I think i have come up with a rather interesting way to cashout CVV's. I need the help of someone whos knowledgable in stocks/shares to give me a few pointers.
Any help on this matter will be rewarded with being the first to know of my method before i release it publicly!
Penny stocks (term used for stocks that are below 5$, but mostly referred to stocks that are traded in cents or fractions of cents) are all about hype. 95% of these stocks go bankrupt; but if someone creates enough hype for the stock, it will shoot up 100%+. People spread false news to make other people buy the stock so that it skyrockets. This happens with penny stocks a lot.This bullish wave will last between a couple of minutes to at the most a day or 2.
Regular stocks are safer than penny stocks because they are companies with legitimate investors and are far less likely to go bankrupt. Stocks go up and down based on the supply/demand. If more people are looking to sell the stock than buy it, the price of the stock will go down, and vice versa.
You can profit on stocks in many ways. Here are a couple:
1. When a company releases its quarterly earnings; if the earnings beat wall street expectations - the price of the stock will go up. I've seen non-penny stocks jump up as high as 25% on quarterly earnings release, simply because they beat expectations. At the same time, if the stock goes below expectations, the stock may lose value.
2. When a company acquires another company, the shares of both companies will go up, especially the shares of the company which was aquired.
3. Certain companies that rely on approval from the government such as casinos and pharmaceutical corporations; when the government rules in favor of the company - the stock will go up. Here's an example:
http://www.google.com/finance?q=NASDAQ:CZR&ei=_tUWUYimKqSCwAPsUQ ....this gaming company's shares went up 30% because the government is going to rule in favor of it...
http://articles.chicagotribune.com/...o-operator-shares-surge-caesars-entertainment
Basically, if there is good news for the company, its stock will rise. Bad news will make the stock decline.
Here's another example:
In this scenario, a reputable hedge fund manager told the media that he is shorting herbalife's stock because he believes the company is a fraud and will go bankrupt.
http://www.google.com/finance?q=NYSE:HLF&ei=E9YWUbDJDOaDwAOGTg
This company's shares dropped over 50% value in december simply on this news.
These are the basics for stocks. If you want to learn more, check out
http://www.investopedia.com/
