You may have heard about these penny stocks and wondered exactly what they were. If you have had an email address in the last ten years then it is likely that you have seen email advertisements that are touting some penny stock and telling you that you can strike it rich for very little money down. These kinds of scams exist in many different areas of life these days and have become prolific because of the internet. They have given penny stocks a bad rap and it is not a true indication of what they are.
Penny stocks get their name from the low issue price. It is not to be taken too literally, though. They are rarely a penny, although it is possible. Their per-share value is capped at $5. There are some out there that define penny stocks in different ways such as market capitalization but this is not really accurate. While it is true that penny stocks are almost invariably small capital companies this does not mean that it is how they are defined. It is more likely that they fall into this category due to smaller capital but the Securities and Exchange Commission gives the stock price as the indicator.
So you might ask what is really the difference, and why would they have another category of stocks? Really, the thing that sets penny stocks apart from other stocks is where they are sold. Most of the stocks in companies that you are familiar with are sold on large stock exchanges like the New York Stock Exchange or the NASDAQ. Think of companies like General Motors or Coca Cola and you get the idea. You might not have heard of every company on these exchanges, but they are all large enough and offer enough stock to be there. They are also governed by the SEC and are watched much more closely with respect to financial reporting and transparency.
The penny stocks themselves are not governed by the SEC, but the brokers are. There are certain things that they are expected to do and in fact required to do. Technically they are not to solicit penny stocks, but must receive an order for stock from the buyer. The broker should always provide the advice that they have given you in writing, and they are required to send you a written report every month that makes it clear what you are holding along with the current price of the stock. It is wise to do a little checking with the SEC when it comes to your broker. You don’t want to find out after the fact that they have been disciplined for breaking these rules. There is no need to learn a hard lesson this way.
These penny stocks are traded on the over-the-counter market and they are not always that easy to find. The over-the-counter market is basically for those companies that do not meet the minimum standards to be on the major exchanges. They are sold by brokers, usually who deal primarily in this market.
For more details visit us at penny stocks
Saturday, June 27, 2009
Is it Safe to Trade Online?
This is a question that is almost invariably asked when someone is thinking of getting into the online trading world. For the most part it is fairly safe but there are things that you can do to make it even more so. As with any time in history, there are people out there that want to do things the easy way and get a thrill trying to take something that is not theirs.
If you have an up-to-date computer system with recent software you are one step ahead. Using a browser with 128 bit encryption makes it very difficult for hackers to get in and get the information that you are looking for. If you think of how many credit card transactions are done on the internet on a daily basis you will realize that this would not be happening if there was not a certain element of safety.
Another way of protecting yourself online is to use passwords that will not be easy to decipher. Do not use your dog’s name, or your mother’s maiden name. They might seem like they are not that easy to figure out but there are much safer combinations that you can use. First of all, using a mixture of numbers and letters increases the strength of the password. Using the same logic as the names, do not use your birthday or your address. Try using your friend’s birthday backwards followed by her middle name spelled backwards. It will be so odd that you can’t possible forget it, and nobody is going to guess that one on you.
Hackers can find your passwords in other ways as well and you need to be aware of them. There are viruses out there and trojans, some can even record the keystrokes you make and send them back through your own connection to a thief on the other end that will then have a party with your accounts. Make sure that you have up-to-date virus scan security software on your system.
Finally, watch out for things that are the traditional type of scam. The email that you get that promises penny stocks that will increase immensely in value in one week are an example. Nothing is that easy. If it was everyone would have done it already and that company would already be the size of General Motors. Be diligent and be safe, and you can enjoy the world of online trading.
For more details visit us at penny stocks
If you have an up-to-date computer system with recent software you are one step ahead. Using a browser with 128 bit encryption makes it very difficult for hackers to get in and get the information that you are looking for. If you think of how many credit card transactions are done on the internet on a daily basis you will realize that this would not be happening if there was not a certain element of safety.
Another way of protecting yourself online is to use passwords that will not be easy to decipher. Do not use your dog’s name, or your mother’s maiden name. They might seem like they are not that easy to figure out but there are much safer combinations that you can use. First of all, using a mixture of numbers and letters increases the strength of the password. Using the same logic as the names, do not use your birthday or your address. Try using your friend’s birthday backwards followed by her middle name spelled backwards. It will be so odd that you can’t possible forget it, and nobody is going to guess that one on you.
Hackers can find your passwords in other ways as well and you need to be aware of them. There are viruses out there and trojans, some can even record the keystrokes you make and send them back through your own connection to a thief on the other end that will then have a party with your accounts. Make sure that you have up-to-date virus scan security software on your system.
Finally, watch out for things that are the traditional type of scam. The email that you get that promises penny stocks that will increase immensely in value in one week are an example. Nothing is that easy. If it was everyone would have done it already and that company would already be the size of General Motors. Be diligent and be safe, and you can enjoy the world of online trading.
For more details visit us at penny stocks
How To Purchase Online Stock
Online trading depends on same principles & skills as offline trading thus make use of them to guide your actions and thinking.
Online trading has made boom in the stock market industry. It has also made everybody to enjoy an excitement & thrill of the stock trading online by using your computer. It has also made possible to carry on trading even though you are out from the town, thus, you can have proper check over market scenario from all over the globe.
In fast & busy life of today’s, nobody has got time to visit stock brokers and firms to collect information or else to invest in the schemes. Thus, discovery of the internet has now proved to be best tool in stock trading that has given a rise to online trade stock from comfortable ambience of home and office. There is no doubt, that the stock trading online is the most suitable way of trading but some points need to be considered when being involved in it.
You must always search correctly for renowned & reputable company prior to investing in the stock market since there are many sites on internet that carry out deal in business of selling & purchasing of the stocks. You must go through reviews & testimonials of other investors who are in link and you can as well visit the bulleting boards in order to grab information about various companies.
There is one more choice of investing in big name companies who have got their own stock trade online. You must invest in companies that are on their commitments in order that your invested sum should not go in drains.
There are lots of websites that are linked to buying or selling of stock to the foreign markets whereas few are linked to foreign & domestic markets. You must decide before with which company that you would like to begin trade in order that you must not mess up with the things. Example, in case you are interested in the domestic market but your have got linked with site that only deals in the foreign market then it may create problem for you. You must always opt for a site of the stock market who are fully safe as your personal and financial information needs to be inserted on a site to start stock trade online.
For more details visit us at penny stocks
Online trading has made boom in the stock market industry. It has also made everybody to enjoy an excitement & thrill of the stock trading online by using your computer. It has also made possible to carry on trading even though you are out from the town, thus, you can have proper check over market scenario from all over the globe.
In fast & busy life of today’s, nobody has got time to visit stock brokers and firms to collect information or else to invest in the schemes. Thus, discovery of the internet has now proved to be best tool in stock trading that has given a rise to online trade stock from comfortable ambience of home and office. There is no doubt, that the stock trading online is the most suitable way of trading but some points need to be considered when being involved in it.
You must always search correctly for renowned & reputable company prior to investing in the stock market since there are many sites on internet that carry out deal in business of selling & purchasing of the stocks. You must go through reviews & testimonials of other investors who are in link and you can as well visit the bulleting boards in order to grab information about various companies.
There is one more choice of investing in big name companies who have got their own stock trade online. You must invest in companies that are on their commitments in order that your invested sum should not go in drains.
There are lots of websites that are linked to buying or selling of stock to the foreign markets whereas few are linked to foreign & domestic markets. You must decide before with which company that you would like to begin trade in order that you must not mess up with the things. Example, in case you are interested in the domestic market but your have got linked with site that only deals in the foreign market then it may create problem for you. You must always opt for a site of the stock market who are fully safe as your personal and financial information needs to be inserted on a site to start stock trade online.
For more details visit us at penny stocks
Is it a Successful Strategy for swing trading?
This can actually be one of the most successful strategies in the investment world. As with every type of trading, there are stories of people who have enjoyed unbridled success in this practice. Of course, there are also many people out there who wish to sell you their book on how they had such amazing success. You might not have to spend too much on literature to learn how to be a swing trader. You need an understanding of the markets, a good brokerage to let you trade at a reasonable price and the patience to hold onto a stock just long enough to see your profit realized. A little bit of luck never hurt either.
Trying to hit the absolute top of the price will be difficult. That may be something that is best put aside as a strategy. More important is to get close to the top. While the time frame is not as short as day trading, it is still relatively short. If you wait too long your profit might be lost. If you sell at what looks to be close to the high position, you now have made a profit and you have additional funds to put into something that is lower to the trough. You can make a lot of trades like this. Since you are not buying and selling the shares in the same day you will not be subject to the rules that govern pattern day traders.
Knowing when not to swing trade is important. It might sound odd to give up on your trading strategy but it has been shown that this is not such a good practice and works much differently in any kind of extreme market. If the market is particularly bullish or a tough bear market then the rules change and you might be better off finding a different strategy while things calm down a little bit. That can mean either moving into something closer to a buy and hold strategy, day trading or even getting right out and putting the money under the proverbial mattress until the storm is over.
Picking the best stocks to swing trade is also going to determine your success. You are looking at price fluctuations when you are engaging in swing trading so you want most other things to remain as stable as possible as you try to peg where the peaks and valleys of price changes end up. If you are trading in small cap then you might get more volatility than you bargained for. Large cap might be the better way to go. Choose correctly and see if you can get the timing right, you might just turn a nice profit on swing trading.
For more details visit us at penny stocks
Trying to hit the absolute top of the price will be difficult. That may be something that is best put aside as a strategy. More important is to get close to the top. While the time frame is not as short as day trading, it is still relatively short. If you wait too long your profit might be lost. If you sell at what looks to be close to the high position, you now have made a profit and you have additional funds to put into something that is lower to the trough. You can make a lot of trades like this. Since you are not buying and selling the shares in the same day you will not be subject to the rules that govern pattern day traders.
Knowing when not to swing trade is important. It might sound odd to give up on your trading strategy but it has been shown that this is not such a good practice and works much differently in any kind of extreme market. If the market is particularly bullish or a tough bear market then the rules change and you might be better off finding a different strategy while things calm down a little bit. That can mean either moving into something closer to a buy and hold strategy, day trading or even getting right out and putting the money under the proverbial mattress until the storm is over.
Picking the best stocks to swing trade is also going to determine your success. You are looking at price fluctuations when you are engaging in swing trading so you want most other things to remain as stable as possible as you try to peg where the peaks and valleys of price changes end up. If you are trading in small cap then you might get more volatility than you bargained for. Large cap might be the better way to go. Choose correctly and see if you can get the timing right, you might just turn a nice profit on swing trading.
For more details visit us at penny stocks
The Benefits of Online Trading
Think of all the great things that we can do online now. We can shop for cars, furniture or houses. We can send flowers to someone in another country. You can do your banking and you can even find the love of your life. Now, you can also make money by trading stocks, commodities, futures or currency online.
There are so many things that make the online trading experience superior to the old methods of trading. If you are obsessed, and your accounts have you so excited (or worried) that it is keeping you up at night, you can get out of bed, log on in the middle of the night, any time of day or any day of the week and see what is going on. This can also mean that you can make trades in a different time zone, or work in a market that you could not have accessed previously. It also means that you can spend more time trading if you so desire.
What works for the trader also works for the brokerage firms. They can automate so much of what they do and trade in volumes never before possible. Once they have their infrastructure in place, they can have you clicking away at home, earning them commissions on trades. It is a win-win for everyone brought about by technological advances. With the ability to do more volume in trading, the brokers can also offer you your trades at a lower price per trade. This is especially good news for those that are interested in getting into day trading; volume is the key and with a low transaction price you are much better able to turn a profit.
On top of being able to do trades online once you get comfortable, you can also educate yourself online. Most of the software that you will be using will come with useful tutorials, popup boxes to help you out when you get stuck and sometimes even an online helpdesk function to answer your questions. Part of the joy of working online is that when you are having a problem, you can often just flip over to your browser window and find the help you need in seconds. I am forever looking up everything on the internet from how to cook a turkey to finding out what a frost plug is on a car. With the internet we have all become able to bring the world to us in a few clicks, and this includes the world of stocks and other securities.
For more details visit us at penny stocks
There are so many things that make the online trading experience superior to the old methods of trading. If you are obsessed, and your accounts have you so excited (or worried) that it is keeping you up at night, you can get out of bed, log on in the middle of the night, any time of day or any day of the week and see what is going on. This can also mean that you can make trades in a different time zone, or work in a market that you could not have accessed previously. It also means that you can spend more time trading if you so desire.
What works for the trader also works for the brokerage firms. They can automate so much of what they do and trade in volumes never before possible. Once they have their infrastructure in place, they can have you clicking away at home, earning them commissions on trades. It is a win-win for everyone brought about by technological advances. With the ability to do more volume in trading, the brokers can also offer you your trades at a lower price per trade. This is especially good news for those that are interested in getting into day trading; volume is the key and with a low transaction price you are much better able to turn a profit.
On top of being able to do trades online once you get comfortable, you can also educate yourself online. Most of the software that you will be using will come with useful tutorials, popup boxes to help you out when you get stuck and sometimes even an online helpdesk function to answer your questions. Part of the joy of working online is that when you are having a problem, you can often just flip over to your browser window and find the help you need in seconds. I am forever looking up everything on the internet from how to cook a turkey to finding out what a frost plug is on a car. With the internet we have all become able to bring the world to us in a few clicks, and this includes the world of stocks and other securities.
For more details visit us at penny stocks
Friday, June 26, 2009
The World of Online Trading
The world of the internet has opened up so many possibilities for us that were not previously available. One of the areas that is talked about a lot and has become big is the world of online trading. For those of us that are a little older, we can remember when everything was done with paper and rotary telephones. Those days are not so far in the past but they are long gone in some senses.
One of the great things about online trading is that it is available to virtually anyone. If you are of legal age and have some money set aside that you can play with you can get into the game. The software and the web interfaces that are used in online trading these days are almost completely free of bugs and are fairly easy to use, even for those that are not that computer savvy.
There are plenty of advantages that this online revolution has brought about. One great thing about the online trading is that you can do it from anywhere that you can get an internet connection. With a laptop computer and a wifi connection you can sit by the poolside and make trades. Don’t get too close to that pool with the laptop however; modern technology has not brought waterproof computer hardware yet. This works out especially well for those that plan to make a living from online trading, or already are. You don’t have to locate close to a city center and pay a fortune for a postage stamp sized apartment just to get to work. You can live in a place that is much cheaper and where your dollars earned online go that much further.
Online trading also allows for a few things that the old methods didn’t. You can enter and move at your own pace. You don’t have to worry about your broker getting impatient with you when you aren’t making him or her enough money. The software doesn’t really care how often you log on or how long it takes you to click. You can allow yourself the time to become accustomed to the world of online trading nice and slow, and then when you are comfortable you can then pick up the pace and increase the frequency of your trades.
The type of trading that you choose to do online also offers a lot of choice. There are now companies that offer currency trading with their own dedicated software as well as the traditional trading in stocks. It might be a little more complicated to get into, but you can also look into trading in commodities or futures. There are many options, and you can try one at a time and then build on your repertoire.
For more details visit us at penny stocks
One of the great things about online trading is that it is available to virtually anyone. If you are of legal age and have some money set aside that you can play with you can get into the game. The software and the web interfaces that are used in online trading these days are almost completely free of bugs and are fairly easy to use, even for those that are not that computer savvy.
There are plenty of advantages that this online revolution has brought about. One great thing about the online trading is that you can do it from anywhere that you can get an internet connection. With a laptop computer and a wifi connection you can sit by the poolside and make trades. Don’t get too close to that pool with the laptop however; modern technology has not brought waterproof computer hardware yet. This works out especially well for those that plan to make a living from online trading, or already are. You don’t have to locate close to a city center and pay a fortune for a postage stamp sized apartment just to get to work. You can live in a place that is much cheaper and where your dollars earned online go that much further.
Online trading also allows for a few things that the old methods didn’t. You can enter and move at your own pace. You don’t have to worry about your broker getting impatient with you when you aren’t making him or her enough money. The software doesn’t really care how often you log on or how long it takes you to click. You can allow yourself the time to become accustomed to the world of online trading nice and slow, and then when you are comfortable you can then pick up the pace and increase the frequency of your trades.
The type of trading that you choose to do online also offers a lot of choice. There are now companies that offer currency trading with their own dedicated software as well as the traditional trading in stocks. It might be a little more complicated to get into, but you can also look into trading in commodities or futures. There are many options, and you can try one at a time and then build on your repertoire.
For more details visit us at penny stocks
The Different Methods of Day Trading
There are almost as many different methods used by day trader as there are day traders out there. Some are effective, some are not. It would not be true to say that any one method is the right one and will provide big profits for everyone who tries it. Two different traders may use the same method, but applied to different securities they may have drastically different results.
Contrarian and trend following methods are pretty much the exact opposite to one another. Here is a good example of how the same method can have different effects for different investors, or completely opposite methods can both provide profit for the investor. For the contrarian, the belief is that if the price of the stock has previously been rising, then it will tend to fall. If the stock price has been on the rise, it will then be more likely to drop. The trend follower on the other hand believes that the direction of the stock price will continue whichever way it is heading.
Spread trading is the practice of taking advantage of the difference between the buying price and asking price of a stock. It is more commonly referred to as Scalping. It is not completely unrelated to the guy selling tickets outside the concert; he takes advantage of different purchase price and selling price and makes a profit. The day trader does this in a much shorter time frame but the concept is still the same. There is less risk involved in this method, but of course not as much room for large gains.
Range trading can also be effective for some day traders. It follows the assumption that the stocks of a particular company will trade within certain range, with a price ceiling and a price basement. If the price ceiling is reached, the trader will sell, and if the basement is reached, it is time to buy. This is the buy low, sell high notion. It is easier said than done, as this is what all investors would like to do.
Some keep it simple and try to play the news. They watch for information in the media or tips from industry insiders that might give them some insight into whether or not a companies stock is likely to rise or fall in price in the near future. If a company is on the verge of announcing disappointing financial reports, this would be a good time to dump the stock and either lock in the profit that has already been made or to minimize the loss on that particular trade. This would be the most common practice among day traders. Most traders will use more than one strategy in unison or at different times depending on market conditions.
For more details visit us at penny stocks
Contrarian and trend following methods are pretty much the exact opposite to one another. Here is a good example of how the same method can have different effects for different investors, or completely opposite methods can both provide profit for the investor. For the contrarian, the belief is that if the price of the stock has previously been rising, then it will tend to fall. If the stock price has been on the rise, it will then be more likely to drop. The trend follower on the other hand believes that the direction of the stock price will continue whichever way it is heading.
Spread trading is the practice of taking advantage of the difference between the buying price and asking price of a stock. It is more commonly referred to as Scalping. It is not completely unrelated to the guy selling tickets outside the concert; he takes advantage of different purchase price and selling price and makes a profit. The day trader does this in a much shorter time frame but the concept is still the same. There is less risk involved in this method, but of course not as much room for large gains.
Range trading can also be effective for some day traders. It follows the assumption that the stocks of a particular company will trade within certain range, with a price ceiling and a price basement. If the price ceiling is reached, the trader will sell, and if the basement is reached, it is time to buy. This is the buy low, sell high notion. It is easier said than done, as this is what all investors would like to do.
Some keep it simple and try to play the news. They watch for information in the media or tips from industry insiders that might give them some insight into whether or not a companies stock is likely to rise or fall in price in the near future. If a company is on the verge of announcing disappointing financial reports, this would be a good time to dump the stock and either lock in the profit that has already been made or to minimize the loss on that particular trade. This would be the most common practice among day traders. Most traders will use more than one strategy in unison or at different times depending on market conditions.
For more details visit us at penny stocks
How do I get into the Penny Stock Market?
If there is and advice that you take it can be summed up into one statement: do your homework. Start by going on to the internet and looking up websites like Pink Sheets and get yourself acquainted with the market. You will see companies listed there and start to understand the over-the-counter market. There are business journals and publications, as well as blogs and discussion forums that will all give you some insight into this market. Remember that some of the best advice that you can get is the unsolicited advice of someone who has been there. They will be able to tell you their experience and perhaps help you to avoid making mistakes that they made before they happen.
Not everyone who wants to get into the market is the same. Sometimes people are lured to the penny stock market because they are new to the stock market and want to get in and get a feel for it without having to invest a large sum of money. So long as these folks understand the volatility, and that big gains and big losses are possible, then that is fine. There are also those investors that are experieced with trading on the bigger markets, and are looking for a little excitement. They may have done well in the larger companies and feel like they have a little extra to gamble on a smaller player. Some things are the same for everyone who moves into the penny stock market; you must research the company that you want to invest in or you are much more likely to lose what you have invested than you are to realize substantial gains.
If you can find a broker through someone that you know that is the best way. If you don’t know anybody, then go out and find one and make sure to ask them lots of questions. If they don’t have the time to answer, or worse if they don’t know the answer then you need to move on. You should also make sure that they have not been subject to any disciplinary action by the SEC. Do this and you will be more comfortable and safer as you explore the exciting world of penny stocks.
For more details visit us at penny stocks
Not everyone who wants to get into the market is the same. Sometimes people are lured to the penny stock market because they are new to the stock market and want to get in and get a feel for it without having to invest a large sum of money. So long as these folks understand the volatility, and that big gains and big losses are possible, then that is fine. There are also those investors that are experieced with trading on the bigger markets, and are looking for a little excitement. They may have done well in the larger companies and feel like they have a little extra to gamble on a smaller player. Some things are the same for everyone who moves into the penny stock market; you must research the company that you want to invest in or you are much more likely to lose what you have invested than you are to realize substantial gains.
If you can find a broker through someone that you know that is the best way. If you don’t know anybody, then go out and find one and make sure to ask them lots of questions. If they don’t have the time to answer, or worse if they don’t know the answer then you need to move on. You should also make sure that they have not been subject to any disciplinary action by the SEC. Do this and you will be more comfortable and safer as you explore the exciting world of penny stocks.
For more details visit us at penny stocks
What exactly is a Day Trader?
If you were to ask this question, your answer would depend on who is being asked. For most people, this just means someone who purchases any one of a number of different investment vehicles and sells that same investment in the same day. What is being traded can range from options, stocks, futures or even currency. There are more but these make up the majority of day trading activity. If you were to ask this question of the Securities and Exchange Commission, they define a day trader as one who executes a day trade or buys and sells the same investment at least four times in one day. If the trader does this for five business days in a row they are then considered to be a day trader by the SEC and are subject to certain rules. The term for this is called a pattern day trader.
They must carry a minimum balance of $25,000 in their account if it is a margin account. The SEC wants to identify day traders and have different rules apply to them. The penalty is that the day trader may have their account suspended for a 90 day period if they fall below the $25,000 equity mark. If you not a day trader but are in the market and you execute four round trips in a day with less than the minimum $25,000 in your account, you will have your account suspended for the 90 day period or until you have met the minimum account balance. A round trip occurs when you purchase stocks and sell the entire amount in a trade within the same day. The restrictions are fairly stringent and are monitored closely.
Along with the restrictions that are placed on day trading, there are advantages as well. If you have been identified by the SEC as a day trader and are in good standing, that is if you maintain the $25,000 balance in your account, you can buy on margin up to a four to one ratio of the balance that you hold in your account. For example, if you have $40,000 in your account, you can purchase up to $160,000 of securities. This can be an advantage as the buying power increases your ability to move in on an investment that can earn you a profit. If you make a good trade, you stand to make four times what you would if you were only able to use the balance in your account.
For more details visit us at penny stocks
They must carry a minimum balance of $25,000 in their account if it is a margin account. The SEC wants to identify day traders and have different rules apply to them. The penalty is that the day trader may have their account suspended for a 90 day period if they fall below the $25,000 equity mark. If you not a day trader but are in the market and you execute four round trips in a day with less than the minimum $25,000 in your account, you will have your account suspended for the 90 day period or until you have met the minimum account balance. A round trip occurs when you purchase stocks and sell the entire amount in a trade within the same day. The restrictions are fairly stringent and are monitored closely.
Along with the restrictions that are placed on day trading, there are advantages as well. If you have been identified by the SEC as a day trader and are in good standing, that is if you maintain the $25,000 balance in your account, you can buy on margin up to a four to one ratio of the balance that you hold in your account. For example, if you have $40,000 in your account, you can purchase up to $160,000 of securities. This can be an advantage as the buying power increases your ability to move in on an investment that can earn you a profit. If you make a good trade, you stand to make four times what you would if you were only able to use the balance in your account.
For more details visit us at penny stocks
Essentials of Trading Penny Stocks
People who are looking to trade in on penny stock market might be thinking how to trade the penny stocks. Not like standard stocks, all these are not been traded in stock exchange, however in over-the-counter market. You will need to hire broker in order to perform your deals, both buying or selling shares. Basic thing that you need to ensure is having enough money in account that you are making use of to cover both share cost & broker's commission and fee.
Among best methods of trading a penny stocks is looking at an so-called pink-sheet web site. Know your penny stock's ticker sign and which market that stock is positioned in. While dealing with the penny stocks, you must buy and sell shares in very large amount, multiple by thousand, for example, or else you might end up paying additional money to the broker in commission.
Also it is helpful to know following tips if you decide which type of penny stock you have to trade.
First, search about company and see how they are doing. Penny stock companies are very fresh & are still to make some sales in market. Find if they are earning money, and how many products that they are selling on daily basis as well as their plan to make their consumers happy & returning.
Second, look in how company is earning their money or are they selling any advertisements or products or offering different services or do they have any stores or a website?
Third, delve in a trend of their marketplace. Is it on rise and find if products and services that they are selling are famous. Learn about the competitors as well.
Fourth, know how huge is the company debt by looking in their quarterly reports online. Having huge debt charges lots of money and can potentially cause company to close & stock values may sink to zero.
Fifth, focus on the news stories. Good news story regarding company might possibly send stock price to sky.
You would as well have to decide & tell the broker whether penny stock order of yours is limit order or market order. So called market order is order where you are ready to pay whatever your market price is for that shares you like. Alternatively, for limit order, you need to specify limiting price, which must be attained for your order in order to get executed.
For more details visit us at penny stocks
Among best methods of trading a penny stocks is looking at an so-called pink-sheet web site. Know your penny stock's ticker sign and which market that stock is positioned in. While dealing with the penny stocks, you must buy and sell shares in very large amount, multiple by thousand, for example, or else you might end up paying additional money to the broker in commission.
Also it is helpful to know following tips if you decide which type of penny stock you have to trade.
First, search about company and see how they are doing. Penny stock companies are very fresh & are still to make some sales in market. Find if they are earning money, and how many products that they are selling on daily basis as well as their plan to make their consumers happy & returning.
Second, look in how company is earning their money or are they selling any advertisements or products or offering different services or do they have any stores or a website?
Third, delve in a trend of their marketplace. Is it on rise and find if products and services that they are selling are famous. Learn about the competitors as well.
Fourth, know how huge is the company debt by looking in their quarterly reports online. Having huge debt charges lots of money and can potentially cause company to close & stock values may sink to zero.
Fifth, focus on the news stories. Good news story regarding company might possibly send stock price to sky.
You would as well have to decide & tell the broker whether penny stock order of yours is limit order or market order. So called market order is order where you are ready to pay whatever your market price is for that shares you like. Alternatively, for limit order, you need to specify limiting price, which must be attained for your order in order to get executed.
For more details visit us at penny stocks
Thursday, June 25, 2009
Are These the Right Thing For Me?
One thing is true. They are not right for everybody. Because of how they are sold, penny stocks can be hard to locate. The difficulty is that they are not all created equal, and when you do find one that looks like a good investment, you want to know what you are getting into. The problem there is that you might not have the time to do that. Unlike the stocks on the major markets that you can buy any time you want, these shares are more limited and someone else might move in on you. This lack of availability can also mean that there is a risk that when you wish to sell you might not be able to do that so easily. If the stock price starts to fall, sometimes other investors will not want to climb on to a sinking ship and you are left with stock that has depreciated in value so much that it is worth very little or nothing at all.
Penny stocks are very speculative and should not make up the majority of your portfolio. If you have a little extra money that you would like to play around with then by all means look into the penny stocks market. You should be prepared to lose what you have invested, especially if you invest in only one company in the over-the-counter market. Do not gamble the kids’ college fund on these. They are just too volatile. They certainly can make money, and in fact sometimes penny stocks come up really big. There is more potential for a small company to grow and have their stock double in value over and over. Don’t believe what you see in emails, and don’t bet the farm away on these and they might actually be a fun and exciting way to invest your money.
For more details visit us at penny stocks
Penny stocks are very speculative and should not make up the majority of your portfolio. If you have a little extra money that you would like to play around with then by all means look into the penny stocks market. You should be prepared to lose what you have invested, especially if you invest in only one company in the over-the-counter market. Do not gamble the kids’ college fund on these. They are just too volatile. They certainly can make money, and in fact sometimes penny stocks come up really big. There is more potential for a small company to grow and have their stock double in value over and over. Don’t believe what you see in emails, and don’t bet the farm away on these and they might actually be a fun and exciting way to invest your money.
For more details visit us at penny stocks
Are There Drawbacks?
There are some drawbacks to the trading systems. One of the most difficult things can be the complexity. This is sometimes not simple software to use. Developers of trading systems don’t always have their focus on the user-friendly nature of the system. Sometimes in an effort to get the system to do what it is designed to do, the streamlined of the user functions is not there. Particularly if a system is newer and has not had additional versions to work out the bugs and implement improvements you might find that you get a little frustrated trying to iron things out.
Like anything, there are scams out there. Lots of systems will promise things that are simply not believable. That is because you should not believe them. If you have seen the late-night infomercials with the guy who spends an hour a day trading and doesn’t even have to click then goes outside to play with the kids in the huge yard and poses beside the Mercedes then you probably know what I am talking about. If this system worked so well, wouldn’t the people that made it simply use it and play with the kids instead of making infomercials to sell it to you for $49.99?
Also beware of the pitfalls of slippage and commissions. Slippage happens on the forex trading systems, when the time lag between when you place your order and when the currency is purchased means that there is a difference between the two prices. For the securities market the commission has to be factored into the equation. If the commissions you pay on your trades catch up to the amount that you are making then you are working for free.
Some of them just plain don’t work. You might get something that looks really good on the screen but has been designed by some high school kid in his garage or basement and doesn’t do what it is supposed to do. If you want to evaluate which ones not to go with, anything that does not offer a free trial period would be a good start. Try it for a month and see how you do. If you do well then you can think about moving forward. Here is something to consider though; half of people will do better in real time and half of people will do worse. It is just the law of averages so be prepared that your success in the trial may not be matched when you get into the market.
For more details visit us at penny stocks
Like anything, there are scams out there. Lots of systems will promise things that are simply not believable. That is because you should not believe them. If you have seen the late-night infomercials with the guy who spends an hour a day trading and doesn’t even have to click then goes outside to play with the kids in the huge yard and poses beside the Mercedes then you probably know what I am talking about. If this system worked so well, wouldn’t the people that made it simply use it and play with the kids instead of making infomercials to sell it to you for $49.99?
Also beware of the pitfalls of slippage and commissions. Slippage happens on the forex trading systems, when the time lag between when you place your order and when the currency is purchased means that there is a difference between the two prices. For the securities market the commission has to be factored into the equation. If the commissions you pay on your trades catch up to the amount that you are making then you are working for free.
Some of them just plain don’t work. You might get something that looks really good on the screen but has been designed by some high school kid in his garage or basement and doesn’t do what it is supposed to do. If you want to evaluate which ones not to go with, anything that does not offer a free trial period would be a good start. Try it for a month and see how you do. If you do well then you can think about moving forward. Here is something to consider though; half of people will do better in real time and half of people will do worse. It is just the law of averages so be prepared that your success in the trial may not be matched when you get into the market.
For more details visit us at penny stocks
Are There Any Drawbacks to Online Trading?
There are things that can make online trading dangerous, but the dangers can be avoided with some care. One thing that is different is that you are not actually talking with a live person every time you are making a trade. This means that you might be missing out on some of the advice that you would normally be getting from your broker. You could end up buying the shares of a shipping line whose flagship vessel just went to the bottom of the ocean. While that is not likely, you can get the point. This is not a big deal for the seasoned investors, but if you are new to the game it might be nice to get some advice when you set out to buy or sell stocks.
Sometimes technology is not without its frustrations. When you are dealing with a broker personally you simply instruct them on what to do and they do it. How they do it is not your problem, that is their job and they will figure it out. There are times when you get everything set up and installed as it should be and it just plain doesn’t work. Computers aren’t like bicycles. You often can’t tell what is wrong and you need to get someone under the age of 18 to come in and fix it for you. That can be frustrating. Computers crash, power goes out and your kids can download a virus. Beware that there can be barriers to trading online to go along with the conveniences.
While you have the convenience of using your computer to trade, keep in mind that if you are using a desktop, you probably have the software installed on it to do your trades. If you plan to go away to the cottage for the weekend or on vacation, that means no trades unless you pick up the phone and instruct your broker the old fashioned way. It might be a good idea to try this at least once before you go away just to make sure that you can do it and there won’t be any barriers to making a trade. You can probably go online somewhere else to get information but to execute the trade you will need to know how to contact your broker.
A laptop is a better way to go if you have not already bought a system to use for your online trading. Buy one that is powerful as you don’t want to be back in the market in a year or two because the hardware is dated. Think about getting a voice-over-internet-protocol phone number. You will pay much less for phone calls from anywhere in the world and you can use your laptop to do it. Get a headset that is made for just that purpose and you have a traveling office that will save you money.
You will probably agree that the benefits of online trading far outweigh the drawbacks, just take the time to get set up correctly and educate yourself and you will do just fine.
For more details visit us at penny stocks
Sometimes technology is not without its frustrations. When you are dealing with a broker personally you simply instruct them on what to do and they do it. How they do it is not your problem, that is their job and they will figure it out. There are times when you get everything set up and installed as it should be and it just plain doesn’t work. Computers aren’t like bicycles. You often can’t tell what is wrong and you need to get someone under the age of 18 to come in and fix it for you. That can be frustrating. Computers crash, power goes out and your kids can download a virus. Beware that there can be barriers to trading online to go along with the conveniences.
While you have the convenience of using your computer to trade, keep in mind that if you are using a desktop, you probably have the software installed on it to do your trades. If you plan to go away to the cottage for the weekend or on vacation, that means no trades unless you pick up the phone and instruct your broker the old fashioned way. It might be a good idea to try this at least once before you go away just to make sure that you can do it and there won’t be any barriers to making a trade. You can probably go online somewhere else to get information but to execute the trade you will need to know how to contact your broker.
A laptop is a better way to go if you have not already bought a system to use for your online trading. Buy one that is powerful as you don’t want to be back in the market in a year or two because the hardware is dated. Think about getting a voice-over-internet-protocol phone number. You will pay much less for phone calls from anywhere in the world and you can use your laptop to do it. Get a headset that is made for just that purpose and you have a traveling office that will save you money.
You will probably agree that the benefits of online trading far outweigh the drawbacks, just take the time to get set up correctly and educate yourself and you will do just fine.
For more details visit us at penny stocks
Penny Stocks – Truth and Fiction
Plenty of information exists about penny stocks, and it pays to know what is real and what is not. Penny stocks are somewhat of an unknown entity, many people know the name but not everyone knows how they work or whether or not they are a wise investment. They can be for the right investor.
First of all, whatever you have received in your email inbox can probably be called the fiction part. If someone is promising big returns on any stock, of any variety then they are telling you that they can see into the future and that just isn’t the case. If they were actually able to tell what stocks were going to rise in price so much do you not think that they would be buying them all themselves? You would think that they were also so rich that they wouldn’t need to send emails to people they don’t know asking them to buy. They can sure sound tempting, but stay away from that kind of thing. The stocks behind these communications often don’t exist at all or are highly inflated. If you are wondering how a penny stock can be inflated, just think of it this way; if it is worth 2 cents and it is sold for 12 cents, it still seems like a bargain right? At six times its value it is not that much of a bargain after all.
Penny stocks might seem to be a little suspect because they are not traded on major stock exchanges. Don’t hold this against them. It is because they do not qualify to be traded on a major exchange. That doesn’t mean that they are traded in shady back rooms or anything. They are traded in what is called the over-the-counter market. This is simply the marketplace for those shares that are not traded in the volumes that the larger corporations see. They still need a broker to be bought and sold. The broker is required to provide a written report of what they have purchased for you. It should also give the most current available stock price and it has to come at least once a month.
They are risky. There is no disputing that. If anyone ever tells you that something is a sure thing, or it is a completely safe bet they are not being honest with you. Either that or they really don’t know what they are talking about or you should stay away whatever the case may be. These are speculative stocks and should take up an appropriate portion of your investment portfolio.
For more details visit us at penny stocks
First of all, whatever you have received in your email inbox can probably be called the fiction part. If someone is promising big returns on any stock, of any variety then they are telling you that they can see into the future and that just isn’t the case. If they were actually able to tell what stocks were going to rise in price so much do you not think that they would be buying them all themselves? You would think that they were also so rich that they wouldn’t need to send emails to people they don’t know asking them to buy. They can sure sound tempting, but stay away from that kind of thing. The stocks behind these communications often don’t exist at all or are highly inflated. If you are wondering how a penny stock can be inflated, just think of it this way; if it is worth 2 cents and it is sold for 12 cents, it still seems like a bargain right? At six times its value it is not that much of a bargain after all.
Penny stocks might seem to be a little suspect because they are not traded on major stock exchanges. Don’t hold this against them. It is because they do not qualify to be traded on a major exchange. That doesn’t mean that they are traded in shady back rooms or anything. They are traded in what is called the over-the-counter market. This is simply the marketplace for those shares that are not traded in the volumes that the larger corporations see. They still need a broker to be bought and sold. The broker is required to provide a written report of what they have purchased for you. It should also give the most current available stock price and it has to come at least once a month.
They are risky. There is no disputing that. If anyone ever tells you that something is a sure thing, or it is a completely safe bet they are not being honest with you. Either that or they really don’t know what they are talking about or you should stay away whatever the case may be. These are speculative stocks and should take up an appropriate portion of your investment portfolio.
For more details visit us at penny stocks
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