Penny Stocks - Stocks Ready To Soar

By Marco Davies

You should know that the Penny stocks are ordinarily proposed by a concern that has been established for less than three years and has under 5 million dollars net assets, or a concern that has a minimum of 3 years of operating time, and has less than 2 million dollars in net tangible assets or a company has 6 million dollars gross income for three years. There is a mature marketplace for the penny stocks, all the same these shares have very determined liquidity. This is merely one of the causes of the penny stock market's volatility, nevertheless these markets remain very popular.

Penny shares, are now and again also termed as 'micro cap', are low valued shares normally traded in the over the counter market. Nearly all of the stocks and shares are obtainable for a penny that is why these are known as penny stocks.

OTCBB: OTCBB provides complete data for more than 3000 stocks including real time, quotes display, last price and quantities. These equities are usually not dealt with in any of the national stock exchanges. The Over The Counter Bulletin Board digitally supplies as they happen quotations for home as well as foreign stocks and ADRs, plus it shows past days trading activity in DPPs. There are in excess of two hundred market makers are certified at the OTCBB with over the counter or OTC bulletin boards chosen over pink sheets.

Pink Sheets: The Pink sheets is published and sustained by Pink Sheets LLC and it shows bid and requested quotation costs of different penny stocks. Concerns listed in pink sheets are the most risky as most of the businesses simply meet the minimal prerequisite for listing, although penny stocks at pink sheets are lightly bought and sold. A good many businesses pay dealers] for dealing these penny stocks and therefore some traders|agents] use deceptive activities to sell the stocks and obtain money from people.

In a number of the instances, just a couple of market makers are actively involved in a specified penny stocks and obtain and sell these specific securities only. Dealing with a market maker is preferable, as the market maker not only sells the specific stocks but it in addition buys the shares. Close to two hundred and thirty market makers are approved by the Over The Counter Bulletin Board and these market makers buy and trade stocks on a frequent basis. It is also preferable to observe that a larger number of market makers are accessible for specified stocks because the less market makers there are available, will often determine or control the particular stocks. In these instances the investment funds in the unique penny stock is risky as these few market makers can manipulate the costs of the shares and thus can maintain a wide spread between the sale and buying terms of the stock. Not too long ago a few of the market makers were found to be engaged in deceptive activities.

There is a seasoned market of penny stocks that are bought and sold at Over The Counter Bulletin Board and pink sheets. Over The Counter Bulletin Board is governed by the rules of the SEC of the U.S.. - 23200

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If You Are A Newbie Then Take Time To Learn How To Trade Stocks

By Michael Scott

The present economic scenario may not exactly be the rosiest but it is nevertheless a good time for the ordinary investor to learn how to trade stocks. What's more, the advent of the Internet has opened many more exciting opportunities for the ordinary person which is why it will pay for you to jump in and learn the ropes and because stocks can easily be traded online it has now opened up the doors for more investors to become involved in trading stocks.

Furthermore, today, a lot more information is available about companies listed on the stock exchanges and this means that with some research it becomes possible to judge the merits and demerits of these companies. Once you get to know how a company is performing and also how it will perform in the future you then have a better chance of entering into a profitable trade.

When it comes to learning how to trade stocks you will also do well to understand that by buying stocks in a company you are in effect becoming part owner of the company. Therefore buying stocks in companies that are expected to do well in the future will help you earn money as the better the company performs the higher its stock prices will rise. This means that you only need to learn how to buy when the prices are low and sell when the prices are sufficiently high.

For traders that are willing to take risks there are many good and volatile company stocks that you can think of trading in and which will give you quicker and more significant gains. Google is a very good example of a good solid and volatile stock. Of course, if you are even more carefree about the type of stocks you want to trade in and your appetite to bear risks is even more then you can consider trading in Penny Stocks that can help you earn the best returns and also the biggest losses.

Making trades in the stock market is however a very popular activity today and given the fact that there are numerous online broker companies willing to help you make a good trade more and more people are becoming stock traders. What's more, it is not so hard to pick up the basics of making a good trade; but at the same time you need to be disciplined because making money out of trading in stocks is never easy - even in the best of times.

If you want to trade in stocks you will need to choose from among the leading American stock exchanges including the American Stock Exchange, the Nasdaq Stock Market, the New York Stock Exchange, the Pacific Exchange and the Philadelphia Exchange.

So, in order to learn how to trade stocks it is necessary that you do not confuse the shares in a company with a contract or agreement between two parties (an option). This means that you will not be, when trading in stock options, buying a stock outright and instead you will be entering into an agreement and this is why the latter case works out to be cheaper and also more profitable.

Trading in options also means being exposed to lower risks as compared to holding stocks - though this is not the case each and every time that you trade in stock options. For more help and advice as to how you can profit from trading in stock options you should get in touch with a broker. They are well qualified to help you learn how to trade stocks and they can also guide you and show you which options are the best for your case. - 23200

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This Is A Bull Market For Gold

By Michael Swanson

Something that has been widely reported on lately in the stock trading world is the fact that the gold price going is rising. This has opened up a whole new reason for people to invest money, but of course before you do so you will want to know why this inflation has taken place.

You can tell that gold prices are higher than they have been because there are many more kinds of advertising on the television as well as articles in magazines trying to coax people into getting rid of the jewelry that they don't want any more in exchange for money. This allows the buyers to get the gold melted down and sold for a higher price

Because many people are in financial hardship they will do anything to keep their head above water, and as they are able to meet their needs by getting rid of their gold, they are not bothered that others will benefit further. Another reason for the craze buying of gold is that people are no longer wishing to invest their money in currencies such as the dollar which has declined in worth since the recession and the hand outs that have been given to help so they know that gold investments is a sure way of making profits.

It is the season that both Christmas and Diwalli is upon us, so people want to buy gifts to show that they care. This opens the market to people who are wishing to sell, and with the prices hitting high they are sure to be able to benefit from the people who wish to make such purchases.

One thing that is definite is that when the price of gold rises you can see that people somewhere are suffering some kind of hardship. This means that people have to look for other ways to make their money, and invest it in so that they are able to make even more. It is a fact of life that wealth is always balanced and that if one person or group of people are lacking in money, someone else is gaining, and of course everyone wants to be profiting so are therefore choosing a venture that allows them to do so.

This article will have shown you how and why the gold prices have risen and why even though some are suffering others are managing to make money through gold investment. - 23200

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What Is The Power Spike Swing Trading Strategy? - An Exceptional Stock Trading Strategy You Should Check Out!

By Kevin Butler

Are you seeking a swing trading strategy that delivers above-average profits?

I know exactly how you feel - in fact the reason for trading stocks is to make money. And using a solid swing trading strategy will let you take advantage of high profit opportunities.

** I HAVE A SECRET TO TELL YOU... AND IT IS THIS:

The Power Spike Swing Trading Strategy has hit Wall Street like a sledgehammer, producing huge profits for thousands of traders including myself. And it can do the same for YOU!

The most consistent and reliable swing trading strategy is one based on a solid technical pattern. And the Power Spike Swing Trading Strategy is a unique technical pattern that consistently produces huge profits, over and over again.

** WHAT IS A POWER SPIKE?

A power spike occurs when the volume of one day explodes far higher than the volume of recent days. For one reason or another, the stock is experiencing many more transactions than normal.

The importance of a power spike is that it identifies a moment of extreme emotional trading. People are leaping into and out of this stock very quickly. And a great trading opportunity develops because this level of high emotional trading often produces a strong move in price.

A power spike indicates that a strong price move is imminent.

This highly profitable technical pattern is the foundation of The Power Spike Swing Trading Strategy. And we can utilize this technical pattern to identify outstanding swing trading opportunities.

** WHAT'S THE SECRET METHOD OF FINDING A HIGH PROFIT POWER SPIKE? It is this...

Envelope Penetration.

The method used by The Power Spike Swing Trading Strategy to identify and locate a power spike is:

1. Apply Bollinger Bands to the volume data.

2. When the volume exceeds the upper band or envelope, a power spike has occurred.

3. The percentage of the total volume that appears above the upper band determines the strength of the power spike.

*** WARNING *** ONLY CONSIDER TRADING POWER SPIKES WHERE A MINIMUM OF 15% OF THE TOTAL VOLUME OCCURS ABOVE THE UPPER BAND.

Stronger power spikes increase the odds of a successful trade. So when you use The Power Spike Swing Trading Strategy you'll prefer trading the stocks showing the strongest spikes.

When a power spike shows less than 15% penetration, it is weak and shouldn't be considered a feasible trading opportunity. Fortunately power spikes occur all the time in many stocks, so you'll always have plenty of strong spikes and opportunities to earn profits.

One of the most reliable and profitable opportunities available is found in The Power Spike Swing Trading Strategy and thousands of traders are taking advantage of this technical pattern right now to earn staggering returns. This is one proven pattern and a powerful weapon for your stock trading arsenal. - 23200

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Find out more about The Power Spike Swing Trading Strategy today. And don't miss Kevin Butler's FREE Stock Trading Course The Master Plan to Successful Stock Trading & learn how to trade like a pro.

Advice for Options Traders

By Tom Lidge

Having traded stocks for over a decade, I've recently gotten very involved with options. I find these to be a great means of expanding my risk portfolio a little bit, and the rewards of a successful trade are truly a great thing.

I would advise you to study up on options as much as you can before you begin trading them. Too many people learn the hard way by losing the entire amount of their investment. Don't let that be you. Here are a few words to the wise that I hope you'll take seriously.

The first thing I'd like to talk about is the time decay factor. Options tend to deteriorate in value over time due to the fact that as you're further out from the expiration date, the likelihood of volatility is higher.

Let's say you buy a contract for December while we're in the month of April. The stock price is at $13, and the strike price on the contract is $16. Clearly, there's a higher percentage chance that this stock will break $16 between now and December than there is between now and May. As a result, contracts with an expiration date that's further out will sell at a higher price.

Many smart traders also like to hedge their risk by doing things like straddles, or buying puts on their calls and the opposite as well.

It might end up cutting down on your profits a bit if you win, but this will really hedge you if you lose big time. I've seen way too many people lose everything they invested, simply for the fact that they failed to hedge.

Sure, you might not make as much money as you otherwise would have, but investing something like 5 or 10% in the opposite outcome can ensure that you lose much less than all of your investment should your option never hit its strike price.

By adhering to these tips, I'm sure of the fact that you'll be well ahead of the typical novice. - 23200

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For more articles by this author, read his blog about cheap worldwide travel insurance deals policies and single trip holiday insurance ideas.