July 20, 2010 - publisher
Any time you are dealing with assets that see as much movement as penny stocks, it is important to use all possible market order types at your disposal to minimize risk. Unless a trader plans on being in front of their computer or on the phone with their broker all day, it is almost impossible to keep track of the rapid pace of penny stock changes. Even the most experienced and knowledgeable investors cannot say for sure which direction a stock will move in, so various order types are used to take advantage of and protect against unexpected turns in the market.
Limit Orders
This type of order has the broker enter or exit a position at a price you specify. The deal will only happen if that price can be attained. Limit orders let you know in advance the exact number you will buy or sell at, but brokers often charge higher fees than a standard trade so that can affect your bottom line.
Market Orders
These are the standard order that buys or sells the stock right then and there, at whatever the current price is. It is not guaranteed that you will get the price you just saw online or on television, but typically it will be close to that. These orders also typically carry the least amount of fees and transaction costs.
July 7, 2010 - publisher
It should be standard to check out a penny stock’s financials to ensure it is a viable company, but with the volatility of penny stocks, financials are not necessarily a good predictor of price action. This is where technical indicators come in. Technical indicators rely solely on information from the stocks price charts and trends without regarding the underlying company in order to predict the price of the stock. There are some major technical indicators to know that can be used alone or together to confirm or deny a trend you might see forming in a stock’s price.
MACD (Moving Average Convergence-Divergence)
Moving averages plot the average of a past number of days as time goes on, and MACD typically charts the difference between the value of a 12 and 26 day exponential moving average. This difference chart then has a 9 day moving average, or “signal” line, added on top of it, and the way they cross each other signals buy or sell opportunities. When the MACD crosses below the signal line it is a bearish sell signal, and when it crosses above the signal line, it is a buy signal.
June 16, 2010 - publisher
In many ways choosing good penny stocks is a more complex skill than working with large cap stocks on the big exchanges. There is often limited information to work with and there can be uncertainty with certain companies. However, there are certain things that successful traders have learned to look for in a solid penny stock, and those include liquidity, press releases, technical indicators, and other chart techniques.
Liquidity
One issue with the penny stock market is that liquidity is often a challenge. Since there is no formal exchange to trade on, it is difficult to know for sure that there will be a buyer or seller when you see an opportunity to take a position. Check penny stock communities online, talk to other traders, ask your broker or several brokers if there is any buzz about the particular stock. These sources will give you an idea of whether there has been any significant volume of trading for the stock that is likely to continue. Keep in mind that it will often not be the case with these small cap stocks, but when you find a relatively liquid one it is certainly a good sign.
February 16, 2010 - admin
Penny stock trading involves the polar opposites of the trading world; extreme risk couched with substantial profit potential. How do you mitigate your risk exposure and stay on the profit side of the equation? You can start by following these pro tips that subscribers of Penny Trader and OTCPicks.com have used for years:
MANAGE YOUR RISK
Recent events have shown that effective risk management is a trick that not even the largest institutional traders have mastered. The irrational fear of having a losing trade is a phobia that afflicts many penny stock traders. Realistic traders understand that not every trade will be a winner. The key trick is to recognize your losers quickly and cut those stocks loose. Seasoned penny stock traders employ stop-loss systems to minimize their overall risk.
WATCH THE MARKET MAKER
Penny stock traders notoriously spin conspiracy theories relating to the activities of market makers. Many of these theories border on the insane, however, there is a kernel of truth to this line of thinking. Smart penny stock traders watch the price action for telltale signs that the market maker is poised to take the stock one way or the other. The ability to decipher these situations is a trick that can potentially yield obscene profits.
October 6, 2009 - publisher
After weeks of strong signals that it was ready for a surge upwards, Gold finally broke through not only several levels of resistance, but the all-important psychological barrier of $1000 and has soared to a new all-time high of $1,042 per oz.
Since early last year, gold has attacked the $1,000 per oz. price level numerous times, and now has succeeded in breaking through the $1,000 per oz. barrier handily.
Gold today (October 6th) rose to a record on speculation that inflation will accelerate and erode the value of the dollar, boosting the appeal of the precious metal for investors seeking to preserve their wealth.
Gold futures climbed as high as $1,042 an ounce in New York, topping the previous record of $1,033.90 in March 2008. The spot price headed for a ninth straight annual gain, the longest rally since at least 1948. The dollar fell as much as 0.6 percent against a basket of six major currencies.
“Gold has just begun its ascent,” said John Brynjolfsson, the chief investment officer of Armored Wolf LLC, a hedge fund in Aliso Viejo, California. “As central banks print more and more money, the private demand for gold as an investment and inflation hedge is destined to grow. It’s pretty clear that gold will be at $2,000 by 2012, and it could happen a lot faster.” (more…)
