Archive for September, 2010

Day Trading Penny Stocks

September 30th, 2010

Day trading penny stock picks are the best stock deals that are available for day trading. Awareness regarding day trading stock picks allows a day trader to gain maximum returns from the market. The day trader has to capitalize on intra-day price volatility in the most active stocks to reap a regular profit from the stock market.

The main advantage of day trading is that one’s stock positions are not held beyond the current trading day. Hence, the chances of potential losses that may arise due to holding a stock overnight are minimized. Increased leverage and profit in any market condition are the other key advantages of day trading. Since trading period is limited, day trading stock picks become a crucial helping factor.

However, day trading may sometimes lead to immediate financial losses. Lower liquidity, higher volatility, changing prices, and unlinked markets are some of the drawbacks of day trading. It is, therefore, necessary for a day trader to have adequate experience and thorough knowledge regarding the securities market and trading techniques. This also necessitates a detailed analysis of the stock picks list and applying one’s discretion when selecting the stock.

Day trading stock picks are chosen based on a set of strategies or methodologies, of which the most important are technical analysis, trend analysis, relative strength ranking, fractals and volumes, chart formations, and algorithms. One can look out for reliable newsletters which provide expert advice related to the most active stocks and indices. Further, there are myriad Web sites that provide tips and day trading picks. Interactive chat rooms provide first-hand information on the day trading stock picks. Many good books are available which can educate the day trader on day trading stock picks, as well, though this information is not as up-to-date as Web sites and newsletters, in general.

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Our SD pick flying!

September 29th, 2010

This was our stock pick at 4.00 and now its flying at 5.45 we think SD will easily hit 6.00 and be a 50% play for us.

Penny Stock Lists

September 29th, 2010

This is just a quick update on what kind of penny stock lists to create. You wouldn’t believe all the e-mails I receive with questions about watchlists and news lists. Why or why penny stock companies make or don’t make my lists.

As you trade penny stocks keep a list of penny stocks that you will not buy no matter if the volume is strong or the news is great. I have a rather extensive list myself. This list consist only of stocks who tend to reverse split and then change their symbol. These are usually the same ones being profiled or pumped but not always.

You can have penny stock lists based on charts and break them into sections, strong runners, bottom bouncers etc….. Try to move stocks in and out daily as the runs or bounces fail if you can’t double check the charts before entering.

I also keep a penny stock news list that I scrap daily. If I like the news I check the chart, if the chart is ok its on my watch list.

While trading I watch for volume and positive movement on any of these stocks. Knowing that I already like the charting set up, I can enter quickly and begin re-evaluating the chart for exits.

Hope this helps those who have trouble creating penny stock lists, if there are more questions just e-mail me or add a comment at the bottom of the article. I’ll try and answer them or create a new blog if I find everyones interest into a specific area.

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Why Buy Penny Stocks

September 27th, 2010

A lot of people when starting out on investment tend to go in for cheaper stocks as their first investment. They do this because they are deemed to have higher returns when things go according to plan. This article will show you what to consider when engaging on this.

Penny stocks get their name from the fact that they are cheap. They cost as much as pennies with some even below this. Earnings on them are however limited because if you want significant earnings you must buy a lot of them.

It’s value only add up to a few quantity of a different stock. For example 10,000 penny stock of 0.1 prices will equal 100 stocks of a $10 value. When there are profits it will be minimal for penny stocks so it will only be wise to get more.

Most people prefer it because they move up at quicker intervals. A $1 will increase to $2 at a much faster rate than a $10 stock will.

It is not always the case however that penny stocks will gain you more earnings. There are times when the price will stay the same for a longer period. Most people lose on it however as they are mostly traded by amateurs.

People must not readily and easily rush for penny stocks because they are very predictable. It will be easier trying to understand the way the market moves. Prices are also usually stagnant and increase when there are breakthroughs in their business.

In cases where the company folds up the stocks become useless. These stocks are also thinly traded on a daily basis so it is difficult to liquidate huge stock levels at a particular time when you want. In cases where you want to avoid loses you might not find people to take the stock off your hands.

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SD Buy up 25% and ready for 25% more!

September 25th, 2010

Our buy SD stock pick was off of 4.00 with a goal of 6.00.

A couple days after the stock pick it began to move up and went over 5.00 for a 25% gain. We bounced off that 5.00 resistance for a couple of days rested at 4.5 (closest support) and we’re moving up again, 5.00 is still resistance. This had a strong close on Friday we’re expecting a move through the 5.00 area and when that happens we should run up to 6.00 giving us a 50% gainer.

Good Luck and congrats to those of you who banked 25% and re-entered on the rest.

Learn Penny Stocks

September 24th, 2010

After you have spent considerable time to learn penny stocks, you more than likely have picked up a lot of information about the stock market in general. When you choose to invest in the stock market, whether it is penny stock or blue chip, you are taking a reputed risk. As for penny stocks, even with their volatile nature, the capacity is there to make a small fortune.

What should one look for in a company before investing? Any stock company that wishes to list on the stock exchange does not have to follow all the rules and regulations of a blue chip stock. A stock company can be here one day and gone the next. What consideration should be given a company that may be beckoning you to invest?

The company should be producing a product or commodity that shows it to be something of wide use in today’s market. Is it national or global? Scrutinize this company from the inside out and know it as well as you know yourself. In doing so, you just may be protecting and enhancing your investment toward a substantial payoff.

To learn these types of stocks a future investor needs to know what things that are favorable to this type of investment. Penny stocks become attractive due to the potential they have for a growth rate that exceeds some of your blue chip stocks like Microsoft and Google. If the investment is made early enough and the company stock should skyrocket a significant amount of money can be made.

This type of stock can be cheaply purchased. If you desire, and it is often advised, you are able to split up your investment and buy stock in as many different companies as you wish. This helps to reduce risk of loss due to the act that if one company fails, another may gain, cutting your loss.

To learn penny stocks and all of their attributes is a way of protecting your investment. The more knowledge you have, the better able you will be to make decisions in where to put your money.

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Penny Stocks can be risky business.

September 23rd, 2010

The temptation of high gain using penny stocks is something that many people have banked on for years. Unless you wish to learn penny stocks, and learn them well, this form of investing is not for you. The world of penny stocks is perilous and can be fraught with danger for the novice, but the skilled investor may welcome the challenge and reap the rewards.

Many stock brokers can be found on line which some feel is the first drawback of investing. Most of us would prefer to sit across from a broker and discuss the ins and outs of this type of trading. Sadly, there are few brokers that will take on penny trading due to the risk involved. This is not to say that all online brokers are bad, but it makes it tougher to sort out the good from the bad.

While major markets such as the NYSE are protected by the many required aspects of the Securities Exchange Commission, there is nothing in place to guard the stock investor. The investor in this stock has to learn this types of stocks for themselves and set their own rules and regulations under which they will invest.

Occasionally penny stocks are abused for the purpose of manipulating the market. This is an illegal action and many companies are presently under review for these kinds of actions. They will promise you anything to get you to invest, and then they will literally take your money and run.

On the flip side of the coin, one is to be reminded that the Ford Motor Company was once a penny stock. Sprint was another, along with Sun Microsystems. So to say that all these companies fail is an erroneous statement. The challenge is to pick the ones that will succeed as well as the aforementioned companies.

The best advice to the penny investor is to learn these types of stocks and not allow yourself to be dissuaded by web sites that issue false reports and make misleading statements in the hope of luring you to a company that they wish to use as bait to manipulate prices.

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Trading Penny Stocks- How to play the stock market

September 21st, 2010

In the stock market, money is made daily by people who know how to play the stock market. These are people just like you and I. The truth is that there are various ways to trade. For those people who do not have 6 figure brokerage accounts, penny stock is the best way. Not only that it is good for beginners,but it is also a great leverage investment.

Penny stocks are stocks that do not cost a lot of money because they are stocks from small or medium. Actually these stocks can get you started in the stock market if you really want to know how to play the stock market. Honestly, it would be very difficult for you to find another trading vehicle that offers this kind of leverage as penny stocks do.

When it comes to this business, the growth potential could be really huge because it really doesn’t take that much to move the price. Some have gone up as much as 500% in a single day. Let’s just say, for an example, if a penny stock that cost 50 cent per share goes up 100 percent that would mean that the price will move from 50 cents to a dollar par share. You can really start to see how such small investment can provide big profits

For sure, they are unquestionably enticing when you consider how inexpensive they are. But before you start trading on penny stocks, you definitely need to gather some information on them. This is because; you can’t just go around and buy them on impulse. You have to make inquiries concerning each one of them and make sure you weigh the advantages and disadvantages of each stock you are interested in. This is essential since you are investing in corporations that are not well established

Furthermore, it is never advisable to trade with money that you can not afford to lose. This seems like common sense, but you’d be shocked to know that people are making this mistake daily. If you disregard this rule, then know that you are setting yourself up for great surprises

If you really want to know how to play the stock market by investing in the penny stock, there is this new invention that has found its way into the stock market. Thousands of traders are now depending on this tool to make money in the stock market. This tool is called stock market robot.

It is a machine that was programmed with incredible technical information about the stock market. It analyzes this information and tells you when to buy or sell. To me, it seems like this technology and penny stocks were made for each other. This is because Penny stocks can either quickly go up in value or can decline so quickly that you lose everything you have invested.

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Why the Best Penny Stocks Initiate Buy Back Programs

September 20th, 2010

Why the Best Penny Stocks Initiate Buy Back Programs

The most direct act that a company can do to increase the price of its stock is to buy up its own shares in the open market. The best penny stock companies often launch buy back programs when they seek to diminish the number of shares outstanding (the number of shares available in the market). The share bought in the open market can be retired. Retired shares are no longer counted as outstanding. Investors will value the remaining shares at a higher price.

As an example: ABC Company has a $5 million market cap that has 10 million shares outstanding. This would give ABC a price per share of.50. With a corporate buy back of shares the outstanding number of shares would be reduced. Supposing ABC retired 2 million shares… that would leave 7 million shares outstanding. If the market cap remains at $5 million, it has no reason to go down since investors still have the same valuation for the company. Then each share would now be worth.71, which is.21 more than they were worth prior to the buy back.

There are a few reasons for instituting a buy back. The first reason is if the company wants to shore up confidence in the company. Company management wants to show investors that they have confidence in their business plan and stock… and continue to believe it is a solid long-term investment. It one thing for company insiders to announce news such as expected new earnings… and it is another thing for them to put their money where their mouth is.

The second reason a company may institute a buy back is to push up the price of a stock. The company knows that investors will translate the buying of a stock as a positive sign on the value of the stock. However, this can be done at investor’s expense. A company stock with no trading volume might start buying up the stock to push the price of its own stock up. However, this kind of activity is monitored by regulators, but investors still need to be careful.

In conclusion, make sure you conduct complete due diligence when you see a company initiate a buy back of its own stock. However, this can be a very good sign for a small company on the move.

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Beginners Trading Penny Stocks

September 17th, 2010

One of the easiest things to learn is investing in stocks for beginners for many reasons. For one thing, you have many resources available from books and journals to online sites and television shows. For another thing, once you understand the basic concepts of stock trades and investments, you are well on your way to learning the advanced ideas.

Let’s start with the stock market. Basically, it is a place where the shares of stocks of publicly-traded companies are bought and sold by traders and investors. The stock brokers act as the middlemen in both sides of the transaction mainly to keep order in what can be a chaotic marketplace. Keep in mind, however, that the stock market can either have a physical location like the NYSE Euronext or just an online site like the NASDAQ.

Nowadays, manuals on investing in stocks for beginners emphasize on the fact that small-time investors can compete with their big-time counterparts. This is largely due to the way the Internet has revolutionized how we do business. The important thing with stock market investments even when you are not in the elite club is to know exactly what you are doing and why you are doing it.

Moving on to success as a stock investor, it cannot be overemphasized that it is not a get-rich quick scheme. You have to pour serious thought, plenty of time and admirable discipline in making consistent profits both in the short term and long term periods. If you do not have the patience, persistence and passion for profits, then we suggest not becoming a stock investor.

But if you still want to proceed, read the following tips for investing in stocks for beginners:

1. The first order of the day would be formulating an entry and exit strategy, which reflects your investment goals especially in terms of how much profit you desire and how much loss you can tolerate.

2. Always do your research before investing in any company. You have to look at its financial statements, quality of management and strength of business plan, all of which will provide clues as to the direction it will be taking. Keep in mind that, as an investor, you are now an owner of the company and, hence, it is to your best interest that the company is as strong as can be.

3. Make it as simple as possible. Sure, the OTCBB stock market can be daunting to understand at first but once you do, it can usually be whittled down to a few simple things. Often, too, you have to tune out the noise.

As a beginner investor, it pays to acquire as much knowledge, experience and wisdom as possible where the stock market is concerned. Just keeping chipping away at the layers of knowledge and you will eventually become as successful as the big-time players.