Why Do Some Investors Opt To Trade Penny Stock?

By Malcolm Torren

The stock market is a huge established entity that opens opportunities to anyone who is interested in stock trading. Unfortunately, not everyone can enjoy this chance. More so not everyone can afford it. But there are basically three levels of stock investments to choose from. There is the large cap investment for multi-billion firms. Then there's the medium cap shares investment. And lastly the there's the small cap trading commonly known as penny stocks. Some inventors choose to trade penny stock.

Penny stock is called by different names. Some stock market people would call it microcrap stocks, some would say small caps. Others would also refer to it as nano caps. The closest term used is penny shares. Occasionally it is also referred to as emerging growth. This trade penny stock article will use three variations - small caps, penny shares, and penny stock for the purpose of easy recall.

So why do some investors opt for penny stock trading than other stock investments? Here are some of the obvious reasons:

- It's cheap and thus affordable. The trade is usually pegged for a starting value not exceeding five dollars per share. In fact, the most frequent practice is priced at three dollars, one dollar, less than a dollar. The only hitch is that not many investors frequent this investment because it is less liquid. Also if these stocks are derived from pink sheets, it's normally lacks important information vital to your decision making.

- More press releases. Yes, there are more press releases with penny stocks than the other two stock investments. Penny stock promoters do this to expose the information to the public thus attracting more investors. The downside is that, many of these press releases are abused by fraudsters and over hyping them. Fortunately, if your source is credible, media exposure increases the value of your trade penny stock thus an opportunity for profit.

- Penny stocks have higher ROI. Yes this is true. While the dangers of the small caps investments are often forewarned, there is still good money that can be made here. When you understand the trade enough to have that level of confidence, you will see the benefits. The right attitude should be to remember that every investment has risks.

- Emerging companies with new product use penny stocks as a launching pad. Well some but not all. If new products are launched, there is no surety about its success yet. Your only way to determine its probable success is to check the manufacturer's background. In this trade penny stock business, you have to do your own research extensively. Many successful small cap investors spend about five hours per day working and digging information.

So if by any chance you decide to invest in stocks and you don't have enough money yet, try to opt for the small cap investment. Then when you learn the trade penny stock loops, you can always work you way up. Your success can be determined by how much you are willing to work for it. Just stay with accurate facts and be smart with your decisions. - 23199

About the Author:

Discover how to trade penny stock wisely. Find basic tips on investing in penny stock.

Bad Credit Can Get Debt Consolidation Loans

By Layla Vanderbilt

If you're accumulating more debt than you are income, then it may be time to consider getting a debt consolidation loan. A debt consolidation loan is perfect for anyone who has a lot of bills due to debt and can?t continue to pay them with their current income. If you don?t keep up and pay your debts then you risk getting charged late fees and having your credit damaged further. There are many ways that you can stop this issue before it becomes a huge problem.

There are many ways to get money that you need or a consolidation loan even if you have bad credit and don?t get approved for a unsecured loan. The first thing you can do is to try to get a secured loan. You will need a house or car to use as collateral which will ensure that the lender gets paid off. This also means that you?re likely to lose your collateral if you fail to make the payments. You can also try various credit unions to get an unsecured consolidation loan rather than a bank. In some cases credit unions will be more willing to lend out money to those with bad credit than banks. There are some lenders that specialize in bad credit consolidation loans. However, it may take some searching to find out which lenders do this.

If you are unable to get an unsecured loan there are other options for you. If you still want to get a debt consolidation loan and you have bad credit then you can apply for a secured loan. To get a secured loan you will need to have some type of collateral usually in the form of a house or vehicle. Lenders are more likely to give out secured loans than unsecured loans because they can sell the collateral to get their money back if you don't pay them. It?s always better to get an unsecured loan if possible however if you?re finances are in jeopardy then a secured loan will work as well.

Another option is to hire a company to help you manage your finances. These companies will help you lower your monthly payments. While the companies don?t give out loans they will contact your creditors and help you get manageable payments. They will charge you a small fee to do this and you can benefit from lower payments and lower interest rates. Many creditors are happy to work something out if they feel confident that they will be getting what?s owed to them. If you have bad credit then this is a good way to help you manage your finances.

If you have bad credit you may have trouble getting rid of debt. If you know you have bad credit and your debt just keeps growing then you should try to come up with a solution to the problem before it gets worse. Many people wait too long and they get so far in debt that they can?t get out. If your debts are starting to increase rapidly then you will want to consider a debt consolidation loan. If you have bad credit you may still be able to get a debt consolidation loan even with bad credit.

If you have bad credit then you may have problems getting rid of your debt. However it?s not impossible you simply have to find a solution to the problem. It's best to catch your problem early so that you don?t have bigger issues later on. The earlier you take care of your debts the faster you?ll be back on your feet. - 23199

About the Author:

Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.

Another Economic Crisis Is Coming. Are You Prepared?

By Felix B. Hardy

Free Stock tickers are everywhere! You observe them in the Finance Section of every one of primary TV networks, running in the bottom or top of the screen. Every on line stock trading company has one. The advantage of stock tickers are that you get a quick summary of share prices in a particularly intuitive format. And you can without difficulty get your own tailored real time stock ticker.

There are various different sorts of stock tickers, each with their own characteristics, but they also share various characteristics. The most general features are the company symbol, the value of the company's shares, and the direction in which the stock price is moving.

As mentioned, there are scores of special ticker software available for your desktop, so you too can have a tape stock ticker running on your computer. Most desktop stock tickers are relatively diminutive programs, that does not use a lot of RAM or CPU, so you can continue your work. Often the stock tickers can be configured to signal you if the price of a chosen stock move outside a predefined area or the stock price changes hastily. The desktop stock ticker can be downloaded from many of the online stock trading companies. Since the tickers often are very diminutive programs, the download and installation is nippy and easy done.

Real Time or Near Real Time?

Most free desktop stock tickers shows the stock prices in "near real-time", meaning that the prices are postponed " quite often 15 to 20 minutes. If you are a customer with an online stock trading company however, you can generally get real-time prices - this is evidently a massive help, especially if you are a day trader, who buys and sells regularly the same shares though out the day. In this case you have to know the exact price, since you make your money on very petite movements. If you are a long term investor the delayed prices are of less importance. - 23199

About the Author:

Prior to buying stock online, make sure to download a desktop stock ticker, as desktop stock tickers are easy to use and gives a great overview.

Top Five Stupid CFD Trading Mistakes

By Jeff Cartridge

There are certain silly mistakes that all traders have made at some point in their trading careers, even though there are simple techniques that can be used to avoid them.

OOPs, I Pushed The Wrong Button

One of the first mistakes that is very common is pushing the buy button when you meant to sell or the sell button when you meant to buy. This often happens when exiting a position especially if you are trading both long and short. Instead of exiting the position you end up with a position size twice what you started with.

When you place a trade immediately check your open positions. By doing this you will pick up the mistake before it costs a significant amount of money. Not realising that you have an open position can be far more expensive.

Forgotten Stops

If you exit an order when you are watching the screen, make sure you remember your stop orders. Assuming you have placed a stop on the trade, which you always should, then you must cancel the order if you exit before the stop is triggered. Forgetting your stops is a risky exercise and if the stop is triggered it could be hours before you know that the order was traded. The market may move in your favour, but it is not something I would like to gamble on.

Before exiting the trading platform at the end of a trading session make sure you check your open positions match your stop loss orders to avoid any surprises when you next enter your trading platform.

Oops, Too Many Zeros

If you have calculated the correct position size, it is still possible to get it wrong by adding on, or forgetting an extra zero. Too many zeros can results in large losses and too few zeros can dramatically reduce your profits.

When you look at the open positions after you place an order you should be easily able to verify that the order you placed was the correct size.

Stops Too Tight, You Lose

To avoid losing money many traders will reason that a tight stop will protect them, but placing a stop loss too tight can result in the trader being exited prematurely from the trade. The trader has created exactly what they wished to avoid.

Stop placement is a critical piece of your trading puzzle. The stop should be placed outside of the normal fluctuations of the share and at a place where your trade idea will be clearly proved incorrect.

Follow The Rules

The last common CFD mistake is to enter a trade when you know that you should not. It is common for new traders to chase a share and jump on board after the share has been moving, however they will quickly learn the error of their ways. A beginner has an excuse, they do not know any different, but even more experienced traders are caught in this trap.

There are a huge range of opportunities that you can trade, more than you would have capital to follow and there are always other trades waiting around the corner. Ensure you follow your strategy and stick to your trading plan. This can help you avoid chasing trades which can be an expensive exercise.

These simple mistakes can be eliminated by learning a number of simple habits that can dramatically improve your profitability. - 23199

About the Author:

Jeff Cartridge started trading CFDs in 2002 when they first launched in Australia and co-created the website LearnCFDs.com A Simple Timeless Method for Huge GainsCFD Trading Strategy

When You Learn Technical Analysis, Don't Forget The Ascending Continuation Triangle

By Chris Blanchet

Although we have already looked at a Classic Pattern in the Learn Technical Analysis Free series, another important pattern to understand early on is the Ascending Continuation Triangle. This pattern is formed by two converging trendlines -- a horizontal upper line that scrapes along two steady "highs" of a trading range and an increasing lower line that follows two higher lows of the same range.

For investors who want to learn technical analysis, the Ascending Continuation Triangle is an important pattern as it provides us with a Bullish trading signal. Since the pattern is normally a short-term pattern that takes shape over one to three months, investors are able to quickly lock in gains and reverse their position without much loss.

For investors who are just starting to learn technical analysis, remaining patient as the pattern takes shape is often more difficult than spotting the pattern itself. To confirm the pattern, here are a few things one should look for.

Volume

This is probably the most important confirming factor when it comes to this pattern. As the pattern takes shape, volume should be diminishing. When the pattern is confirmed and there is a breakout, volume should spike. Lacking this volume spike at breakout, investors should no consider the pattern reliable and should steer away from making trade decisions based on it.

Moving Average

The Moving Average should also be taken into consideration. If the pattern's prices touch or come close to the 200-day moving average, then the pattern is considered strong.

Duration

Duration is also an important consideration. Many people who are just starting to learn technical analysis will forget this. Ideally, the break-out should occur long before the pattern reaches the right tip of the triangle. In fact, investors should expect break-out to occur roughly three-quarters to two-thirds of the way along that upper line.

In terms of explaining, in fundamental terms, how the Ascending Continuation Pattern evolves, consider a large institutional investor who wants to unload a large quantity of stock at a certain price. The order is placed. Once that price is reached, buyers will draw on the large supply and consequently, for other sellers to fill their orders, the price will need to drop. This will create a resistance line. However, once that large supply of stock is exhausted, the price will continue to climb as it normally would, providing the breakout that investors who want to learn technical analysis are waiting to see. - 23199

About the Author:

For investors who want to learn technical analysis free and receive two free stock picks every week that exemplify the signals discussed in the Series, visit Online Trader Today.com.