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You needed a broker to help you understand what you were spending your money and their time doing.

Brokers used to hate screening. Why? Well brokers only get pair commissions when they actually sell your stocks. For that matter they only get good commissions when they sell your stocks for a good price. So when a broker spends hours reading old annual reports and screening the current rates, they might spend all their time doing research and very little time making money. SO the general rule of thumb was to act on the industry and the way it is flowing and on their gut.

Now, because of the Internet there is a better and easier way. Online screening programs and website can give you the heads up by doing all the research for you and your trader. Online screening has given us all the ability to find out what the market is doing and what you, the investor, should be doing. Online screening programs and websites don't replace the need for a broker, but they do free up some time so that you or your broker can do more selling than reading.

Online screeners cut off hundreds of man hours and give you the ability to quickly search for the information your need. Literally all it takes is a few seconds, like a basic Internet search. You will generally need to identify stocks that meet certain criteria and screening will do that in a search type function. You can also screening with qualifiers like industry type, market cap, sales, dividends, and so forth. Generally the better the screener the more qualifiers you will have.

So you have you screening sorted? So now you need to get started with a market that your comfortable with. How about the penny stocks?

Penny stocks are stocks that are price extremely low, that offer small players the opportunity to get into the game without huge outputs. While Penny stocks look like a non risky game, the truth is if you have a lot of penny stocks it is very risky.

Because of the high risks and alluring prices of penny stocks traders should be mindful of a few things;

• Traders should spend some time investigating the current ownership distribution.

• Be careful of illegitimate stocks - do your research and make sure that you are spending your pennies in the right place.

• Take a look at the companies history - there could be a good reason why the stocks are placed so low.

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