Characteristics of The Markets Best Penny Stocks

By James Brumley

Finding great penny stocks isnt rocket science, especially with the number of websites that explain how to spot and trade them. If you want to handpick your stocks, use all of your available resources.

Trading penny stocks on your own can be risky even with direction from online resources. Any top trader will tell you in order to be as profitable as possible, you have to go beyond looking for solid companies and using technical analysis to enter and exit trades.

Here are four higher-level concepts to help you screen out the mediocre or low-odds penny stock trades you might have otherwise taken.

Determine Who Owns the Lions Share of the Company

Not that this is guaranteed to prevent a stock from collapsing, but management of a company can be highly motivated when theyre also significant investors of their company. If instead theyre selling some or all of their stock (without a clear reason), it may be a stock other investors should avoid. After all, insiders are more familiar with a company than any ordinary investor could be.

Most publicly-traded companies are required to report their management teams beneficial ownership " or changes in ownership - in any of that companys stock. This is typically disclosed in an 8K and/or a Form 4 filed with the SEC.

Consistent PR Effort " Does the company at least realize their stocks price is as much a result of publicity and presence as it is about fiscal success? This is especially true of penny stocks.

This isnt to imply an organization needs to post a news release every single day to garner constant attention. However, a company can only excite potential buyers by letting them know whats going on. And, it cant be a one-time event.

Volume Matters " If a penny stock you buy doesnt have a steady volume of buyers, you may not be able to exit the position at a reasonable price.

You never know what the volume on a penny stock will be day-to-day. It matters a whole lot, though, when you try to take profits off the table.

That said, high-volume breakouts are how new uptrends start, and dont necessarily need to be avoided. Quite the contrary, actually. A penny stock doesnt have to maintain volume levels seen during a breakout effort just to be considered liquid; the pre-surge volume just has to be respectable.

If you buy a penny stock without doing a little research, you just might find yourself on the losing end of a loser company. It may have been started on a whim, without a plan for growth, or a long-term patent may be close to expiring.

Most penny stocks are going to be of young, growth-stage companies, so a trader shouldnt expect a textbook example of a perfect investment. On the other hand, a company should be able to demonstrate that it will sooner than later bring a product to the market or turn a profit. (The same is also true with penny stocks of older, established companies though.)

Likewise, more than half of all stocks trade at a value under their IPO price within twelve months after their public offering sale. Thats not a problem for a true long-term investor, but it can make things challenging for a penny stock trader who wants to get in early shortly after an IPO. It can take a while for a new stock to settle in and start trading predictably.

You shouldnt buy a penny stock if it has little or no history of trading. That just spells trouble.

With these four concepts, you can begin trading penny stock right now.

By accentuating your solid trading discipline with the above four elements, youll be capable of making vast improvement in your results and bottom line.

The SmallCapNetwork.com site offers additional trading advice and specific stock picks using the criteria mentioned above. The easiest and fastest way to access the sites comments is by subscribing to the complementary newsletter. - 23218

About the Author:

James Brumley is an expert on Penny Stocks with over 10 years of covering and identifying undervalued Penny Stocks. In order to receive Jamey Brumley's ideas on which stocks to buy or avoid in the penny stock space, sign up for his free newsletter located at SmallCapNetwork.com

Automated Forex Trading Software - What You Need to Know Before Using It

By Brian Bodine

The automated Forex trading software is designed to give assistance to stock market traders in the conduct of their business. This is based on the fact that conducting business in the stock market is a tricky, not to mention a risky matter.

However, you do not just go to a supplier and purchase whatever software you find. This is not some computer gadget that you simply buy and install. There are matters you should consider before you buy that program, as well as matters you have to accept.

Let us face it, no matter how wonderful the program may sound, it just is not perfect. There is no such thing as a fully efficient program that will do your job for you. At best, automated Forex trading software should serve as guides for a potential stock trader. It should not be your bread and butter, so to speak, because entrusting your entire financial future on application-based decisions is a very bad idea.

Before you use automated Forex trading software, consider first trying out a demo version. This way, you learn the curves of business in the stock market without the pressures of having to use real money. The advantage of this move cannot be emphasized further. You get to learn how to trade without the risk of losing money.

Choose reputable and reliable products. You can do this by asking for advice from veteran traders and from those who have actually used the product. Do not rely on advertisements saying that you will realize a huge return of investment by just sitting around and letting it do all the work. Advertisements are meant to give you heaven and earth just so you would make a purchase. Learn from the experience of others before you make a choice.

You must develop your skills as well. Of course, you also have to learn how to trade without assistance. This way, you become surer of the decisions you make based on the recommendations. You have to use common sense and your personal instincts before making a move. Even trading robots make mistakes, and if your own robot makes one, a lot of money is usually lost.

You will also need a reliable Internet connection. Automated Forex trading software applications do not pull their data from the air. They must be constantly supported by sources found on the Internet. This means that you will have to invest in being online as well. And not just any connection will work best for broadband is usually recommended.

Human input is still better than blind reliance. Make sure that you only use automated Forex trading software as a guide, not as a master. - 23218

About the Author:

I found an awesome Forex Software that helps you make trades. It is Automated Forex trading on Forex Signals while you are sleeping.

Forex Fundamental & Technical Analysis Basics for Your Trading Success

By John Eather

The examination of the political sphere, economics, asset markets is the part of Fundamental analysis when it's employed to evaluate one currency against another currency. The Fundamental analysis exercises the pressure of government policies and this causes the demand and supply up to the demands of an economy. Therefore, no single thought, or band of thoughts, determines the Forex fundamental analysis.

Nevertheless, fundamental analysis, most of them anyway, use macroeconomic indicators including prime interest rates, economics, inflation, unemployment fluctuations. Consider for a moment, the contribution of Forex fundamental factors which take a hand in the influence of currency movements.

Let's consider the economic indicators. The reports are issued by private or governments with details of a country's performance economically. The indices on the economics are issued annually, every quarter or even every month and are intermeshed around particular economic information. 2 basic factors are rates of interest and trade internationally. Additional factors are consumer durables orders, Consumer pricing Index (CPI), Purchasing Managers Index (PMI) and Producer Price Index (PPI).

The currency interest rates are essentially an economic function of every country. When a nation interest rates rise, normally, the currency of that nation will beef up versus a different nations currency. Even so, climbing interest rates, for stock exchanges is bad news. It's a reality a lot of investors move out investments from a land wherever the rates have climbed.

A crucial factor, of course, is the International Trade. The balance of trade bespeaks the difference of exports and imports. A deficit is possibly an economic calamity for a countries currency and it's politics. A deficit could come along when a country is exporting less than importing and implicates less money is coming in than is going out of that country. Entirely looked at, a deficit may be a beneficial issue and only damaging when the deficit is greater than predictions in the market, which may start adverse price movements.

A great deviation from forex technical drives past fundamental and is practised only to price action and forex technical analysis comprises of an diversity of forex technical disciplines. All one utilised to find the market direction. Technical analysis correlates the motions and consequences of prevailing markets and currency outlooks are short-run. Data acquired on a trading day determines the interest in the markets and informs forex traders of a bull market. The Forex technical analysis checks movement trends and brings about far-flung "trend is your friend" a phrase amongst Forex traders. The linchpin for maintaining a effective profit level is the selling and buying at the correct time and acknowledging when it is safe to enter or exit a position.

The primary principals of Forex technical is support and resistance which are the steering points for a chart to describe repeating ups and down pressure levels. Support level is found at the low end while the resistance level is a high point. Buying and selling is the strategy used by many old hand traders during the resistance levels,

History frequently repeats itself and generally in the circumstance of price movements is a maxim of the technical analysis. The repetitive nature of price movements is oftentimes granted to the Forex marke psychology. Traders have a response to related inputs of the market in special periods of time. The technical analysis applies formulas to break down Forex movements within the market and translates the trends too.

In spite of this, numerous graphs have been and still are used nowadays and they still are considered genuinely relevant as they represent the price movement patterns often repeated. This should give you an approximation of the Fundamental and Technical Analysis and should be good for you once you are willing to commence your calling as an investor. Remember - never invest any money you have got or can't risk to throw down the drain. - 23218

About the Author:

For additional useful information on Online Forex Trading be certain you check out the following site MoneyearningFxTrader.com and start earning money.

Stock Trading Strategies Reviewed-Decision Bar Trading

By Steve Polk

Decision Bar Trader is my favorite method of trading, and I have used it personally. Decision Bar was created by a real trader Les Schwartz who many of the the so called guru's call on for help.

The Decision Bar Trader created by Les Schwartz is a very simple to use yet highly effective piece of software for trading just about every kind of market. Raw beginners can use the Decision Bar Trader and become successful in short order.

Since he began trading in 1988 Les discovered that the price of a stock, or whatever instrument you are is the deciding factor. It's a simple fact that you make money is when you buy low and sell higher, or the opposite if you are a short seller. Les designed his Decision Bar Trader to make use of the natural buy and sell spots that occur frequently in every instrument you might trade.

The Decision Bar Trader is so simple in its trading decisions you may try to go off track at times and do your own thing. However, if you stick to the system and follow the software as Les instructs, you have a great chance of making money. The Decision Bar Trader works for day trading, swing trading, and trades lasting for longer time periods. It is also highly effective for option traders.

Because Decision Bar Trader is such a "snap" to learn, you will be able to use the system the same day you receive it in the mail.

Decision Bar Trader comes with a 30 day no questions asked refund of your money if you are not satisfied. It does not matter what market you trade, as Decision Bar Trader works with stocks, forex, or the futures market.

As a review, Decision Bar Trader is effective for short term traders, long term traders, and even those of you that trade options.

One thing that you need to be aware of is that Decision Bar Trader requires that you use a live data source if you plan on day trading. Les advises traders to use real time data even if you are a longer term trader. Of course the final decision is yours. You are given sources of real time data that offer a free 30 trail so you can check out the system.

Decision Bar Trader is not some black box method of trading, and it does require you do put some thought into each trade you take. This becomes quite simple though as you start to understand how the system operates.

There is a low monthly fee associated with the system, however it's well worth it if you are a somewhat active trader. Bottom Line:

You really have nothing to lose by giving Decision Bar Trader a try because on the month long, no cost trial. Paper trade and see for yourself. Les Schwartz and Decision Bar trader are the cream of the crop in the sea of market gurus. - 23218

About the Author:

go to http://decisionbartradingreview.blogspot.com/ to claim your no cost 30 day trial to Decision Bar Trader. For a more in depth review you may go to http://ezinearticles.com/?Review-Of-Decision-Bar-Trader&id=772282.

Fx Market Trading And how It Works

By Ron George

Forex market buying and selling is trading money or currencies globally. There are not that many nations in the world that aren't involved in the fx market where they trade money based on the current worth of that currency. As some currencies are not valued much, those currencies will not be traded in heavily as the currency is worth more, extra dealers and bankers are going to choose to invest in that market at that time.

Trading on the FX market takes place daily and it involves moving over two trillion dollars each day which is a lot of money. Consider how many millions it takes to make a trillion and now think about the fact that this is done everyday. If you are looking to gt involved in a market where the money is, the foreign exchange market is the setting where money is exchanging hands each day.

The money that is traded on the fx markets are going to be those from many countries worldwide. Each currency has it's own three-letter symbol which signifies the country and the currency that is being traded. For example and just to name a few different currencies the British pound is GBP and the Japense yen is JPY and the United States dollar is USD and the Euro is EUR and Australia is AUD.

You are able to trade within multiple currencies each day or you can trade to a different currency every day. The majority of the trades are going to be handled by a stock broker, or a company will require a fee before making too many trades you want to be sure of the trades you are making which will involve additional fees.

There are trades taking place between countries and markets every day most of the heavy trading takes place between the US dollar (USD) and the Japanese yen (JPY), the Euro and the US dollar The trading takes place all day, all night, and throughout various markets.

At the same time one country is opening trading for the day another country is closing trading for that day which means worldwide time zones impact how the forex trading will take place and at what time the markets open for trading.

When you are making a transaction from one market to another, moving from one currency to another your transactions will be explained by symbols.

All transactions are going to havesomething like this JPYzzz/USDzzz being the percentage of trading for the percentage of transactions which are shown by the three z's. Other trades you have done could look like AUSzzz/USD being Australian Dollar and the US Dollar and so on. When you review and read your Forex statement and online information you will understand it all much better just learn the symbols that represent the currency that you are trading. - 23218

About the Author:

Day trading Robots is a website for those wanting to understand Basic Of Foreign Exchange Markets. With numerous articles on the topic and a comprehensive e-course on trading the stock market you need to check out the Day Trading Program and grab your free reports.