So you opened your eMail today and noticed the headline "TOO HOT TO HANDLE EXPLOSIVE GROWTH PENNY STOCKS TO BUY NOW!". If this joker could had been possibly even more provocative they could had also added something like " So HOTT we had to use two T's".
So you check it out. You check the charts, things look OK. You don't really notice anything terribly out of the ordinary, but you also can't quite see what is so great about this penny stock.
But wait, in this eMail there is also a link to a forum so you go there and check it out as well. You see people chanting and saying that this is the 2nd coming of Christ while other people are scratching their chest and boasting about the millions of shares they managed to snag.
So you see that people are buying a lot of this penny stock and hell even some of these people are making sense in what they are saying. So you can't contain yourself any longer and log into your trading platform and place the order.
You might even call up some buddies or send a flurry of eMails yourself to your trading friends. You probably aren't alone, probably some other people are doing the same exact thing that received the eMail that you read as well.
So you finally get around to jumping in bed for the evening and to top this day off you are now having difficulty even getting to sleep because you can't wait to wake up in the morning so that you can check on the status of the stock.
You wake up the next day and nothing out of the ordinary is going on. Suddenly you realize what happened yesterday. You have this terrible uneasy notion in your stomach yet you're experiencing anxiousness and stumble around until you manage your way to the computer desk. Hell, you're excited, man. I would be too.
So you log into your trading terminal / platform and low and behold this penny stock has taken a nose dive. You wonder what the hell is going on, and then you begin questioning yourself "Just how many shares DID I BUY?". You realize quickly and you're almost numb as the result.
So the next action you take is to log into the forums and there's a couple people making claims about how they hit it big ... right before the nose dive. You keep reading page to page and then start seeing more and more people complaining about pumping and dumping.
Yea, chances are you just got busted with your pants down. Worst yet, it feels like you went back into the past and your dad was spanking your rear end with a switch that he made YOU go fetch. Oh the glory days. Right? Right.
So hey, be careful out there, don't be a fool when X or Y guru tells you that you just have to get in on this next latest and greatest hot penny stocks to buy.
Hopefully you used money that you could afford to lose regardless of what you want to call penny stocks: small cap stocks, OTC stocks, OTCBB, pink sheets (how many variations do we really need people?).
Wednesday, January 27, 2010
Thursday, January 7, 2010
About Penny Stock Brokers
A good broker can mean the difference between profit and being in the red. And this is something that all penny stock brokers want you to believe. And funny enough, or not, it is true.
While not all people require such a level of support as more sophisticated stock traders, penny stocks or pink sheets or not, having solid support from a reliable broker really can make a difference from being in the red or the black. Especially when the power goes out and you forgot to hook up the generator, or didn't have one to begin with. Hopefully if you have a UPS power system for your computer that is at least working for you.
In any event, the common givens are to go for low commissions, or as a baseline a good commission structure. You and I should not be concerned about how much money the broker is trying to rake in for themselves, we're the people who are trying to make money. If you notice a brokerage using questionable tactics with your account it's probably time to move on if they are not giving you a good reason to any inquiry you ask of them.
This is not to say that all Penny Stock Brokers are crooks, in fact the majority of them are not and they would probably be the first to laugh at the notion. But it does not hurt going with a brokerage firm that has retail offices and good support. You may never know when you need to pick up the phone and it's a nice thing to have a human on the other end to help you when you really need it.
So if you can somehow combine good support, low commissions, preferably no non-activity fees, and a good platform to trade from you are going to be in pretty good shape.
While not all people require such a level of support as more sophisticated stock traders, penny stocks or pink sheets or not, having solid support from a reliable broker really can make a difference from being in the red or the black. Especially when the power goes out and you forgot to hook up the generator, or didn't have one to begin with. Hopefully if you have a UPS power system for your computer that is at least working for you.
In any event, the common givens are to go for low commissions, or as a baseline a good commission structure. You and I should not be concerned about how much money the broker is trying to rake in for themselves, we're the people who are trying to make money. If you notice a brokerage using questionable tactics with your account it's probably time to move on if they are not giving you a good reason to any inquiry you ask of them.
This is not to say that all Penny Stock Brokers are crooks, in fact the majority of them are not and they would probably be the first to laugh at the notion. But it does not hurt going with a brokerage firm that has retail offices and good support. You may never know when you need to pick up the phone and it's a nice thing to have a human on the other end to help you when you really need it.
So if you can somehow combine good support, low commissions, preferably no non-activity fees, and a good platform to trade from you are going to be in pretty good shape.
Finding a List of Penny Stocks
You can find a list of penny stocks with the wealth of information spread across the Internet. You can go through companies that specialize in this very thing, or you can go with word of mouth information on message board forums.
What I usually do is go visit the popular penny stock forums and I can usually get lists from there. I will go around and get multiple lists sometime and then compile my own custom list according to my criteria. If I am not interested in particular industries I simply pull out those companies that I am not always paying so much attention towards.
I also greatly enjoy assembling my List of Penny Stocks with companies that have repetitive share price patterns that I may be able to easily buy and sell or vice versa without having to hold onto the stock shares for too long. I just want to make money. I am not in love with these companies. I want to get in and get out.
There are times when a company might release news that is highly attractive to me, and if I hold that stock I may keep a hold on it to see where the future may lead to. Sometimes this works out, sometimes it does not. But if it does the bonus from holding out could be dramatic. Usually if it's a bust you are not out too much, unless you bought a whole lot of shares at a higher price.
What I usually do is go visit the popular penny stock forums and I can usually get lists from there. I will go around and get multiple lists sometime and then compile my own custom list according to my criteria. If I am not interested in particular industries I simply pull out those companies that I am not always paying so much attention towards.
I also greatly enjoy assembling my List of Penny Stocks with companies that have repetitive share price patterns that I may be able to easily buy and sell or vice versa without having to hold onto the stock shares for too long. I just want to make money. I am not in love with these companies. I want to get in and get out.
There are times when a company might release news that is highly attractive to me, and if I hold that stock I may keep a hold on it to see where the future may lead to. Sometimes this works out, sometimes it does not. But if it does the bonus from holding out could be dramatic. Usually if it's a bust you are not out too much, unless you bought a whole lot of shares at a higher price.
Ever wondered which penny stocks to watch?
A lot boils down to how you trade. Some people prefer to locate penny stocks to watch that they can get in on quickly and get back out of with profit as fast as they can. This is not to say it is the best way to set out your trading pattern, but if it works don't break it and try to fix it.
You can use a stock screen to locate the penny stocks that meet the criteria you input into the software. There are free stock screens around, or you can pay extra money for a more sophisticated one.
Personally I like to find stocks that have predictable price pattern movements. If you do things right if you can predict the stock price movement you can buy or sell all week long making some good money from it. This is bit of a technical analysis aspect of trading though, fundamentals at the end of the day still reign supreme of course.
But if you're just locating Penny Stocks to Watch the Internet is a wealth of information. I would stray from people telling you this is the greatest stock in the world or about to, do your own independent research to confirm any suspicions that you may have and you'll do a lot better in the long run.
You can use a stock screen to locate the penny stocks that meet the criteria you input into the software. There are free stock screens around, or you can pay extra money for a more sophisticated one.
Personally I like to find stocks that have predictable price pattern movements. If you do things right if you can predict the stock price movement you can buy or sell all week long making some good money from it. This is bit of a technical analysis aspect of trading though, fundamentals at the end of the day still reign supreme of course.
But if you're just locating Penny Stocks to Watch the Internet is a wealth of information. I would stray from people telling you this is the greatest stock in the world or about to, do your own independent research to confirm any suspicions that you may have and you'll do a lot better in the long run.
Looking for penny stocks to buy are ya?
If you are looking for penny stocks to buy that are going to bring in some money then you might want to first begin thinking how you are going to go about this.
We begin with thinking either long term gain or short term gain. Or, just simply get in and out as fast as possible and sell our shares.
Penny stocks can make you a fortune if you are lucky, or you can be devastated with losses on your initial investment if you are not careful.
When looking for any penny stocks otherwise called pink sheets you should really do above and beyond research on the company especially if you are looking for long term gains.
There is a lot of excitement involved when purchasing shares in a company that doubles its share value over night, and when we're talking about penny stocks this can be gigantic gains because some people even buy millions of shares. Just a small fraction of an increase in share price can bring around tremendous gains.
Either way when looking for Penny Stocks to Buy you need to go in with a plan and execute the plan. You need discipline and don't buy stocks on hunches or because someone in your eMail or a message board forum told you to do so. Also, common sense can go a long, long ways to keeping your financial statistics black and out of the red.
We begin with thinking either long term gain or short term gain. Or, just simply get in and out as fast as possible and sell our shares.
Penny stocks can make you a fortune if you are lucky, or you can be devastated with losses on your initial investment if you are not careful.
When looking for any penny stocks otherwise called pink sheets you should really do above and beyond research on the company especially if you are looking for long term gains.
There is a lot of excitement involved when purchasing shares in a company that doubles its share value over night, and when we're talking about penny stocks this can be gigantic gains because some people even buy millions of shares. Just a small fraction of an increase in share price can bring around tremendous gains.
Either way when looking for Penny Stocks to Buy you need to go in with a plan and execute the plan. You need discipline and don't buy stocks on hunches or because someone in your eMail or a message board forum told you to do so. Also, common sense can go a long, long ways to keeping your financial statistics black and out of the red.
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