Junior Markets: Should You Invest?
Junior Markets: A market for trading in shares of smaller or younger companies. Sometimes seen as a riskier investment, junior market stocks offer higher growth potential than your standard main market or “blue chip” stocks. Being listed on a junior market is easier as they are less strict, and are often seen as a stepping stone to a larger market, especially for high growth businesses.
Often called a penny stock, it is used to describe securities trading for up to five dollars or less. As their share prices are very low, a minor price change will translate to big swings in percentage value, so this is something you have to keep in mind.
Junior markets do not trade on large public exchanges and take place through the electronic Over-the-Counter Bulletin Board instead. It’s rare for junior markets to make it to more formal trading floors because most of the businesses trading shares worth a few pennies will not survive.
If you are interested in investing in junior markets, you need to first open an account with a discount broker because you will want to keep your trading commissions as low as possible. The lower the trading commissions, the more you will get to keep from your trades, meaning higher profits. Next, you will have to research and select which junior markets to invest in and this can be tricky because there is not a lot of information available on the companies, which can make the process very challenging. Stick to reputable investment websites and verify as much of the information as you can.
You will then have to purchase the number of shares you want to own and once you’re holding junior markets in your portfolio, you can craft your exit strategy because you need to be ready to sell your stocks as soon as they hit your desired prices. You need to watch your junior markets very closely and must understand your target pricing before you make your trades because this will allow you to sell immediately whenever the stock falls or rises. If you want to make real money, you have to be alert and aware because junior markets are different, and an active investing strategy is required.
The reason why people invest in junior markets is that they are very affordable, so they are more accessible when compared to traditional securities listed on larger exchanges. Additionally, their volatility can result in massive gains if you know what you’re doing, so there are several advantages to this option, especially for experienced traders who have extra cash to spare. Those who have taken care of their long-term financial security through safer investments can play around with junior markets because gambling won’t affect their finances, but if you are interested in a low-risk investment, this option is not for you.
Ultimately, you have to consider the risks and the rewards of investing in junior markets because this will help you make an informed decision. You need to weigh your options because junior markets are not for everyone, and Supercharge Stocks will help you decide if this option is right for you. If you are curious about which junior markets to buy now, we can help, so contact us today!