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Penny Stock Trading

Penny Stock Picks: 6 Rules To Follow

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Penny Stock Picks: 6 Rules To Follow

Penny stocks are high risk, high reward stock plays. When buying these high risk stocks you must pick the right stock to buy at the right price. If you pick the wrong stock or you time your purchase poorly you will lose some money, maybe all of your investment. On the other hand with the right stock and the right timing you could make a huge profit on a small investment. This is stock trading and all stock trading is unpredictable, this becomes even more apparent in penny stocks. Even with research you will pick wrong some times, limiting the losses and riding the profits will enable you to be successful and limit your overall risk.

1. Its a safer to play the listed penny stocks or the over the counter bulletin board (OTCBB) stocks than the pink sheets. Especially when your just learning. The OTCBB stocks must file with the SEC so there is more information available on the company such as the share structure and financial background. You can also find plenty of low priced stocks trading on the major exchanges such as the nasdaq.

2. Look at a companies history, watch out for reverse splits, look for a long record of trading without manipulating stock price or operating shares. These companies will be safer. There is a lot of fraud in the penny stock market and looking at a companies history will help you weed out some of the bad ones. At first avoid “penny stock picks” especially of new companies, just watch the price you could buy at and outcome. They are not usually a good investment, but may be good for quicker trades once you know what you’re doing.

3. Find out what makes the company valuable, do they have a lot of land, oil, gas or diamond mines. Are they ripe to be acquired by another company, are they making their own acquisitions. Do they have patents on their products or patents pending. What is their reputation in the field. If you live in their area or know someone in that area, go visit the facilities.

4. What are the negatives of a company, what do they owe, what are they’re debts and liabilities? If a company you like has too much debt, when that debt is called they may need to sell shares (dump) into the market to raise the capital. Ideally you want a company with no debt for the time frame you wish to own it.

5. Penny stocks in the areas that are running on the major exchanges are usually a good bet, if oil is strong look for oil penny stocks. Same for gold et al. Emerging markets and fast growing industries are also ideal for investment. Stay on top of the market in general take that knowledge to these low priced stocks. Research what will be hot over next few years and then dig through these low priced companies.

6. Decide how much money you will spend/invest on penny stocks. Just a little bit of money, a small percentage of your portfolio and then don’t go over your budgeted allotment. Always be safe with your money, don’t fall in love with a stock, don’t risk money you don’t want to lose. Often traders will allocate 5-10% of their portfolio to the riskier stocks.

If you visit trading stock sites ensure they are reputable. A lot of sites themselves are paid for by companies looking to promote their stock. The Penny Stock Blog is a site worthy of your time.

If you love Penny Stocks view some picks or place your own visit our Penny Stock Forums or read a great article on how to Buy Penny Stocks

Article from articlesbase.com

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Penny Stock Trading

Penny Stocks Twitter – Follow Us On Twitter to Get the Latest Penny Stock Picks

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Penny Stocks Twitter – Follow Us On twitter to Get the Latest Penny Stock Picks

Follow Us on Twitter https://twitter.com/STOCKSWAGER

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Stocks Well Off Lows But Still Down In Mid-Morning Trading

Stocks have moved well off of their worst levels since the opening bell but remain mostly lower in mid-morning trading on Thursday. Prospects of a dwindling economic recovery, concerns over the job market and disappointing quarterly results from Cisco (CSCO) are driving selling pressure, with the tech sector experiencing a particularly sharp decline.

The tech heavy Nasdaq is down by 28.07 points or 1.3 percent at 2,180.56, the Dow is down by 74.62 points or 0.7 percent at 10,304.21 and the S&P 500 is down by 9.63 points or 0.9 percent at 1,079.84.

Before the start of trading, the Labor Department reported that initial jobless claims rose to 484,000 in the week ended August 7th from the previous week’s revised figured of 482,000. Economists had been expecting jobless claims to fall to 465,000 from the 479,000 originally reported for the previous week.

Commenting on the data, Peter Boockvar, equity strategist at Miller Tabak, said, “Bottom line, seasonal distortions or not, initial claims are still too high and point to a still lame labor market.”

Earlier in the day, RealtyTrac, an online marketplace for foreclosure properties, said that foreclosure filings in July dropped 10 percent from last year but grew 4 percent from the previous month.

The market researcher said one in every 397 U.S. housing units received a foreclosure filing during the month. July’s bank repossession increased both year-over-year and sequentially.

Cisco Systems, which reported its fourth quarter results after the closing bell yesterday, is also weighing on the markets. The firm said its fourth quarter earnings per share, excluding items, beat analyst estimates by penny, but its quarterly sales were short of estimates.

While Cisco also said it expects first quarter revenues to increase by 18 to 20 percent, analysts had been expecting slightly stronger growth.

This morning, Kohl’s Corp. (KSS) reported second-quarter net income and revenues that edged out forecasts, although the firm’s third quarter earnings guidance missed expectations.

General Motors reported a profit for the second quarter of .3 billion, up from 5 million in the preceding quarter, while sales at the Detroit-based company came in at .2 billion, versus .5 billion in the first quarter.

Sector News

Tech stocks are among the morning’s worst performers, with networking, electronic storage and semiconductor stocks all markedly lower.

The NYSE Arca Networking Index is down by 4.2 percent, falling to its intraday level in over a month, with Cisco helping to lead the way lower.

The Philadelphia Semiconductor Index is posting a 1.9 percent loss after setting a six-month intraday low in earlier dealing.

Housing, trucking and defense stocks are also seeing heavy selling, while gold stocks are higher, benefiting from the day’s risk aversion. The NYSE Arca Gold Bugs Index is up by 2 percent, while the price of gold is up by .60 to ,214.80 an ounce.

Stocks Driven By Analyst Comments

Electronic storage firm NetApp (NTAP) is notably lower after being downgraded at Merriman from Buy to Neutral. The stock is down by 7.1 percent after setting its lowest intraday price in nearly five weeks.

Networking firm Finisar (FNSR) is also under pressure after analysts at Auriga U.S.A. lowered their rating on the stock from Buy to Hold. The broker also downgraded its target on the stock from to . Shares are currently down by 7.6 percent and also set a five-week intraday low.

Weakness is also present in shares of tech firm Flextronics (FLEX), which are lower after Ticonderoga dropped its rating on the stock from Neutral to Sell. The stock is posting a loss of 3.9 percent after falling to its lowest intraday level in nearly six weeks in earlier trading.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region ended on the downside Thursday. Hong Kong’s Hang Seng Index and Japan’s benchmark Nikkei 225 both fell by 0.9 percent.

The major European markets are also under pressure. The French CAC 40 Index and the German DAX Index are both down by 0.5 percent, while the U.K.’s FTSE 100 Index is down by 0.2 percent.

In the bond markets, treasuries are moderately lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.724 percent, posting a gain of 3.9 percent.

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Stock Market Trend-to Follow Or Not to Follow a Trend

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Stock Market Trend-to Follow or not to Follow a Trend

Many individuals who are new to stock market trading, investing, or day trading are keen and ardent followers of the Stock Market Trend. Many amateurs in trading depend on trends to buy and sell stocks, hoping to make some money. Many do make money by following trends, but not as much as the professionals do. Amateurs in day trading forex currency also follow trends and do make some money, but not as much as the professionals do. In many cases, they may even lose money by following a trend. Basically a trend is the direction that the market will take for a certain period of time. The trend may be for several weeks, months, and even years. A trend or prediction of a trend is based on the technical and fundamental data available and its analysis.

A ‘Bull’ market trend occurs when prices of stocks rise on a daily basis as more and more investors buy stocks, expecting to sell the stock for a profit at a later date, maybe in a few weeks or months. A ‘Bear’ market trend is when prices start sliding and every investor wants to sell quickly and make as much profit as possible. This is a herd mentality where everyone is running in one direction, either to buy or sell. This Stock Market Trend of a ‘Bull’ or ‘Bear’ market and herd mentality not only applies to the stock market, but trends also apply to other markets and financial instruments like mutual funds, gold, real estate, etc. Amateurs involved with day trading forex currency also follow trends and are prey to the same problems that plague amateurs and investors in the stock market.

Following a trend may be beneficial for some early bird investors and traders who have bought early when the prices are rising and sell quickly when the prices start to slide. But most investors and traders adopt a wait and watch policy and either buy when the prices are quite high and hold on to the stocks, even when prices are falling, in the hope that prices will rise and they can make a profit, but eventually sell at a loss. The professionals, whether in day trading forex currency, or the stock market, buy stocks and currency when prices are low or going doing, and sell when prices are high or moving upwards. In short, professionals go against a Stock Market Trend, and make money when the trend reverses. The professionals start selling when amateurs and investors start buying stocks as the price rises in a ‘Bull’ market trend, and start buying when the investors sell in a panic in a sliding ‘Bear’ market trend. To become a successful day trader or investor, an individual must do what the professionals do and not go along with the herd. This leads to disasters as seen in the rapid meltdown in the stock market recently, where millions of investors lost trillions of dollars.

For more information on Stock Market Trend or day trading forex currency , please do visit our site or write to us.

Article from articlesbase.com

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