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Penny Stocks can make you a lot of money over a short period of time. This is why we love them right? However, these stocks are sometimes referred to as "risky". This is understandable because many people invest without putting much effort into research and then they end up losing money. Everyone wants to be successful and no one wants to lose money. So what is everyones main goal? To find top penny stock picks! People want to become rich overnight and your not going to do this unless you invest your money in the right stock, right?

So how are we going to find top penny stock picks? RESEARCH, research and um some more research. Research is the key to being successful in penny stocks. Penny Stock trading is a day to day thing, and if you don't properly research the market, then you aren't going to make a dime. You need to know when to buy, how long to let the stock rise, then when to sell. All of this can be possible with research.

To find top penny stock picks you can look at trends in the stock market. Trends are patterns in a stocks history and from these you can tell what the stock is going to do. Maybe you are new to penny stock and don't know where to start your research. There a few useful resources you can use to help in your stock picking researching. Let me recommend subscribing to a penny stock newsletter.

By Josh Lewis


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In financial terms there can be little doubt that the year of 2008 will be remembered as somewhere between a total disaster and a train crash!. If you have made money from investing in shares you are either very clever, very lucky or simply not telling your colleagues the truth. Nevertheless, it is an event will not forget for many years to come.

In my previous articles I have mentioned the importance of the US bail out on the wider economy and that such a process is now being repeated not only in Europe but now in Asia. Despite this reactive (but somewhat proactive) stance by many governments, this has not prevented further fiancially uncertainty. Stocks across the world have since fallen at various degrees.

Nevertheless, as numerous financial commentators have indicated this bail out action has pumped cash into the short-term credit markets to provide much needed liquidity. Furthermore, many governments in Europe and the US and even Australia have announced Government guarantees for bank depsits. This latter action, promoted to provide some security for bank deposits, has inadvertently led to many people withdrawing funds out of many unprotected investments to the banks. This has led to the freezing of investment funds. Investing seems to be a tough game at the moment. Even some of the best peforming funds over the past 12 months have been frozen.

It is difficult to accurately estimate or even guess whether the market will rise or fall within the next day of trade. I regularly research the business sections of the print media as well as watch numerous financial market updates on television and it seems every time that someone hints at a rally, the next day the same commentator is reporting a fall.

The current worldwide financial stress will be followed by greater regulatory control and most likely tighter lending standards to reduced the likelihood a repeat of the sub prime crisis of 2007. Whilst the recent media reports has indicated that global economic growth would slow to 3% in 2009 I believe that this could be ambitious considering that we are nearing the end of 2008 and the market is very volatile. This volatility is leading to many companies reducing their capital expenditure for 2009. This will in turn lead to less expenditure and production by companies providing these goods and services.

The Importance of the US Election

Without showing my preference too easily I predict that should Barack Obama be victorous in the first week of November, then their will be a rise in confidence within both the United States and much of the western world.

Whilst Senator Obama will have a massive task in his first few months of office, I believe that his calming demeanour may transpire to re-fill some of the American self esteem. This could lead to a rise in consumer confidence that there will a ‘changing of the guard’. However, it will be a daunting task to take over the worlds’ largest economy when it is at its weakest for several decades. The choice of several key positions within an Obama or McCain administration will be a crucial decision for the new President.

Obama’s key message has been Change. Whilst this “Change” message initially focused on foreign policy issues such as the conflict in Iraq the campaign now seems to be angled towards reviving Americas economic fortunes. I suspect this Change will involve greater regulation and likely greater certainty. I suspect if Obama’s new team even announce such measures post election but pre-inauguration, a steadying but not profound effect on the markets will occur.

One interesting aspect of a new US Administration will be economic flow-on effects to the advanced Western economies or even the developing economies such as China and India which are currently experiencing a slowdown. This matter could be crucial in determining the length of the global downturn.

John McCain, whilst a strong character has tended to look a little unsure of the economic way forward I suspect this unsureness will be transpired into the market post election day. Nonetheless, McCain has a great habit of proving people wrong and if elected next week you can be safely assured that the former POW will prove many wrong in Wall Street. However, I do not think he has the calming effect of the man from Chicago.

Many investor eyes will be keenly watching the results of November 4 as well as the immediate weeks beyond the election. The new President and their economic teams will have much work to do to steady the markets and show the world the market is safe again.

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It was John Keynes, the influential British economist, who once said 'the market can stay irrational longer than you can stay solvent', and it's an observation that is equally true in the present day. So what does this phrase actually mean?

Well in stock market terms it basically refers to the fact that the markets are not always rational and therefore there are times when the market undervalues companies and overvalues companies. It is for this reason that you are sometimes able to pick up bargains on the stock market and sell short companies that are clearly overvalued. You will often find that in bear markets nearly all companies will see falls in their share prices, even top quality profit-enhancing companies which creates good opportunities to pick up some bargains.

However what John Keynes was saying was that these irrational markets, which do not accurately reflect the true values of companies, can stay irrational for long periods of time. Whilst value will usually win out eventually, in the shorter term they could fall even further in a bear market and vice versa in a bull market.

Therefore if you are looking for short-term profits by finding undervalued companies to invest in in a bear market, or overvalued shorting candidates in a bull market, you may well lose money if the markets stay irrational in the foreseeable future.

In this day and age when there are lots of short-term methods of trading such as spread-betting and options trading this idea that the markets can stay irrational longer than you can stay solvent is as true now as it's ever been, particularly if you are trading on margin. Therefore if you are a short-term trader looking for contrarian trades in bullish or bearish markets, you have to take steps to protect your capital. This means using tight stop losses and either taking your profits while they are there or letting your winning trades run.

If you are an investor this isn't so much an issue. However you should still invest wisely. In this current climate there are a lot of bargains out there but it's important that you take a long-term view of the markets and only invest in quality companies that ideally pay dividends and are well placed to grow their profits in the coming years. You don't need to throw your money into the markets either. A better approach is to drip-feed your money into these quality companies when the opportunity presents itself.

The point is though that the market can indeed stay irrational longer than you can stay solvent and you should always bear this in mind when investing in shares, and certainly if you are trading on a short-term basis using leverage.

By James Woolley


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It is very tempting to move your stops down during times of panic. It becomes even harder when you believe the market is overreacting to bad news. But holding your ground is absolutely critical when trading.

When you buy a stock you need to have a stop level. This is a level that is the most you are willing to lose on that one trade. It is the point where you say if the stock reaches this level I am pulling the plug and getting out with my losses.

Following through with that level is very important. Only by managing your risk and cutting your losses short can you be able to last in the stock market. If you only lose 2-5% of your account on 1 trade it will not affect you too much. You will still be able to come back without too much difficulty.

Ok, but stocks pull back and recover right? This type of thinking is what causes new investors to stay in a trade too long and watch their accounts go down. The fact is stocks can fall for a while. Strong stocks normally don't just fall for 10 or 20% before they start to turn around.

Many stocks can fall 50%, 60%, or more before they start to turn around. And some stocks might never turn around. The last thing you want to do is hold a stock through a 50% decline.

On the other hand if you do not move your stop level lower you can exit the trade for a smaller loss and can look for better opportunity elsewhere. There is always opportunity to make money in the stock market so holding your stock through a 50% decline can be useless.

Remember the stock market is a battle field, holding your ground when it comes to following your rules is a must.

By Shaun Rosenberg


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Penny Stocks have the potential to make you great sums of money over a short period of time. In this article I will show you how you can start trading penny stocks online. Penny Stocks are a great way to make money fast in the stock market. However, Penny Stocks require special attention and must be closely monitored. They aren't like traditional stocks where you buy them then let them sit. You must be involved and ready to make trades.

* Set Up an Account on a online brokerage website. Some of the best trading websites include Ameritrade and E*Trade. Once you sign up on one of these accounts, subscribe to some newsletters or mailing list which are offered by the company.
* Link your Bank Account or open a new bank account for your stock exchanges. I recommend opening a new bank account specifically for trading.
* RESEARCH is key to being successful if you want to trade Penny Stocks Online. Read penny stock newsletters, research forums, be resourceful and figure out which stocks would be smart investments. Ask around, maybe some of your friends or people you know could help you out. Then verify your research. If you are considering investing in a certain stock, then do some more research on that stock. This is your hard earned money you are investing, and you want to be profitable, so spend a lot of time on research.
* Once You Buy the Stock monitor it closely. If the stock makes significant gains, be ready to sell with the slightest sign of a drop. If you trade penny stocks online, make sure you watch your investments. When trading penny stocks online, always be on your toes and ready to trade.

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By Josh Lewis
You can make a lot of money in Penny Stocks, however it can be difficult for some. I will give you some tips and show you how to find hot penny stock. Let me start off by saying that research is the most important thing to consider when you are trying to find profitable stocks. If you do proper research, you will be able to put yourself ahead of 90% of the other investors.

The first step to finding hot penny stocks is to analyze the market and look for trends. Look for stocks that have shown a steady increase over time. Once you found a few stocks that look promising, research each of these individually. Look at the quality of the company. Just by looking into the company you can usually tell if it will be successful or not. All too often, people invest in cheesy companies and then they end up losing money. The fact is you can eliminate your losses just by researching a companies performance.

Research can be a very tedious process. Whether you are new to trading penny stocks, or a professional it is a good idea to subscribe to a penny stock newsletter. These newsletters are packed full of information and will advise you which stocks to consider investing in. If you do subscribe to a newsletter, it is recommended that you still research the stock picks they provide you with.

Once you invest in your hot penny stock always be on alert and ready to trade. If your stock jumps, be ready to sell at the slightest sign of a decrease. If you research thoroughly and closely monitor your stock, you will greatly increase your chances of success.


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This is a major question considering the current state of the stock market. People want to know where to invest. The whole purpose to investing is to make your money work for you, not work against you.

We all want a nest egg for the future so that we can retire with some money, however today the likelihood of this seems almost impossible. Many people are looking at diminished 401ks and the general mood of the market is one of fear.

Of course there is a silver lining to this, that is because the current market conditions provide many opportunities. The one thing to understand is the fundamentals. When the risk is higher the general return on investment is greater. The opposite holds true if the risk is lower. There are also other investments that you can look into, such as government schemes that require investment. These generally yield a fixed rate of return and as a result are far safer to invest in.

Preferred stocks which are similar to bonds also have a fixed return and as a consequence are less risky. There are also government treasury bills which can yield a return over the short term. You could also invest in government bonds. You could also consider CD's which are certificates of Deposits, these come with insurance and for the beginning investor it can be a good place to start.

To conclude, just like any other type of investing, do your homework and make sure you understand what you are getting into. Use all the tools at your disposal such as the internet, articles and press releases.

Stock trading has its own specialized vocabulary but once you have the basics under your belt you can understand better how the market works - more importantly you can work the market to your advantage.

By Benjamin Wise


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Did you know there is a ton of penny stock money out there to be made right now? The opportunity is there especially now. America is in this credit crisis and it is crippling to stock market as we know it. For many people, this is a bad thing. They worry that investments will be bad and money will be lost. What they do not think about is that, just like past crisis, it will come back. When it does, there will be many smart people take take home a lot of that penny stock money!

You see, the whole market is down right now. What better time could there be to invest. There is one thing we know for sure, the stock market is not going to just disappear. It is times like this that great investors are made. The investors that are not afraid and can adapt to the situation will succeed. This is were penny stocks come in. Say a penny stock is at $.25 and during this crisis it has dropped to $.12. Well, when the market gets back up on its feet, that price is going to get close to, if not pass up, $.25. That is over a 100% gain!

Many penny stocks are going to see incredible gain in there price very quickly. This is going to lead to some big penny stock money for many people! So who are you going to be, someone who was afraid of a little risk, or someone who took advantage of the situation and made a lot of money?

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Buy Penny Stocks Online
Penny Stocks, Micro Cap stock, or nano stock are all names given to stocks traded under five dollars. If you are considering investing in Penny Stocks there are a few things you should consider. These stocks have the potential to make you great deals of money in a short period of time, however if you don't know what you are doing you can lose money. So what strategies will ensure success when you buy penny stocks online?

RESEARCH, RESEARCH, RESEARCH. I can't stress this enough and it seems like the majority of people who lose money in penny aren't undertaking this simple task. If you want to buy penny stocks online and are considering investing in a certain company, do your research. Just by researching a company you can usually tell if the stock has the potential to be profitable or not.

Another strategy to consider if you want to buy penny stocks online is to recognize trends in a stocks activity. Trends are price patterns in stocks history and by monitoring stock trends you can predict whether or not the stock will be profitable. Just by analyzing trends you can greatly increase your likelihood of success.

Research can be difficult for any who isn't a day trading expert. Therefore you have a few options that will allow you to gain the necessary information. The first option is to talk to a day trading professional. These professionals usually know what they are doing, and can be of great assistance. They are able to rapidly analyze stocks and give advice on which stocks you should invest in. Personally, I wouldn't recommend hiring one of these people because it can be costly and the results can be far from impressive.

I recommended subscribing to a stock newsletter or using stock trading software. The advantages are that both of these resources give far better research and results than any stock trader pro can. Also that newsletters and software is based on pure research, so you aren't debating on whether to trust their knowledge.

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Mechanical trading systems are definitely common when you talk to professional traders. Mechanical systems are the systems that all new traders should start with.

All new traders should start trading mechanical systems. These are systems that give you exact buy and sell rules. Like you buy a stock when this happens and sell it when that happens. Mechanical systems are made by using technical analysis to back test and papertrading different strategies until you find one that works.

They eliminate the need to make complicated decisions. When you are just starting out you will have to decide when to buy and when to sell a given security.

These decisions can be hard unless you have specific rules for you to follow. They also allow you to be actively trading the market without worrying about volatility.

If you have a mechanical trading system that works in the long run it can help you be confident enough to place a trade. It can also allow you to keep trading even when times seem rough. Having faith in your systems long term performance can help you keep trading even when you are taking loss after loss.

It can also keep you not betting too much when you are on a winning streak. If you are winning trade after trade you may be tempted to raise the amount you are putting into every trade. This could actually backfire.

If you win an average of 50% of the time and you have just made $2,000 by being right on 4 consecutive trades you need to be able to take the next trade like you normally would. Most people after winning 4 consecutive times would feel like they are on a hot streak and go "all in" during their next trade.

But if you know you have wins and losses but overall come out ahead if you bet a steady amount you can overcome this urge to bet a lot. Taking small profits add up in the long run.

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Are you searching for the best undervalued investments and stocks? There are some key indicators available that can show you the best investments that you should get into. If you are looking for true financial peace, then you will need to pay attention to this.

Some of the best undervalued investments that you can get into are penny stocks. You can make a large profit margin when you are trading penny and undervalued stocks. A small increase in the amount of a couple cents or dollars can allow you to double your investment without as much risk.

In addition to penny stocks, you can leverage undervalued stocks that can also be priced significantly less than their value.

You can find out information on penny stocks and undervalued investments through research. There is so much information on the financial statistics of stocks that allow you to track their history for the past ten years. This can provide good data so that you can predict a stock's future based upon its history.

Besides the stock price, you also need to evaluate how much an investment is being actively traded. If it is not being actively traded, then it will be difficult to ensure that the statistical data represents on average what you can expect from that stock.

As you start to get your hand on investing with penny stocks and undervalued stocks, then you will develop more skill and confidence in your ability to select them. You will not regret the time and energy that you will spend achieving this.

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Selling options during a volatile market has many advantages. It combines a higher probability with a high rate of return.

There are 5 ways in which selling options in a volatile market can work out well.

1. Option premiums are often much higher when the markets are volatile. When stocks are bouncing back and forth without much happening it will lead people to panic. This panic leads to people buying options, which in turn makes option prices higher. Option selling is the perfect way to take advantage of times like this.

2. Because options are offering higher premiums you are able to sell farther out off the money then you normally would be able to. This allows you to gain a higher probability trade.

3. You do not have to predict which way the market is going. This is extremely hard to do when the markets are just bouncing back and forth. When you sell options you can sell as far out of the money while still collecting a decent return.

4. Selling far out of the money options leads to less stress during times of uncertainty. When the waters are rough buying stocks and options can be extremely stressful. During the same time selling far out of the money options can gain you comfort in the higher probability trades.

5. Option selling plays on both stock price and volatility. Therefore selling highly volatile options means the options will most likely lose value as the volatility goes down. Because of this you can often have the stock go against you and you still walk away with a profit.

The vast number of reasons to sell options makes them a great addition to any portfolio. They can offer high returns during all types of markets but are especially good during times of uncertainty.

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Stock Trading Community-Making money is the common aim of all people. There are several ways of making money. Whatever ways you pick up should be genuinely used by you. It is not that making money is quite easy. People have a perception that they would get rich very soon if they invest money in the stock market. It is the misconception that has been spreading here and there. Yes, it would be easy, if you have the right resources with you or with less effective resources you should never expect the hefty bucks. People having the right kind of dedication towards stock market can obviously make money.

Without the guidance of stock trading communities people cannot make success in the stock trading. The present stock market is very huge, then it used to be in the past. A single mind cannot keep a track on the ups and downs of this network of stock trading. Here, we feel the need of some communities which might help us in dealing with the volatile stock market.

Basically a stock trading community is a community of traders who buy or sell products through internet facilities. Most of the members of such communities make use powerful tools like “chat” and “Forum”. Such tools increase the efficiency of the mode of communications among the members of the community. Apart from from these tools, there is another popular tool which is 'blog'. The uses of blogs in various stock trading communities. You can also put your views on the trading websites by means of blogs. These are informative tools which would definitely enrich your stock trading knowledge.

Turn on your personal computer and get the membership of various stock trading communities. Within a few months you will come to know the benefits of these communities. At the initial months, you should focus at the research of online stock trading and after you have got satisfied with the gained knowledge you should go forward for further investments. Never take the help of brokers or traders .Instead of it, you should trust your stock trading community.

By: DJose


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