There is a lot of talk about demoting an account from one trading level to another. But what does this mean and how does it affect you? Money made by demoting an account will go into some kind of loss. Let’s explore these concepts and see if they hold up in a real-world scenario.
Strobeons are the most popular form of demote account. This is where you buy one or more stocks and then sell them all at once when you reach the limit on your account. This can be great for making money on penny shares as it can happen fast and there are very few stocks being traded per day. But what does this mean for you?
If you only have a few shares to invest, you may not face losing much money. In fact the rate of return on your initial money could be high. But if you have dozens or hundreds of shares to trade you are likely to lose money. Why is this? Because smart buyers will seek out good companies to buy from, those with the best long-term potential, before you do.
You can see how investing money from poor countries, which have little money, can benefit you in two ways. First off you will have access to some of the most amazing shares on the market. This means that every penny you spend will go straight to your pocket! And secondly your company would be able to pull in some profits from the sale of the stock.
So this brings us to the second point: buying stocks from poor countries could also mean investing money in companies that export goods, like Nokia or Sony Ericsson. Most countries don’t have access to the export market and would have to import goods to sell. So you might as well look for products where the people are buying the goods that you want to sell! These are usually luxury items such as cars and properties. Again, because you have access to these types of products when you invest in exporting companies would be a good place to start.
So if I was faced with the situation of having to demote account, I would approach a demotion adviser first. There are many out there that deal with these issues and who would be able to give me a good plan of action. As long as I kept my eyes open and prioritized what I needed to do, I wouldn’t have to face losing my money, my only investment for the year! The worst thing would be to find myself still holding a poor investment portfolio when the next big shift came along.