Archive for April, 2010

Trading Stocks from Hilton Head Island.

April 26th, 2010

Hello everyone!

Just returned from a vacation in S.C at Hilton Head, it was amazing. The weather was fantastic, the water warm and full of dolphins. The restaurants were excellent. It was very relaxing I am not happy to be back and I’m still exhausted.

Trading stocks while in Hilton Head? Are you nuts. The family would’ve killed me. I just wanted to let everyone know I was still alive and functioning, while I catch up on the market you may want to check out these points of interest.

Our Penny stock forum is full of lurkers watching for the latest stock picks. We don’t run a hype board so its quieter than all of your pump forums. You know the ones the new penny traders tend to flock to.

This is a must read for those of you who buy penny stocks. If you haven’t visited our hope page check out everything you need to known about penny stocks.

If your looking for how to trade stocks with dividends on their ex-dividend date

Here are the stock market holidays and stock market hours.

Hope you find these links useful in your trading life. Some I check daily. I’ll have something new for everyone soon.

Dow 11,100 Time For Pullback!

April 14th, 2010

Settle in and prepare yourselves for a pullback here. Everything technical is suggesting the stock market will pull back. We are at a strong resistance point here. I just want everyone to be prepared, the news is screaming 11,000 and more to come. Some are also suggesting this means the recession is over. I personally think this is insanity.

Does anyone know why the stock market went up? Yes, it was an oversold bounce from March 09. Were there more reasons you ask? Maybe, but none that I’ve seen. This rally has come on low volume while the market was at a bottom and way oversold. During this time, the worlds economy was also going very poorly. With everything looking bad the good old U.S.A is as stable an investment that you can find especially when the technical analysis screams buy.

Unemployment bad, business tax situation bad, new hirings bad, gas and oil bad, debt bad, housing bad, and the stock market is running why? In my opinion its because of Technical Analysis and timing. During the election race and the end of the Bush cycle the market besides being oversold went down more than it should and there is some correcting going on. In order for the market to hold 11,000 and keep on running it will require some good things to happen and I do not see that happening at the moment.

According to the numbers there are a lot of day traders in the market but major investors are bearish on the current situation. Investment advisers begin to turn bearish at these types of major resistance levels. The safest bet for them here is to watch their investments but invest nothing new. This creates a tired look in the technical analysis, a kind of rollover point.

Don’t run out and sell your stocks today then start shorting ,but set up your portfolio for sells to maximize current gains. Figure out what you will sell and where when my call is proven to be correct. Never jump the gun on this type of call, You don’t want to sell to early or begin shorting too early. This can cost you a lot of new losses and missed gains. Today If I was trading the Dow, I would sell it and wait for a pullback, if I still wanted to own it. Then when it began to head downward I would short it to make some gains on the way to my pullback point. I will trade the stocks I own in a similar fashion. Some are ready to sell now and others I can give a little room to wait

This is my advice. I am not your professional trading adviser but I do understand the market. I am not a professional and any mistakes made are yours I can’t be liable. Keep it simple and take my advice to look at your portfolio here, either alone or with your trusted financial assistant. Play it right and you can capitalize on your gains and the downturn in the market, not like the last time it crashed when you just held on for dear life.

How to Buy Penny Stocks

April 6th, 2010

Penny stocks, microcap stock, or nano stock are the three main terms used for stocks trading under 5$. Most traders will use these terms as interchangeable. There is no set rule to determine a penny stock by specific definition. A broader definition refers to the companies outstanding shares and their market capitilization. This is a more accurate way of finding a penny stock than relying on the 5$ rule.

One way to find the market cap of a company is to multiply the price of the stock by the amount of outstanding shares. This will help you find the monetary value of the shares at any time. Penny stocks may be inaccurate in their share count, when calculating the market cap you may want to speak with the companies transfer agent and ensure you have the amount of outstanding shares correct. Penny stocks are traded on the OTCBB market by market makers. Commisions are made and there are tricks the market makers use to entice a trade. Here is a list of market maker (mm) signals.

Brokers often receive a commision for facilitating the sale of penny stocks. They can also make money on the price spread and will be able to buy and sell shares at the best times to make the most money for themselves. This spread is the difference between the bid and the ask. Penny stock spreads can be very slim or they can be 25 to 35% difference in price. Furthermore, there is what is known as the inside and outside bids. If someone tries to buy or sell a lot of shares the price will change instantly. Penny stocks also may come with a mark up in pricing due to the brokerage holding the penny stock for a period of time therefore holding it through risk.

Trading penny stocks is a dangerous process that can quickly remove the money from your brokerage account. Even with these problems and scams, many companies continue to trade penny stocks for the chance at an enormous profit and a chance to be in on the bottom floor of a ground breaking company or product. The best way to find a company is to research on your own, use reliable sites and brokers to help you find companies but be careful, there is a lot of money to be made scamming the penny stock traders. Always do your own due diligence.