I've noticed there are more sites offering free penny stock alerts than grains of sand on the beaches of North Carolina. Ok that was a joke but seriously, it is getting ridiculous. Unsuspecting penny stock newbies are being harmed by the biased advice of penny stock promoters. I want to link up an article I wrote so you can get some education as to how to handle these websites. Most are full of dung, but not all of them are sites you should ignore.
This article explains the different types of penny stock alerts and how they often pan out. Hint: it does not end up pretty for people who just take anyone's advice with regard to penny stock trading. It is in your best interest to do your own research, and the article linked in this paragraph should be where you start.
Just last week there was a flurry of hype amongst penny stock bloggers concerning the AWSR penny stock alerts sent by popular stock promoters. The hype died down by Friday afternoon after this promoter rescinded AWSR as an official pick. Such is the world of penny stocks.
Thursday, February 16, 2012
Tuesday, February 16, 2010
Penny Stock Trading Strategy - How to Manage Your Trading Money
Penny Stock Trading Strategy - How to Manage Your Trading Money
By Matt P Morris
An essential element of a good penny stock trading strategy is a money management plan. For some people this occurs to them as common sense, but some people approach trading as a form of gambling and use little to no discipline when it comes to managing their trading capital.
2 Key Factors To Help You Succeed With Penny Stock Trading:
1. Divide your capital into 4 imaginary equal blocks. This is simple, if you start with $1,000 in your trading account, simply make a mental note to not put more than $250 into one stock/equity. If you start with an odd number, just divide it by 4 to get an idea of what a fourth of that amount is.
You can choose to divide up your capital into thirds, but I wouldn't go any further than that. If you start putting half of your account or more into any single penny stock, prepare to be disappointed when you see your small starting amount of trading capital turn into vending machine capital. Of course I am using a little humor here to illustrate my point.
2. Know when to cut losses. Many times you will not be able to use stop losses when trading pink sheet or otcbb stocks. So you will have to use what many traders refer to as "mental stop losses". Basically that just means that you will sell a certain stock if you are down a certain percentage amount or if it breaks a key support level on the chart.
You have to give your trades some room to breathe so to speak, but I usually like to cut my losses around 30% or so. May sound like a big loss and it is, but when your other trades are 50% to 200% winners it ends up working out. Trading micro cap stocks can be a successful venture, you just need to use some level headed judgment.
Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter you will find. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 free hot penny stocks here.
Article Source: http://EzineArticles.com/?expert=Matt_P_Morris
http://EzineArticles.com/?Penny-Stock-Trading-Strategy---How-to-Manage-Your-Trading-Money&id=3744566
Wednesday, February 3, 2010
The Basics of how to trade Penny Stocks - Laid out Clearly
The Basics of how to trade Penny Stocks - Laid out Clearly
http://www.MicrocapMillionaires.com
So you want to know the basic--we're talking super simple steps to become able to buy and sell a penny stock online? Ok, we will do that, and I will not assume that you know anything when it comes to trading, stocks, online brokers...or anything that pertains to this subject. So don't get bored if you already know some of this stuff, because some people need to learn and there is few resources available to them that will "take them by the hand" and show them what is revealed in this document.
The only thing I will assume is that you have access to the internet. Let's look at the first thing you will need to do:
1. Open an online trading account. There are many online brokers that are eager for your business, but when you are first starting out you don't need all the fancy bells and whistles that many brokers tout to potential clients.
What you need is simplicity and affordability. I recommend Zecco as a good online broker to start with, as they only charge $4.50 per trade. This low price is unmatched. This low commission fee allows you to start with as little as $250 or so and still maintain a realistic chance of succeeding and turning your initial capital into a much bigger number(since you won't be paying out the yin-yang for each trade).
2. Access to a service that provides research or penny stock picks to you. This is where you have to be extra careful. Most hot penny stocks don't stay that way for more than a few days, so don't think you can just go buy any penny stock that is having a big day. This is often due to what we call the "pump and dump" penny stock. Penny stock promoters will pump up a stock and then slam it down when they dump their shares into trading.
You want to steer clear of penny stock newsletters that engage in this shady behavior. It's totally legal as long as they disclose the compensation they received, but it's definitely not beneficial to those who follow their advice 9 times out of 10.
What you want to do is find a penny stock newsletter that only has an interest in seeing you succeed as a trader. There are a few good ones out there, but the newsletter that you should check out is http://www.microcapmillionaires.com.
You can get 3 free penny stock recommendations, and the email alerts and updates make things easy to understand even for the most unseasoned penny stock trader, including buy and sell alerts. If you want to become a paid member, it's $49 a month, but I recommend that you join the free list for a while before you do that.
Ihr Takeover Sends Stock Up 73 Percent - Find the Next Takeover Target
On Dec 18 2009 IHR or Interstate Hotels was bought out by a joint venture between Thayer Lodging Group and Jin Jiang Hotels. The stock jumped from $1.30 to $2.22, about a 73 percent gain. Sure is good to see buyouts starting to pick up as the economy gets on it's collective feet again so to speak.
Interesting story, but how can you benefit from it now that it has already happened? You can't go back in time and buy IHR stock on December 17th can you? (If you happen to have a time machine that has this capability let me know and I will buy you lunch at my favorite pizzeria)
Don't just look at this story and the stock chart of IHR and kick yourself because you missed out. See it for the opportunity that it is. This takeover is an opportunity to find the next stock buyout or takeover. All you need to do is use the following strategy:
1. Plug the stock ticker (IHR) into finance.google.com
2. Scroll down the page a little and look at the section entitled "related companies".
3. Now look at the column at the far right, which is "Market Cap". This details the market capitalization for each similar company. Pick 2 or 3 stocks that have the market caps that are closest to the stock that has been bought out, in this case it would be IHR. I just did this scan and I came up with the stock tickers of LGN and RLH.
That's it! You can choose to buy these stocks and simply wait a little while for takeover offers to send them up. Even if they do not get takeover offers, often times they will rise significantly over the course of a few weeks due to the sympathy from the recent buyout.
This strategy has worked for me fairly recently. When I saw news about PER being bought out, and the subsequent huge one day jump in their share prices, I used this tactic. I came up with ACS as a potential buyout target. A couple weeks later Xerox offered up a nice deal to buy out ACS. Pretty cool right?
I alert my subscribers of my penny stock newsletter to any potential buyout target stocks, and you can get 3 penny stock recommendations for free just by signing up.
Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 hot penny stocks here.
Hot Penny Stock Picks For Today
Ok so you just jumped on a search engine and are looking for a hot penny stock to play today? Is that right? Well you won't be lacking any pump and dump newsletters that will try to sell you some fantasy of the "Next Microsoft" of something like that.
Can I save you a headache...and a lot of money?
I trade penny stocks but I don't mess with pump and dumps. I never have received compensation to pick a stock and I never, ever will. That's my word and I'm sticking to it.
Like I said above, there is no shortage of penny stock picks out there. However I have an objective point of view and I use cutting edge technical analysis to alert subscribers of Microcapmillionaires.com to microcap stocks that have the potential to go up as much as 1000%.
Timing is key with trading, and having a clear plan with each trade is essential. Developing a plan for each penny stock that I trade is not difficult, but it does take some practice. To see how our stock alerts do, sign up for 3 hot penny stock picks absolutely free of charge, no credit card needed.
I alert new picks frequently, so once you sign up (for free) it won't be long before you get a pick. I have many paid subscribers that signed up for free and chose to become paid members once they got a feel for the newsletter. Make the most of our penny stock recommendations and learn unique trading tactics with our service.
About the Author
Matt M, I run http://www.microcapmillionaires.com the penny stock newsletter with a growing number of ecstatic members!
What's The Best Penny Stock Newsletter - By Far?
I understand how someone new to penny stock trading would go to google and type in "what's the best penny stock newsletter?"
...I really do. All of the paid ads you see when you do such a search are paid penny stock promoters. They don't charge people anything to subscribe to their newsletters, however. The money comes from the individual penny stock companies that they "pick"...which I say sarcastically since they are only "picking" each company's stock since they were paid to do so.
No objective analysis is used, a wad of cash in their back pocket is the only reason they make a microcap pick. Money talks I guess huh? I tend to rant about paid pumper penny stock promoters (tongue twister if you say it real fast 5 times!) in a lot of my articles so I will hold off on it right here in this particular article.
That being the case, you now know that most of the penny stock newsletters you see floating around the web are simply no good. They do not give one iota if you make money by trading their picks.
Now I'm not one to toot my own horn [toot-toot], but I can say that I am not a paid penny stock pumper, nor will I ever be one.
I use objective analysis to pick penny stocks for my subscribers, and I have bucket loads of positive testimonials from the gains my subscribers made by trading my picks.
Microcapmillionaires is the best penny stock newsletter, and that's just the way it is. You can sign up for 3 free penny stock picks and see for yourself. If you like it you can become a paid member, if not you are still cool by me! penny stock recommendations
About the Author
Matt from Microcapmillionaires.com stays up most of the night looking for the next big pick that will make you some serious cabbage. Get 3 free penny stock picks and see for yourself.
Penny Stocks - What are the odds?
Penny Stocks - What Are the Odds That I Can Make a Profit?
By Matt P Morris
Penny stocks. Bring up that topic around well to do circles of people and you will likely draw some snickers and light hearted mockery that would have you to believe it is a fool's game. People are taught that big, boring blue chip stocks are the best vehicle to place their money in as an investment. I will concede that many well known stocks are good investments for the long haul. They sure are boring though!
So the question presents itself in the minds of people who dare to dream that they can make a fortune, either big or small: What is the next big penny story? Or maybe something a little more specific, like: What stock is going to be the next big softdrink maker? Or the next software giant or smart phone maker?
A few years ago this sort of fascination with penny and micro cap stocks often scampered through my mind, if only for a few minutes each time. I soon learned that making a fortune with penny stocks is possible. But not from buying one or two penny shares and holding them until they become world renowned companies! The real money is made in trading in and out of penny stocks, swiftly and without emotion.
Don't misunderstand, you can many times find the right penny stock to trade if their story is sexy. Just don't get carried away with believing in the company and always take your profits when your gut tells you to. You will develop a "good gut" for trading penny or micro cap stocks after you have gained a little experience.
I recommend starting off paper trading, after you have proven yourself to be successful, then you can go ahead and start trading with real money. If you want some penny stock recommendations, go to microcapmillionaires.com and sign up on the free list. You can join as a paid member whenever you wish, but I want you to be sure about it before you take the plunge.
Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" stocks. Sign up for 3 free Penny Stock Picks here.
Article Source: http://EzineArticles.com/?expert=Matt_P_Morris
http://EzineArticles.com/?Penny-Stocks---What-Are-the-Odds-That-I-Can-Make-a-Profit?&id=3589093
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