Penny Stocks Investing

www.timothysykes.com 4 real-time trade alert newsletters: TIMalerts, PennyStocking Silver, PennyStocking Gold and PennyStocking PRO www.timothysykes.com 90+ hours of instructional trading content in 10 DVD packages: Learn Level 2, Learn To Read SEC Filings, Best Of LiveStock, PennyStocking, PennyStocking Part Deux, TIMfundamentals, TIMfundamentals Part Deux, ShortStocking, TIMraw, and TIMtactics How Timothy Sykes Turned 415 into .65 million in 4 years and is now the #1 ranked trader out of 45000 on Covestor (also has 3 students in the top 10)…his blog, DVDs and newsletters teach this proven strategy www.timothysykes.com 4 real-time trade alert newsletters: TIMalerts, PennyStocking Silver, PennyStocking Gold and PennyStocking PRO www.timothysykes.com 90+ hours of instructional trading content in 10 DVD packages: Learn Level 2, Learn To Read SEC Filings, Best Of LiveStock, PennyStocking, PennyStocking Part Deux, TIMfundamentals, TIMfundamentals Part Deux, ShortStocking, TIMraw, and TIMtactics
Video Rating: 4 / 5

To understand how to trade penny stocks, first you must block out all the hype.  Penny stocks are not cheap despite their name and in fact they require more caution and savvy than standard stock trading.  So the first step to understanding how to trade penny stocks is to ignore anyone trying to sell you hype and hope.

To really begin trading penny stocks, you have to find a broker to help you execute the actualy penny stock trades. Penny stock brokers are just standard brokers who offer better deals than other brokers on executing penny stock trades.  Zecco is probably the cheapest of them all, but you should really consider working with a full service broker like Fidelity until you really know your way around online stock trading.  It may cost a little at first, but the peace of mind will provide immediate value while the wisdom gained will provide lasting value.

If you’re really serious about beginning your online trading with penny stocks, I suggest you reconsider.  If you’re stubbornly clinging to the dream, then at the very least be very careful who you choose for your broker.  Many broker-dealers out there have a singular purpose to exploit novice investors seeking fast money through penny stocks.

After you have your broker chosen, you have to put your finances on the line.  Well, not really, but this is the big, risky step: you have to link your brokerage account with a bank account.  Create a new bank account separate from your existing checking or savings accounts. Link that one with your brokerage account.  Make sure you have enough money in it to satisfy any minimum requirements set forth by your penny stock broker.   Your processing of how to trade penny stocks is now set in motion.

After you are technically setup to trade, you find some penny stocks. The golden rule of penny stock trading is to never, ever have someone tell you what to buy.  No website, penny stock newsletter or forum should inform you or make your decision for you.  As soon as you think, “Oh this penny stock newsletter assures me this magical stock picking robot will make me rich overnight,” than you’ve begun paving your road to financial ruin.  Seriously, people, don’t be such foolish suckers.

To find your own penny stocks, you should familiarize yourself with the Pink Sheets and the OTCBB (Over-the-Counter Bulletin Board). Once you’ve picked a few interesting stocks, its time to research them with the tools provided by your broker (you did pick a full service broker, right?).  Your broker should help you with these tools.

Once you’ve picked the stocks, you can put in a “bid” with your penny stock broker. This essentially executes the buy order.  You must specify the volume (the number of shares), the price (your bid), the exact ticker for the stock and your expiration date.  The expiration date keeps your order from being fulfilled after the stock has taken a nosedive and you no longer want it.  At its simplist, this is how to trade penny stocks.

More Trading Penny Stocks Articles

Learning to trade penny stocks effectively can be very lucrative.

Penny stocks can also be extremely risky if you don’t know what you are doing.  Golden rule:  Never fall in love with a penny stock.

You might be asking- What is a penny stock?  A penny sock is considered any stock trading on the pink sheets or otcbb.

Penny stocks are risky and require research.  Alot of the companies trading penny stocks have limited information and histoey.  Often they are just shell companies.  A shell company is an actual company but does not have assets or actually do business.

You might be asking why people are attracted to penny stocks if there is so much risk involved.  The reason is simple- there is alot of money to be made if traded correctly.  Penny stocks can run up real quick-  Often this is done by pump and dump schemes.  This basically means a bunch of people get together to promote a stock with false expectations of what company is planning to do etc.  They feed investors a bunch of fluff basically.  They run the price up, sell the stock than dump the stock.  This leaves alot of what you call bagholders (People who bought into the stock at the height of the run)  Now, if you bought at the low end and sold at the high end than you made out.  You pretty much should take your profits and move on to the next penny stock.

For example- One of my most recent and lucrative penny stock trades was of a stock with the symbol TPHM.  I bought 2 million shares at .0003 share price (which cost me 0.00 plus the .99 fee for the transaction from etrade)  A week later, the stock ran to a high of .0045  (Note: I sold at .0039)  I made 00.00 less the .99 etrade fee so I profited 00.00 off of my 0.00 investment (less etrade fees)  and actually, that was a mistake on my part (a pleasant mistake)  When I bought TPHM, I forgot to preset my sell order (which I always do).  I usually set my sells ahead of time.  (mind you, I play alot of penny stocks at one time). I usually set them where I will double my money than I get out (this usually leaves me profiting a few hundred dollars a trade)  I learned this the hard way, when I first started trading penny stocks in 2005, I had the get rich mindset where I would buy lots of shares and hold onto them with the expectations of making thousands and thousands of dollars all the time.  Needless, to say I lost my initial investment in 2005.  As I do with everything else in my life, I went on a mission and researched so much on penny stocks and trading because I was mad that I lost my money and I wanted to make my money back.  I am glad I stuck with it but I did learn the lesson of NEVER falling in love with a penny stock the hard way.

I always do my due diligience before investing in any penny stock and only play a few hundred dollars at most on any given one.  Some of the factors to look for when learning to trade penny stocks is to research the company  (Pinksheets.com is a good place to start.  You can find alof of info there)  Learn to read charts, Know the history of reverse splts for that stock, outstanding share number, authorized shares, read any recent company filings etc.  Visit the company’s website  (You can get alot of this info from pinksheets)

Penny stocks are cheap, alot more volatile which gives the opportunity for a much higher ROI (Return on Investment).

I never recommend trading penny stocks unless you know what you are doing.

You can make alot of money by just investing a little but you need to know the stocks to pick, the ones that are poised to run and most of all, know when to sell.  Don’t fall in love with a stock and DON’T GET GREEDY.  Keep reinvesting and make alot more over the long run.

As Kenny Rogers sang in his gambler song (Know when to hold them and know when to fold them) because basically, Penny stocks are a gamble

Learn to trade penny stocks 

Penny stocks are not found in the typical markets that most stocks in your portfolio might be, such as NASDAQ, NYSE and AMEX. Since penny stocks are traded outside the main markets, there’s a lot more room for investment from experienced and inexperienced investors. Penny stocks really help you develop a greater understanding of how the market works, from the very finite details and inner workers of the trading counters.

As penny stocks are not traded on the main markets, it’s important to find a trusted broker or side exchange market to facilitate the purchase of stocks. In order to be truly effective as an investor, you must understand the ‘bid and ask’ price connection. The difference between the bid (real) and ask (selling) price is called a spread and is the base in which you will calculate your earnings. This is particularly important as penny stocks are sold by estimated values versus a single unit price. It is wise to install a stop-loss tactic and protect your capital with prudent exit strategies. This is both high risk and high reward. So, it’s very important to know what you’re doing, and listen to the experts.

When researching what penny stocks to invest in, it’s important to do your research. Make sure you know what the company’s product is, and how it’s used in the marketplace. Identify what type you want to invest in, micro cap, small cap or large cap companies. These terms relate to the amount of capital each of the companies have, and is a great way to gauge new opportunities or growth patterns. When you decide to invest in the right small or large cap company, make sure you limit your order. A limit trade limits the amount you’ll pay for the stock or your selling price. If you’re dealing with a share that’s a penny, then even the slightest movement in price before you buy can cost you all your profit or throw you into a loss. Since activity may be low on these stocks, certain individuals can play with the price of the shares and increase their selling price.

In any case, if you’re planning on buying stocks in larger quantities, always make sure to go through a broker. They know the markets and are in charge of handling and selling, so it’s best to work with them to maximize opportunity.

 

Happy Trading!

Penny Stock Rumble

http://www.pennystockrumble.com

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Home Page > Finance > Investing > Penny Stock Picks – Here is the RIGHT Way to Trade Them

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Penny Stock Picks – Here is the RIGHT Way to Trade Them

By: Om Prakash
Posted: May 19, 2010

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There are websites everywhere that make big claims about big gains from penny stock picks.  These penny stock alerts newsletters are often right, but just as often they are wrong.  You’ve got to be careful whenever you’re trading penny stocks, no matter how hot the tip you got seems to be.

Do NOT be a penny stock chaser.  You’ve got to get in ahead of Wall Street if you want to capture the biggest gains from the penny stock picks you receive.  Don’t ever chase the penny stocks, you’ll lose every time.  Whenever you get one of those penny stock alerts emailed to you, you’ve got to take a look at the chart before you decide to buy.  Is the penny stock already up more than 300% in the past week or two?  If so, it has probably already made its move and will likely only go down from where it is.

I used to just jump right in to all the penny stock picks I ever got.  I made a lot of money but I also lost a lot of money.  If I would have been more careful and selective, and only invested in the stocks that weren’t already flying too high, I would have still made a killing but not have taken nearly as many losses.

Read more articles
Penny Stock Picks – Do Penny Stock Alerts Really Work?
Penny Stocks, Best Penny Stock Picks, Top Penny Stock Newsletter
Hot Penny Stock Picks – Good Penny Stock Picks
Hot Penny Stocks – Finding Started in Penny Stocks

Hot penny stocks aren’t always what they seem.  A lot of time buying a hot penny stock makes you a penny stock chaser, someone who buys penny stocks when they’re just about to crash.  LOOK AT THE CHARTS!  You’ll see if the stock is truly the real deal and about to make a huge move upwards, or if it’s all over and the big move has already been made.

You don’t need to be an expert trader or chart reading master.  You just need to know the very basics.  Was this stock 4 cents a week ago and 15 cents now?  Boy that stock has already made an awfully big move.  It may be poised to fall, even if you receive a penny stock alert in your email that says the opposite.  Sometimes the penny stock newsletters are wrong.  Now sometimes these high flying stocks continue to fly even higher, but the risk is so high in my opinion it’s just not worth it.

So before you jump right in to the penny stock picks you get in your email box, take a look at the chart to make sure you’re entering at a safe point.  Has the stock been trading between 4-6 cents for the last month, AND it’s at 4-6 cents when you receive the pick?  If so, that means you are getting in EARLY…ahead of the crowd.  That means you’re primed to take an awesome ride to profits that often times range from 100-1000% or more.

No newsletter is right 100% of the time, even the ones with the best track records and best intentions get it wrong sometimes so you should always use caution.  I’ve found this one pennystockalerts.com to be the best and most reliable, but still always double check with the chart.  The charts never lie!

Om Prakash – About the Author:

Om Prakash writes about Penny Stock Picks – For more information about penny stocks and hot penny stock picks visit: http://pennystockalerts.com

Source: http://www.articlesbase.com/investing-articles/penny-stock-picks-here-is-the-right-way-to-trade-them-2405655.html

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Question by pat: I need Penny Stock advice and Tips, How to buy and trade. Do you need a broker?
I am seeking good sound Penny Stock advice, web sites, chat rooms. tips, Can we buy stock with out a broker ?
Hot Penny Stock tips………….I have studied R.U.N.U.pk :Rudy: energy drink……..but being new to this kind of investing I am seeking all and any help I can get. You can contact me directly at skytech42@yahoo.com
Thank You & God Bless !

Best answer:

Answer by brckr1
You need a broker to buy stock, but you can trade online, you need an online investment account which can be set up by your bank. Do your own research which involves picking the brains of the experienced traders. Energy stocks, oil and alternative forms, wind, solar etc should do well… but remember that stocks are very legalized gambling and you could gain or lose alot. check out GRGR.PK

Give your answer to this question below!

PerfectPennyStocks.com Issues Technical Trade Alerts on Market Movers Today: FAS, GE, PFE, MNI, GRO, PLD

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Today’s focused alerts include: General Electric Co. (NYSE: GE), Financial Bull 3X (NYSEArca: FAS), Pfizer Inc. (NYSE: PFE), Mcclatchy Co. Holdings (NYSE: MNI), Agria Corp. (NYSE: GRO) & ProLogis (NYSE: PLD).

PerfectPennyStocks.com alerts its members daily on stocks that are hot in the market. These include stocks with huge volume, penny stocks that are moving to the upside quickly, and companies with news. Our alerts are well known for producing incredible results in a short amount of time. We encourage investors to join our FREE e-mail alerts by visiting: http://www.PerfectPennyStocks.com

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PerfectPennyStocks.com is a leading stock web site that provides free alerts on stocks that are making big gains. PerfectPennyStocks.com also tracks small cap, penny stocks that we believe are on the brink of a massive upside. To feature a company on our web site please contact us at staff(at)PerfectPennyStocks.com

PerfectPennyStocks.com is an independent electronic publication that provides information on selected publicly traded companies. PennyStockProfessor.com is not a registered investment advisor or broker-dealer. PerfectPennyStocks.com’s affiliates, officers, directors and employees may buy and sell additional shares in any company mentioned herein and may profit in the event those shares rise in value. Please do your own Due Diligence before investing in any of the stocks mentioned above.

Dave LaForte of PerfectPennyStocks.com is a member of the National Association of Securities Dealers, CRD number 2068915.

SOURCE PerfectPennyStocks.com

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Penny stocks could be good picks for those who are looking to invest in a low price stock with best returns. However, before you plan to make investment into penny stocks, you need to have adequate background information related to the market history of the stock they are planning to purchase. You should also gather information related to companies financial performance and quality of the top management. Along with which other useful information is required such as company’s future investment and business plan.

However, those Penny Stocks which are traded only on the pick sheets and over the counter bulleting board (OTCBB) are difficult to track because available details are usually sketchy. Moreover, OTCBBs are not bound by any law to provide key related to their operation and performance. Instead, investors can find important and useful information through alternate sources such as newsletters which are regularly published by penny stock brokers, penny stock network and the various websites which monitor trading of penny stocks. Several of these websites carry a sizable listing of recommended picks on a daily basis.

Brokers who specialize in penny stock trading also maintain their own databases on historical market trends, especially in those stocks which are actively traded. They also keep a close watch on unveiling of significant market and business investment plans. The newsletters offered by these penny stock websites carry analysis of the possible market trends in penny stocks along with other details like special focus on select stocks. Buy and sell recommendations supported by hints at possible triggers are also published in such newsletters. Therefore you must subscribe to such newsletter for best gains in penny stock trading.

Along with this, a growing body of information on web-based networks and blogs can give useful insights into penny market trends. This source of information can be used by investors to check and verify information gathered from other sources. Information provided by these sources will help you to some extent to avoid any likely financial traps that scammers may have laid for gullible investors of penny stocks. For investors it should be their top priority to avoid such traps and it should be their high priority.

Hot Penny Stocks are those shares that trade from .001 of a penny to .00. They are traded in decimals and are much more risky than other investments. However, these hot penny stocks can have tremendous reward potential. Some stocks have gone from 25 cents to .00.

You just need to keep your eyes and ears open to know what’s going on in penny stock markets. Accordingly, you can adjust your penny stock trading strategy.

A free nightly market analysis video provided by the Founder of www.PerfectStockAlert.com Visit our 100% FREE website today!

online broker…

Please provide link…and advice on Penny stock trading if you’d like also!
That’d be …greatt….
Thanks in advance!
-The Blue mushroom.
I have very VERY special reasons.
I’m looking for tools, and, not so much discouraging advice:
“When you want to sell, they will lower the Bid, where you will lose your A##, unless some other person comes in after you. ”
you are correct here, someone WILL come after me, I have VERY SPECIAL reasons to be peddaling penny stocks.

I will be screwing people…and I will be making all the money.

it’s all legal, so don’t get on my back, but it’s taking advantage of weaker people 100%.

I don’t want to explain, and I do not want to give up my process.

I’m a rich jap kid with tons of money and time,

and I’m about to become a millionaire, simply because I feel like it.
Now please, TOOLS?