Category Archives: Penny Stock Trading

Penny Stock Trading

What Are Sub-Penny Stocks?

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What Are Sub-Penny Stocks?

Many people, who are not too familiar with the world of stock trading, are unaware of the different kinds of trading stocks available. So people often wonder about what are sub-penny stocks, when they come across the term for the first time. This type are those stocks that are traded between the price range of .0001 and .00. These stocks are generally traded over the counter or by use of quotation services including OTC Bulletin Board and Pink Sheets.

As per records, sub-penny stocks trading can run into millions of dollars during the course of the day. These generally come across as attractive trading options for new investors who are drawn in by the extremely low price of the stocks and perceive them to be a means of gaining rapid profit, in case they gain quick value in the market. However what many investors are not aware of is the fact that these cheap stocks can cause much loss for them in the long term.

Even though many people feel that stock trading is a very easy way of making profits, it is in fact much more complicated than it seems. People not only need to be well informed about various trading stocks and the various factors that affect their market value, they also need to be fully updated about the risks involved and the market fluctuations that can help in causing the downfall or rise of a particular stock. This is especially true for people who deal in sub-penny stocks.

Cheap stocks like sub-penny stocks, might seem quite alluring but they are quite risky as compared to high trading stocks. There is no chance of recovering the money once an investor faces a downfall in these stocks. Moreover, there are numerous scams involved with trading of cheap stocks as they are quite often promoted to enhance various illegitimate pump and dump schemes in the stock market.

So to be on the safer side, it is always advisable to do trading in high trading stocks. Even if a downfall occurs in such stocks, there is always a possibility that the stocks will reach back to its highest point thus enabling stable investors to recover their money as well as earn a good profit. Even though sub-penny stocks provide instant profit, it is only short term and also involves much risk, making it best avoidable for stable investors.

Next, check out our penny stock picks that have made huge gains. Your #1 spot for top ten penny stock picks.

Article from articlesbase.com

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Hot Penny Stocks 2009 > Top Otcbb Micro Cap Picks Alert – Cheap Stocks – Low Float Plays

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Hot Penny Stocks 2009 > Top Otcbb Micro Cap Picks Alert – Cheap Stocks – Low Float Plays

BY.-  http://www.MomentumStockTrading.com

A beginner usually feels very attracted to the stock market while for example discovering a penny stock that’s being reported in CNBC or the news program and watching it rise steady fast and make new highs from to in just 2 months.

While learning about this successful news story he’s saying to himself “Oh boy if I was one of those lucky guys who bought that cheap stock back when it was priced at I easily would have tripled my money by now… That means my 10 grand would transformed in to a whooping 70 K! hassle free … I would have been able to grab one of those big HUMMERs on the spot and probably pick up a nice Rolex by the way!”

The stock market news constantly reports of hot small cap stocks that are breaking out and making tremendous gains on the same day or doubling in price in just a few hours. Back in the bull market of the late 90’s you could easily see a good number of hot stocks sprouting out every week.

Those years surely made it look like every body could easily take LONG SHOTS and make a shiny pile of gold every day in the stock market. But today’s market is a different story. A totally different animal.

Some say that the stock market has gotten more realistic. Fantasy land is over and GAMBLING YOUR WAY TO RICHES is not an option anymore. You might get lucky a few times, but your constant loses can wipe you out sooner or later.

The fact that the bull market period has ended for now doesn’t mean that you can’t make a great deal of money in today’s market. A lot folks from many walks of life keep making excellent profits on a daily basis, pocketing hundreds & thousands of dollars by trading penny stocks online.

Success in penny stock trading starts by applying a wiser and REALISTIC methodology for choosing hot penny stocks as well as for getting in and out of them with profits in mind.

You need to look at the stock market more realistically. You got to learn that you can benefit when stocks go up and also when they FALL down.

You got to WORK SMARTER and get more selective about the hot stock trading opportunities that you choose. You need to embrace the nature of day trading and be fully prepared to take advantage of stocks that are poised for a BIG RISE on the same day.

The bottom line is you have to PREPARE YOUR SELF to be successful, just like you would do it in other areas of your life in order to achieve success.

Momentum Stock Trading helps stock traders and investors take advantage of practical stock trading opportunities every day at http://www.MomentumStockTrading.com

Article from articlesbase.com

Penny Stock Trading

Penny Stocks: Profitable Or Risky Investments?

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Penny Stocks: Profitable or Risky Investments?

For those who are interested in investing in penny stocks, the advice given regarding these investments is often contradictory. Some promote penny stocks aggressively, saying they are the best way to capitalize on your investments. Others warn you away from them altogether, saying they are too risky for investing your hard earned money. So which of these positions is correct? The answer is “both” as penny stocks can be both a lucrative investment and one with a lot of risk.

First, why are they considered a lucrative investment for some? In large part this is due to the earning potential these stocks have due to the buying power it gives small investors. If you only have 00 to invest, you often have the choice between buying 10 regular shares at 0 a share, or 1000 penny stock shares at a share. If the regular share’s value increase by , you will only earn , but if the penny stock’s value increases by only ten cents, you will have earned 0. It is for this reason they are considered very profitable.

But why are they also risky? The answer to this is complicated, but for a large part they are more risky than regular stock offering because the stock’s value may have been manipulated through deceptive marketing practices, such as the company paying individuals to promote that stock on stock message boards or give false positive reviews.

So, in conclusion, if you are interested in entering the world of online penny stock trading, you need to do so with a careful and systematic investment strategy, and be aware that these stocks can be both lucrative and risky investments.

You should also checkout the Penny Stock Prophet, an excellent penny stock guide that teaches you valuable penny stock advice and techniques to succeed in penny stock investing.

Article from articlesbase.com

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Penny Stock Quotes- Learn Basic Chart Interpretation Skills to Comprehend Quotes

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Penny Stock Quotes- Learn Basic Chart Interpretation Skills to Comprehend Quotes

Making money trading penny stocks is very possible. However, success comes to those who try to trade and to endure the problems they come across. As most investors are aware of, penny stocks provide a very high risk to the traders. This is not a thing to keep worrying about. Risks are normal in many forms of investments. In this particular area of penny stock investing, basic trading skills acquisition is necessary. Included in the basic skill concepts are penny stock quotes. The most important thing for traders is learning how to read and interpret various market quotes.

This knowledge is very essential when an investor want to trade without an expert’s assistance. Further, who wants to rely on professionals forever? Trading can be easier and faster when a trader learns to read the quotes. In addition, it makes his or her understanding of much complex sections of trading simple. Learning about penny stock quotes includes:

The stock charts

The charts contain the time frame categorized in minutes, hours, days or even months. They as well feature the low and high values per given period of time. Charts also outline the opening and closing price per specified period of time. The first step a trader wants to take is to locate a website with a free stock chart. The main search engines such as Google and Yahoo have stock charts that have no charges for using them.

A person does not require a registration as well. The main reason to use a penny stock chart is to learn how to predict the future of the stock. The most common type of stock charts are the OHLC (Open, High, Low, Close) charts. These charts have various features that an investor must know about. One is called the volume bar, which is indicated by two vertical lines in the chart. Another feature is a high and low value indicator. The vertical bar placed on top of the volume bar shows the high and low values.

The lowest part of the bar indicates the low value while the topmost part of the bar shows the high values. It is important to note the tail, also called a wick. This can be defined as a short and thick bar with a thin line inside it. The slender line depicts low and high values. The thick bar, which is simply a thick line covering the thin one shows open and close values. One is likely to note the shaded part of the bar to distinguish the open from the close. When the close is lower than the open, the bar’s shade is fully black or red.

When it is higher than the open, the bar’s shade is fully white or green. Same price trading scenario including similar opening and closing price presents no shades. As a trader searches for the charts, he or she will notice that they are drawn differently. The charts provide the very basic knowledge of reading penny stock quotes. There are other charts details that are very useful for a trader. Using the Internet to discover other basic tips is very recommended.

G. Smitty is a writer who loves to discuss many topics ranging from penny stock screener to professional basketball. Thanks for reading!

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How to Find Quality Penny Stock Reports Online

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How to Find Quality Penny Stock Reports Online

With a large number of people investing their hard earned savings in stocks, there is a big need to get into the habit of investigating which stocks are the best ones to invest in.  As a result, those investing in penny stocks are constantly on the lookout for reports on this subject to help them make their investment choice.

As the name suggests, a penny stock is a stock that trades at a very low price.  But there are high risks involved and if you do not understand them properly, it could result in severe losses.  The lack of information on the subject is one of the major factors that make these stocks very risky.  This is why it is vital to do proper research before investing in these.

If you want to be sure your investment doesn’t fail, you should make sure you have complete information on your chosen stocks from reliable sources. The question that arises here is this – which are the most dependable sources through which you can access reports on these stocks online?  The answer is clear… the websites dealing with topics related to online stock trading.

It is advisable to research every possible nook and cranny of the internet to gather information on the topic.  The simplest way of doing so is to post your query in the top search engines available on the internet and to carefully study their results. Type in your keywords and within minutes you will have pages of websites dealing with the subject.

Some of the websites are general portals with information related to various aspects of money and finance. A few are specialized niches dedicated explicitly to stocks and can give you all the details about penny stocks and their prices, with a word of advice on which is the best pick. Many of these websites are performing a great job of keeping investors abreast with the latest stock news and hence can be a great source of genuine information.

Information on the subject can also be taken from discussions on online forums, news updates on stocks on the internet and newsgroups, besides a host of online financial publications as well.

Next, check out our penny stock listings that have made huge gains. Your #1 spot for penny stock report.

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