Monthly Archives: October 2010

Penny Stock Trading

Tips to Boom Penny Stocks Day Trading

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Tips to Boom Penny Stocks Day Trading

Penny stocks are really cheap stocks issued by start-up companies or businesses facing bankruptcy. They are traded on the Over-the-Counter Bulletin Board (OTCBB) and the Pink Sheets. Only a small amount of penny stocks are listed on the NYSE, NASDAQ and AMEX. The stocks traded on them are speculative and high-risk stocks, for the reason that very few people invest on them. They trade uncommonly. Besides that it is very difficult to sell them after investing in them. The stocks that are traded on major exchange have very few risks as it enlists the stocks of good companies that have sound financial status. On the other hand, speculative securities are mainly listed on Pink Sheets. The companies who have financial deficiencies trade on Pink Sheets. To trade on pink sheets, they don’t have to prove financial status.  So the financial statements about a company given there can be false. In a day trading penny stocks, stocks are bought and sold during the same day.

The following important points can reduce the chances of losses and make you great profit.

Don’t pick penny stocks that you learn about from unwanted emails or that are sold by offshore brokers. Cheat artists often use these means to sell penny stocks to novice day traders.

Research any company you are considering investing in. Read articles in business newspapers and do an Internet search on the company owners.

When you begin your trading day, it’s essential that you try your best to identify specific barriers that might arise throughout the trading day keep an eye on important market changing events, particularly news events associated to the market(s) you trade. Observe the exact time during the day so you can be prepared for increased volume in the markets.

There is also software available for trading penny stocks. You will be able to buy and sell penny stocks online for a fee and, in addition, receive intraday and historical charts that you can customize for your own use.

Observe the Pre-Market and/or reviewing what has occurred to price since the open of the market (We will go over the benefits of 24-hour charts VS daily charts in an upcoming article). When you do this it makes it very easy to:  Identify what type of market it is today; trending (higher highs, lower lows) or sideways (double-tops and bottoms etc.). This can help tremendously when you’re choosing which type of set-ups you’re going to use throughout the trading day.

Take the help of an online broker who has knowledge in penny stocks. Since trading in penny stocks is speculative, these brokers are required to get written confirmation from the client concerning the business.

For more details visit us at Penny Stocks

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Stock Trading

Stock Assault 2.0 Review – Stock Market Software Reviews

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Stock Assault 2.0 Review – Stock Market Software Reviews

The Stock Assault 2.0 is an automated stock picking software. The software promises immense returns for new traders. But what exactly is Stock Assault 2.0?

The Stock Assault 2.0 is a software program that scans and analyzes thousands of stocks instantly and automatically. The software analyzes stocks by analyzing stock charts and live data.

By doing so the software generates a reliable prediction of price changes in the future.

Click Here to Download the Stock Assault 2.0 now

The Stock Assault 2.0 is easy to use and has a very user-friendly interface. It sits in the background on your computer and downloads stock information using its own real-time data stream. When it has enough information in its database, it will give you about 5-10 stock picks a day. You can choose to trade any of these stocks and the software will tell you exactly when to sell them. It usually tells you to sell them 2-5 days later.

The Stock Assault 2.0 gives you is professional Artificial Intelligence Stock Market Software. Artificial intelligence has been used for decades already. As of the moment, artificial intelligence is also taking over other human activities like stock trading. The Stock Assault 2.0 actually thinks like a human brain to give you different results. You can use two computers running copies of Stock Assault 2.0 and the software will give you a different pick.

Click Here to Download the Stock Assault 2.0 now

For new traders who dream of trading stock like the pros on a daily basis, the software can be a good start. Unless you have a lot of time to go through a lot of data and information about a company, making a good trade can end up becoming nothing more than guess work. That is the reason why stock trading software like the Stock Assault 2.0 was developed.

The software took more than five years and three million dollars to develop. This artificial intelligence software has been developed by an elite team of 25 day traders. There are people who doubt whether the software is a scam or not. As of now, the software is working fine and giving traders a good amount of investment returns.

If you are serious about stock trading, automated stock trading software like the Stock Assault 2.0 is only worth a few dollars. The company even has a 60 day money back guarantee so that you can always get back your money if you are not satisfied. All traders, old and new, may experience the software differently. Unless you test the software, you’ll never know whether Stock Assault 2.0 works for you or not.

Click Here to Download the Stock Assault 2.0 now

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Stock Trading

Basic Knowledge on Trading Singapore Stocks That Every Investor Should Know

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Basic Knowledge on Trading Singapore Stocks That Every Investor Should Know

Get Started With Trading Stocks?

If you know nothing about stock exchange, here is a quick start kit for you to acquire the basic knowledge that all beginners should comprehend before trading on any stock market.

Indexes

First of all, you need to know the various indexes. There are Dow Jones Industrial Average which is a price-weighted average of 30 significant stocks traded on the New York Exchange and the Nasdaq. America is doubtlessly considered one of the most influential countries that can cause great impact on the overall world economy; hence, the US markets’ performance is largely watched by all investors and traders worldwide.

Next, we have the 3 major European Markets which are France (CAC), Germany (DAX) and London (FTSE).

Finally, we have the Asian major markets which are Hong Kong (Hang Seng), Shanghai (SSE), India (SENSEX), Korea (KRX) and Japan (Nikkei).

Basic Terms That Investors Should Know

Bull Market refers to stock market is undergoing an upward movement and prices are going UP. Bear Market refers to stock market is undergoing a downward movement and prices are going DOWN. Long refers to the action of buying a stock. Short refers to the action of selling a stock naked or to sell out existing shares’ holdings. Beta stocks refer to stocks that trade in a wide range and movement can be erratic. Volatile refers to stock prices changes up and down in an random movement which can be difficult to read or predict. Liquidity refers to the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price Bid prices refers to the best buying prices that investors are willing to pay for a particular stock Offer prices refer to the best selling prices that investors are willing to sell for a particular stock. Spreads refers to the smallest price change that a given stock can make.

[These are the general terms for you to kick start with. We will  add on more financial terms from time to time.]

In this article, we are focusing on Singapore stock market.

How To Get Started With Singapore Stock Market?

You have to know what are (1) Blue Chips, (2) Mid Caps, (3) Small Caps and (4) China-related stocks.

Blue chips are nationally recognized, well-established and financially sound companies. They are known to weather downturns and operate profitably even in face of adverse economic conditions. Their strong business structure and well diversification help to contribute to their long record of stable and reliable growth. Some classic examples include Singtel, UOB, DBS and OCBC. Most blue chips are also one of the constituents of the STI index. Mid Caps are companies with a market capitalization between and billion. Some examples are Yanlord, IndoAgriculture and Ascendas Reit. Small Caps are stocks with a relatively small market capitalization. Some examples are ECS and Ban Joo. China-related stocks refer to companies that operate most of their business in the Mainland, China.

 

Next, you need to know the constituents that made up the STI index. Constituents may vary with time when there are new stocks included or existing stocks excluded. This is to give the best accuracy of the overall Singapore Stock Market. Currently, we have 30 stocks that made up the STI Index.

STRAITS TIMES INDEX CONSTITUENTS (30 CONSTITUENTS)

CAPITALAND CAPITAMALL TRUST CITY DEVELOPMENTS COMFORTDELGRO CORPORATION COSCO CORPORATION (S) DBS GROUP HOLDINGS FRASER AND NEAVE GENTING INT’L PLC GOLDEN AGRI-RESOURCES HONGKONG LAND HOLDINGS JARDINE CYCLE & CARRIAGE JARDINE MATHESON HOLDINGS JARDINE STRATEGIC HOLDINGS KEPPEL CORPORATION NEPTUNE ORIENT LINES NOBLE GROUP OLAM INTERNATIONAL OVERSEA-CHINESE BANKING CORP SEMBCORP INDUSTRIES SEMBCORP MARINE SIA ENGINEERING CO SINGAPORE AIRLINES SINGAPORE EXCHANGE SINGAPORE PRESS HOLDINGS SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TELECOMMUNICATIONS SMRT CORPORATION STARHUB UNITED OVERSEAS BANK WILMAR INTERNATIONAL

 

Different stocks are assigned with different percentage weight, meaning that these 30 stocks movement will directly affect the STI index performance. Certainly, the bigger the percentage weight, the greater the impact it has on the index. To know the percentage weights of individual stock and the price range of stocks, please refer to our blog. 

In addition, there are many useful links that investors should frequent them to check for updates. You may check for any changes on the % weighting from www.ftse.com on a monthly basis as changes do not happen often but once in a long time.

Next, www.sgx.com is a good website to obtain latest updates on company’s announcements.

Company’s Dividends Payout

There are 2 terms that investors have to know about dividends. One is cum-dividend which has a short form of “CD”. The other one is Ex-dividend which has a short form of “XD”.

Cum-dividend means if you purchase this stock during the period when it is showing “CD”, you are entitled to the dividend payout that the company had declared.

Ex-dividend means if you purchase this stock during the period when it is showing “XD”, you are not entitled to the dividend payout that the company had declared.

To facilitate better understanding, we have drafted 3 different kinds of situations to illustrate on dividend payout. Please note that the mentioned examples herein are all hypothetical.

Stock A has just announced good earnings and decided to declare 5cents dividends on Monday. Stock A will start to trade “CD” on Tuesday and going Ex-dividend on Friday.

Case 1: You did a fundamental analysis and found that Stock A is a good investment. So you proceed to buy on Tuesday. In this case, you are entitled to the dividend payout.

Case 2: You are an active stock trader and concluded that the chart pattern of Stock A has fulfilled your criteria of a good buy. You buy on Tuesday, however, the share does not perform to your expectation and you went on to sell your shares on Thursday. In this case, you are NOT entitled to the dividend payout.

Case 3: You are an active stock trader and concluded that the chart pattern of Stock A has fulfilled your criteria of a good buy. You buy on Tuesday and after holding for several days, the stock underperformed but it has yet to reach your stop loss price. Eventually you decided to sell your stocks on Friday. In this case, you are entitled to the dividend payout.

In short, if you buy a stock on “CD” and sell on “XD”, you are entitled to dividends. But if you buy on “CD” and sell on “CD” before “XD”; and/or buy on “XD”, you are not entitled at all.

Things To Note During ED

Pay attention on the amount given as dividends by the company. Large dividends payout might affect the share price once it goes ex-dividend. But you need not worry about the sudden plunge in share prices. Follow the 1-2-3 steps and use the information to decide on your next course of action.

You need to discount the dividend amount to get the exact trading price that the stocks should be trading for investors who are not entitled to the dividends. If the stock is trading above the discounted price, the stock is considered bullish. If the stock is trading below the discounted price, the stock is then considered bearish.

 

Example: Stock B is trading and giving out dividend of 7cents. On ex-dividend, Stock B should be trading at .93 for investors that are not entitled to the dividends. If Stock B managed to trade above .93, this indicates that Stock B is bullish. However, if Stock B falls below .93, it is considered bearish.

Stock’s behaviour

Every stock has its own unique movement. Some are volatile while some are pretty stagnant. You need to spend some time observing the share price movement and ensure that you are comfortable with their price range movement before you begin your investment.

For instance, UOB and DBS are considered high beta stocks with high daily fluctuations of up to (but not limited to) 20cents.

ComfortDelgro and SMRT are considered defensive stocks and are stagnate in price movements. Hence, you do not expect much movement over a short period of time on such stocks.

Some stocks that have wide movements can be hard to trade if you are an active trader. For example, Jardine group stocks which include Jardine C&C, Jardine Matheson and Jardine Strategic. These stocks have erratic movement which can pose substantiate threats to intra-day trading.

Erratic movement can be caused by a few factors such as liquidity issues. When you make a wrong judgment and share prices are moving against you, you would definitely want to exit the market with the least damage done. However, due to liquidity issue, you might be forced by circumstances to sell your positions at an undesired price which could result in heavy losses incurred.

In summary, active day traders should avoid trading erratic movement shares such as Jardine-related stocks or SIA. These shares are more suitable to

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Penny Stock Trading

How to Trade Penny Stocks – Must Have Info for the Penny Stock Trader

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How to Trade Penny Stocks – Must Have Info for the Penny Stock Trader

A penny stock is a stock that typically trades for less than five dollars. These low priced stocks offer part time investors the opportunity to invest smaller amounts of money and still see very attractive returns. This practice can be both tricky and lucrative.

If you are like most folks, you are trying to find a way to make some extra cash, but want to avoid as much risk as possible. Lucky for you, a lot of the magic of how to trade penny stocks and how to be an effect penny stock trader has been unveiled for you.

Many people spend many years developing research and strategies to help them figure out exactly how to pick penny stocks and how to trade penny stocks. If you know what you are doing, you can make a good deal of money trading penny stocks. Unfortunately, the window of opportunity is often small with these stocks, and the downfall is if you miss that small window of opportunity, you could lose a great deal of money too. As with everything, there is always greater reward for something with greater risk.

Often times, penny stocks have been known to double or triple in only a few days time which means that you can make some excellent returns in only a short amount of time. Penny stock trading isn’t for everyone. I am definitely not trying to discourage you in any way, but I am just trying to be upfront and honest. I have had fun and made some money trading penny stocks. I haven’t gotten rich, but I have generated additional income for my family, and I have also had a good deal of fun and learned alot along the way.

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Stock Trading

Winning the Stock Market Investing Game – Can Using Stock Market Metadata Help?

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Winning the Stock Market Investing Game – Can Using Stock Market Metadata Help?

There are two terms in the English language that bring a smile those of us who are looking to make money with our savings – “the best” and “investing”.  The problem is that not all of us can ever be sure these terms will consistently be used in one sentence to describe our performance when putting our money to work for us.

Today we’ll be looking at the term “the best” as it applies to the different ways of investing and gain a better understanding of what that means.  And in order to rate ourselves, it helps to put “the best” into context so that we can then determine how we measure up.

Best Place to Invest Money

Let’s start with the best place to invest money.  Well, this differs from person to person. There are a number of factors to be taken into consideration when making any type of investment.  Regardless of your choice of investment, the best way to invest is to do it intelligently.

The best way to invest money requires proper planning.  Questions have to be asked of oneself to determine if it will be either a short-term or long-term investment.  The resulting strategy to be used might actually be different.  But one thing is for sure – money must only be invested where its value will continue to grow.

Have a plan with specific goals in mind.  Then make a decision on the type of investment.  If investing in stocks is your decision, be prepared to do the appropriate amount of research before spending any of your money.  As a matter of fact, the same rule applies to any type of investing.

Hobbies are good examples of when investing can be fun and deal with a person’s passion for a specific focus of interest.  Whether it has to do with coins, stamps, trading cards, paintings, etc., they take great pride on the money they spend on what they accumulate.  And because they share a common passion with other individuals, for the most part, these investments bring value to them in interaction with others as the collection continues to grow.

But unless the collection contains some type of are commodity sought by other people, the chance of recovering one’s investment cannot always be guaranteed.  These types of investors are OK with that because they see value not in what the collection can be sold for but rather the feeling of pride and accomplishment the hobby affords the collector.

If your thinking is that the stock market is the best way to invest money, do it right or else your experience can end very abruptly with the loss of all the funds committed by you to this activity.

Investing in the Stock Market

Saying that you want to invest in stock market assets may be interpreted differently by many people.  It could be that you are either buying and selling shares in publicly-traded companies or mutual funds, trading stock options, trading currencies, and so on.

If you’ve decided on stocks, the natural assumption is that you have not only looked at stock prices for companies that are of interest to you but have completed a proper analysis.  This includes reviewing stock market history for these companies along with looking at stock charts to ensure their stock market results are heading in the direction you want.

Everybody knows the stock market attracts many investors.  For the most part, stock prices are reasonable and stock market results can be amazing.  A large percentage of the population consider stocks as the best place to invest money.

Investing in stocks is an activity that can help increase your net worth.  That is if you do it properly.  Shares in publicly-traded companies fall into one of about a dozen major stock sectors.  Regardless of the stock sectors, companies fall into one of three different classes each of which can be further classified into one of five separate categories.

Stock prices for shares in companies can be in a range from pennies to over a hundred thousand dollars each.  Smart investors do the proper research and analysis of companies that are of interest to them before spending any money.

But unfortunately, most investments made without the proper up-front work can also turn out to be very disastrous.  That’s one of the reasons why many people use stock market history, stock charts, stock market metadata analysis as well as a number of other sources of information to help plan their buying and selling decisions.

Why does the stock market attract so many investors?  The answer is probably because stock market results can be amazing. But unfortunately, most investments made without the proper up-front work can also turn out to be very disastrous. That’s one of the reasons why many people refer to stock market history, stock charts, and a number of other sources of information like stock metadata reports on the company before make their buying decisions.

The best stocks to buy are those that consistently appreciate in value.  It also helps if they pay dividends.  The problem is deciding on a specific stock to invest in.  One way to start is by examining companies that you are familiar with and whose products and services you use.  Look at publicly-traded companies with good reputations.

Popular Investing Techniques

There are some stock trading trends that have been gaining popularity, more specifically, buying stocks online and day-trading stocks.

Buying stocks online has become an ever growing phenomenon.  Investors and traders alike seem to enjoy the power of doing the deal without the help of a broker.  Because online access is a 24-hour event, people have the ability to immediately check on the latest stock prices and stock charts for companies of interest to them.

Day-trading stocks can be very exciting and quite profitable, that is if you know what you’re doing.  It’s a game where timing is everything.  Make the right decision and you’re a hero.  The wrong decision and you’re a loser.

Day trading is most often done by stock traders who do the deal when stock prices are right for them.  They can be going long or short on a specific number of shares because they know the target company’s stock market history and stock market results.

Regardless of the technique or approach you finally decide to use, there are always some basic steps that must be followed when investing in stocks.  Check out the stock market history and more specifically, the direction of prices for the stocks.  Then compare the performance of those company shares to stock market results for companies in similar stock sectors.  How do they compare to overall stock market results?

Remember to always analyze a company’s stock performance over an extended period of time. Carefully review the available stock metadata to determine facts like how much the price can typically vary during the day, when their stock prices are usually at their highest or lowest points during the day, and so.

But no matter if you use do your investing online or follow the time-proven standard of using a reliable stock broker with whom you have a good business relationship, you still have to complete the work necessary to ensure your investing success when buying or selling stocks.

Remember, always refer to the stock metadata reports on companies in which you want to invest.  This can help you spot directional trends that these stocks may be following.  If you are unfamiliar with stock market metadata, which is also simply referred to as stock metadata, more information can be found here.

Numerous examples of stock metadata reports can be found on the Bulls-with-Bears page of the Stock Market Keywords site.  It also helps to review their stock charts which you can easily find online.  Links to this type of information can also be found there.

Closing Comments

Although the stock market dropped quite a bit over the past year, indications show the economy is improving and with that, the market is going up.  Now only time will tell if stocks will be the best investment for people to make.

Stan Pokutylowicz is a senior Information Technology consultant who has been providing his services to major industry sectors (automobile manufacturing, airplane manufacturing, banking, engineering, food production, pharmaceuticals, rail transportation, telecommunications, etc.) across North America. He is recognized as a methodology expert (SDLC and PMM) and has both taught and coached Information Technology project team members the skills they need to deliver results, on time and within budget.

Stan has combined his technology skills with his passion for helping people understand the stock market. He is the System Architect and site-design specialist for Stock-Market-Keywords.

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