more information on how to make money trading stocks in the stock market ,visit my blogs.
http://www.onlinestocktradingmagazine.blogspot.com
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