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5 Tips for Investing in Penny Stocks

Investing in penny stocks provides traders with the opportunity to dramatically increase their profits, however, it also provides an equal opportunity to lose your trading capital quickly. These 5 tips will help you lower the risk of one of the riskiest investment vehicles.

1. Penny Stocks are a penny for a reason.
While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker’s money for an IPO. This doesn’t make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.

2. Trading Volumes
Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn’t trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding “dead money”, where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.
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Exchange Traded Funds: Why You Should Never Buy a Mutual Fund Again

Copyright 2006 Equitrend, Inc.

Many investors still don’t know about Exchange Traded Funds (or ETFs) and their advantages over traditional mutual funds.  In this article, we’ll examine Exchange Traded Funds, their history, performance and advantages and why you should never buy a mutual fund again.

ETF 101

Exchange Traded Funds can most accurately be described as the happy marriage of a stock with a mutual fund.

Like mutual funds, when an investor buys an ETF, he is buying a pool of securities at one time.  For instance, an ETF known as DIA, or “Diamonds.” allows the investor to take a position in the Dow Jones Industrial Average.

Like a stock, an ETF can be purchased through a brokerage account, can be traded throughout the day, can be bought on margin and offers stock-like trading features such as limit orders, stop orders and short selling

ETFs come in many different flavors.  They track all the major indexes like the Dow, S&P 500, NASDAQ 100, Russell 2000 and others.  They’re also available for investors who want to trade sectors like energy, technology, precious metals, financial, health care, emerging markets, interest rates and many more.
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$300 + 10 Minutes a Day = $30,000?!?

We all know the saying, “work smarter, not harder”, but could it actually be possible to work THAT much smarter? Working only minutes a day and replacing, Exceeding your current Income? Don’t worry, Its perfectly legal and people are doing it right this very second around the world!

Its FOREX Trading, and what you don’t know, could be costing thousands of dollars.

Forex stands for Foreign Currency Exchange Market, commonly referred to as FOREX, FX, and 4X. You may be familiar with the stock market, but there are a few reasons Currency Trading can blow Stock Trading right out of the water!

There are 3 Major reasons why Currency Trading can out preform the stock market any day!

There Is a Very low Investment of only $300 dollars needed to start. This is a lower investment when compared to the investment you would make with stocks, futures, or day trading. Of course you can start with something more than $300, but just start where you are, whatever that is and it will grow.

Forex is the most liquid market in the world so it offers a leverage of up to 100:1. The Stock Market offers 1:1 and and Futures 15:1. This gives your money awesome room to grow and gain even more leverage!

The Forex Market Open 24 hours a day and has a trading volume of almost 2 Trillion dollars a day. This makes the market trend well and technical analysis works pretty well too. You can focus your attention and analysis on one or two pairs of currency instead of the 40,000+ stocks in the Stock Market.

The Forex market is open 24 hours, can be accessed anywhere in the world with an internet connection, and can be the ultimate tool for building wealth. Make money working 10 minutes a day, or a few hours a day. Work day or night, and make money while the market is up or down. The Forex is flexible and can fit around anyones schedule!

Not sure you want to risk that $300? Gain the experience you need by playing around with a free demo account, then when you feel ready open your first account and start building your wealth! What do you have to lose ?
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Greed And Fear

Greed and fear are the major players in the stock market. These two emotions are the
driving force behind almost all market participants – Institutional mangers, stockbrokers,
Investors, traders and yourself.

You might be saying to yourself that greed and fear will never get in the way of my trading,
but believe it or not they will be. It is not something to be ashamed of. It is something you
have to admit to, come face to face with, If you are to become a successful stock trader or
investor.

What do greed and fear look like in the stock market trading arena?

You have been watching a particular stock for some time now. It has set up perfectly, so you pull the trigger. You bought it at the perfect price and now it is moving higher just as you thought it would.

Now greed steps up to the plate and says to you, this is going to be a rocket ship. So you buy some more shares. Or your stock moves a few points and goes passed the price that you decided to get out. Greed tells you this baby is going higher tomorrow so you hang on.
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