Diamonds in them there stones
TSX Venture Trading:
The TSX Venture is owned by TSX, and is an exchange for start-up and developmental and exploration companies that seek financing, much like the OTC BB in the USA.
I include this stock exchange for trading penny stocks, along with its parent TSX, because Canadian stock trading was a hobby of mine years ago through a stock broker that specialized in Canadian stocks - especially mining stocks.
TSX Venture trading can be risky for those who to do not understand them.
• Do your research on the company you are interested in incluing their products in development, exploration projects, etc. before investing just as this site shows you.
• The risks mainly involve developmental and exploration companies when TSX Venture trading. Many of these companies appear to be companies in name only (shell companies) with little to show in true development of products or services.
Most of the stocks on the TSX Venture will likely never see a profit.
Share prices likely will remain dead in the water with some eratic short term trending. You will never know if such companies are high quality high potential unless you do your research and then call the company as well.
Researching good companies to invest in on the TSX Venture can be tedious and time consuming because there are many of them to sift through. But the research is definitely worth the effort because of the super huge potential returns on the high potentials you find among the riff. If you find a solid speculative play, then you are definitely looking at a realistically potential 3 to 20 times your investment (300% - 2000%).
• Researching Canadian stocks for TSX Venture trading is possible because TSX regulations require these companies to meet full disclosure requirements similar to the Nasdaq. So, although these stocks may appear similar to Pink Sheet stocks, they are definitely easier to study and invest in - similar to stocks on the OTC BB.
TSX Venture Trading Speculation
• Today we see a resurgence in penny stock trends in the areas of renewable energy, hybrid vehicles, precious metals, green energy and biotechnology. The TSX and TSX Venture are full of such companies. The investor who is patient enough to sift through and study such companies will likely find a diamond in the rough and be greatly rewarded beyond imagination!
• Profit potential to the investor can be extremely huge, making an average Joe wealthy practically overnight.
In the mid 1980's, when penny precious metals mining stocks were just beginning to experience a resurgence after a severe sell-off that lasted for many years (similar to what is now happening with biotech stocks), solid developmental mining companies could be bought for pennies that were once many dollars per share. . .
. . .If an investor patiently sifted through the companies, he/she could buy a company like Queenstake for 7 cents a share and sell for $3.50 or $4.00 within a month for a profit of at least 50 times (5000%) his/her investment. I use that example, because that was my gem! Imagine turning an investment of $5000 into $250,000 in just under a month.
TSX Venture Trading requires in depth research to locate and capture profitable trades
Especially for TSX Venture Trading, you really have to know the sector of stocks very well to prepare for such investing. You have to know the companies well to prepare yourself for an exploration stock that may likely have great potential to hit gold - literally or figuratively. You will see such stocks trading for just pennies.
Some of these will likely be successful and will rocket in price from a few cents to over 50 cents to as much as a few dollars.
TSX Venture Trading Research
The only way to find out if a company's exploration or development will have high potential to succeed is to thoroughly research any news you can find on the company and CALL THE COMPANY UP and talk to a representative that is willing to talk with you.
You want to find out how the drilling and prospects for success are before the news gets out. Usually the management will have some pretty good ideas.
Management of TSX Venture companies can be quite friendly and helpful if you show interest and treat them with respect. They will provide information that you must listen carefully to in order to find hidden meanings. The more you talk with them, the more they are likely to spill the beans and reveal things to you.
TSX Venture Trading in Technology Stocks
I believe Technology Stocks will see the next big resurgence in share values after a huge sell off some 7 years ago from $10 to over $100 a share to just pennies. It was a feeding frenzy for sure.
Can you see the similarities with technology stocks as it was with precious metal mining stocks in the 1980's?
This resurgence will come and will come with a vengeance!
Approximately 120 technology companies are traded on the TSX Venture. KNOW them well. Do your study now of these hidden gems while most other investors do not even know they exist.
In time, the highest potential technology stocks that trade on this exchange will explode in value to thousands of times their values. That time will come when the major economies of the world are again stable and growing.
That is when traders and investors will pull out of mining stocks and invest again in technology stocks - like they did 8 to 10 years ago. At that time, technology stocks that are now trading for pennies were trading anywhere from $10 to over $100 per share.
Don't let anyone tell you that all penny stocks are nothing but scams. Many of them are technology stocks that were once trading 10 to over 50 times what they are now trading. Many of the best of these will rise again.
That is why I keep repeating to screen for penny stock that have a history of at least 3 years. These are your greatest proof of what they were, and are, and could be in the future.
TSX Venture Trading Exploration Stocks
Exploration stocks are a fad right now, so most are going to be overpriced. Research will most likely be difficult and time consuming. If precious metals were just beginning a resurgence in interest, then obviously that would be the best time to find great deals to invest in. Now is not that time.
If you have the time and desire, then research, in depth, the exploration mining stocks as well. Mining companies are gaining greater technology and are becoming creative in finding new precious mineral and oil reserves and other sources of energy.
Sometimes the small companies with knowledgeable techie management strategically position themselves to find precious reserves where larger companies fail. This is happening all the time.
The TSX Venture is home to such high potential exploration penny stocks. Such stocks could still make you 5 times your investment or more even in a fad market like precious mining and precious metals. Obviously these start ups do not have the history to research, but you can call them, and research them. Find out what they are up to.
What would you do to become a millionaire?
You have now completed this subtopic TSX Venture Trading
When you are ready, continue on. . . Next Lesson: OTC Stocks - High Potential penny stocks are found with Extraordinary profit potential.