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Stock Trading Strategies

Investing in the stock market can be daunting, especially because the risk of making a mistake could cost you money. Where do you start? How do you decide what stocks you want to trade? Having a proven stock trading strategy can help alleviate this anxiety.

When you’re entering the stock market, it’s important to learn how to invest from an experienced stock advisory service. If you’re just starting out, a professional adviser can help you make a smooth and successful entrance into the stock market.

If you already have a stock portfolio but are not following a trading strategy, an investment advisory service can help you optimize your current efforts with stock market predictions, investment advice and stock recommendations.

Chuck Hughes provides professional stock advisory services. He has been trading in the stock market for over 30 years. He has been consistently successful in his career and is open with records of his trades. Chuck’s stock market advisory service can increase your potential for profit when investing in stocks and reduce your risk of loss.

If you’re ready to receive stock trading strategies and learn how to make money in the market, call Chuck Hughes now at (866)661-5664 or Get More Information about Chuck Hughes’ exclusive stock advisory service.

The First Step of Stock Trading: Determine Your Market Level of Investment

The stock market is full of complex stock trading strategies. However, stock trading strategy is dependent upon which level of the stock market you plan to invest in. Thus, the first step when investing in stocks is deciding at what market level to participate in.

Investment opportunities come in a broad range of sizes, from small cap to large cap. Cap refers to market capitalization. A company’s market capitalization is calculated by multiplying the price of a stock by the number of shares within a company.

Example of Market Capitalization

  • Market Capitalization = Market Value of a Company
  • Market Value of a Company = Stock Price X Total Number of Outstanding Shares
  • Market Value of Company ($1,000,000) = Stock price ($10) X Outstanding shares (100,000)

Learn Stock StrategiesThis calculation is the market’s estimate on the value of a company. A company’s market capitalization determines what level of stock trading company they are. Levels include:

  • mega cap
  • large cap
  • mid cap
  • small cap
  • micro cap
  • nano cap

Small cap stocks are shares of smaller companies and large cap stocks are shares of bigger companies. Labels such as large and small are subjective, they are relative, and they change over time. Large does not always mean less risky, but the large caps are the stocks most closely followed by Wall Street analysts. The attention given to the large cap markets does tend to push individual investors towards investing in smaller cap markets, as this is where the potential for value-plays are.

Mega Cap Stocks

The mega cap market is comprised of companies that have a market value of equal to or greater than $200 billion. In 2007, there were 17 mega cap stock companies; by 2010 there were only 5.

Before the Great Recession, the mentality in the stock market industry was that the bigger the cap, the lower the risk. After the collapse of companies within the mega cap stock market, traders began to associate risk with any level of market capitalization. The years between 2007 and 2010 changed market capitalization and redefined what investors viewed as low-risk investments.

Only .1% of all stock market trades are traded within the mega cap stock market; most of these investments are from industry investors on Wall Street. Mega cap stocks generally include companies from the United States, Europe and Japan. Examples include Apple, Nestle and IBM.

Large Cap Stocks

The large cap stock market is made up of companies that are worth between $10 billion and $200 billion. These company’s stocks are referred to as blue chip stocks. This level of stock is frequently traded by stock market advisory services and traders on Wall Street because this market level produces the most lucrative investment banking. However, in reality this level of investing represents a very small portion of stocks that are traded; only 3.5%.

Examples of big cap stock companies include Walmart, Microsoft and General Electric.

Mid Cap Stocks

Investors in the mid cap stock market invest in middle capitalization stocks. Companies with a market value ranging between $2 billion to $10 billion are included in the mid cap stock range. The mid cap zone accounts for 7.4% of all stocks traded in the stock market.

Examples of mid cap stock companies include Ann Taylor, Cabela’s, Dollar Tree, Franklin Electric and Ruby Tuesday.

Small Cap Stocks

Join Chuck's Micro Cap Trading Advisory ServiceThe small cap market includes companies with a market value worth $300 million to $2 billion. Small cap companies often have high stock prices and relatively few stocks for purchase or trade when compared to large cap companies. The small cap market accounts for 17.6% of stocks.

Small cap stocks provide an advantage for individual investors as opposed to investing companies. If an investing company were to invest in a small cap stock, they could quite-possibly buy enough stock that they would have to abide by SEC requirements. SEC requirements need to be met when an investor buys a large enough portion of the company.

In order to meet SEC requirements, the amount of stock and stock value traded has to be made public. Individual traders purchasing stock from a small cap market are generally immune from having to abide by SEC regulations due to the fact that an individual trader would most-likely not be able to buy a big enough percentage of the company to meet that requirement.

Examples of small cap stock companies include Meridian Bancorp, Trex and Abercrombie & Fitch.

Micro Cap Stocks

Micro cap stocks account for companies with a market value worth $50 million to $300 million. This market accounts for the largest percentage of stocks in each cap category; 18.8%. What makes this market so popular for investors is the ability to make a large ROI (return on investment). These small companies have the ability for growth; and that growth can be lucrative for investors.

Chuck Hughes advises traders to invest in the micro cap stock market. This market is where Chuck Hughes has made an abundance of money using his personal micro cap strategies. Just take a look at his micro cap trade results. If you are interested in receiving exclusive trade recommendations that include a high potential for profit, learn about micro cap trading strategies through Chuck Hughes's micro cap guide book or join Chuck's micro cap profit alert.

Examples of micro cap stock companies include Riverview Bancorp Inc., Zix Corporation, Ladenburg Thalmann Financial Services Inc. and Avino Silver & Gold Mines Ltd.

Nano Cap Stocks

Public companies with a market value that is beneath $50 million are considered nano cap markets. Nano cap markets are also called ‘penny stocks’. They are often associated with an increased risk, and comprise 15.8% percent of stocks within the stock market.

Examples of nano cap stock companies include Allied Healthcare Products Inc., ARCA biopharma Inc. and BioLife Solutions Inc.

Stock Market Trading with Chuck Hughes

Join Chuck's Stock Market Advisory Service Today!Chuck Hughes has been trading in the micro cap and small cap stock markets for over 30 years. He has won 8 ​International Trading Championships; that’s more than anybody else in Champion Trading history. Chuck Hughes has a consistent and successful history in trading stocks in the micro cap and small cap market.

Chuck Hughes offers a micro cap trading advisory service. This service offers traders a way to enter into the stock market without having to invest a lot of money. Even with just $2,000, you can start investing in diversified stocks in both the micro cap and small cap trading markets.

Research has shown that investing in smaller companies provides a greater ROI (return on investment) than larger companies. You can increase your chance of profit and reduce your risk of loss by following Chuck Hughes’ stock option tips.

Use Chuck Hughes as Your Stock Advisory Service

As a member of Chuck Hughes’ stock advisory service, you’ll receive proven strategies and stock trading tips, including the trend trading strategy. Even in markets that are depreciating, you’ll be provided with tips for stocks that are appreciating in value. Chuck’s trading recommendations can increase your chance for profit and minimize your risk of loss with stock trading strategies in the micro cap and small cap markets.

Call Chuck Hughes now at (866)661-5664 to take advantage of his stock market advisory services and receive stock trading strategies to learn how to make money in the market.

Not ready to improve your portfolio? Get More Information about Chuck Hughes’ exclusive stock market advisory services by Joining Chuck's Email

Futures trading involves high risks with the potential for substantial losses. Hypothetical performance results have many inherent limitations, some of which are described as follows. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. there are numerous other factors related to the markets related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. Option and stock investing involves risk and is not suitable for all investors. Only invest money you can afford to lose in stocks and options. Past performance does not guarantee future results. The Chuck Hughes Inner Circle Advisory trade record does not represent actual investment results. Trade examples are simulated and have certain limitations. Simulated results do not represent actual trading. Since the trades have not been executed, the results may have under or over compensated for the impact, if any, of certain market factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.