Saturday, March 13, 2010
Thursday, March 11, 2010
Trading Pink Sheets - Penny Stocks Ca...
Trading Pink Sheets - Penny Stocks Can Be Very Lucrative
By Dustin Hoffman
If you took $1,000 and put it in a savings account today in your local bank, you might make $10 in interest in one year, if you were lucky. If you wisely invested that $1,000 and put it in the average stock, in an average year, you might make $100 if you were very lucky. But, if you managed to find the right pink sheets penny stocks and invested the same amount of money, it would not be unusual for you to walk away with $5,000 or $10,000 - or more.
The return on investment when you are trading pink sheets penny stocks far outweighs the risk involved. Imagine getting 500% on your investment in a short period of time. It can happen and it does happen to wise investors every single day.
Of course, like all investing, you never want to put all of your eggs in one basket, so by only allocating a portion of your portfolio to pink sheets penny stocks, you will be much safer. Some experts say that 10% or less of your portfolio should be in small cap stocks, or stocks that trade at less than $5.00 per share. But, if you can pick your pink sheet penny stocks wisely, you can multiply that money much faster than the rest of your portfolio.
When you are looking for a penny share, the pink sheet and over-the-counter are the two primary places to look. In the past, there has been one overwhelming problem with trading in this area and that is that the companies involved were largely unregulated. You may have been buying shares in a shell company, or one that did not really exist, but was well-hyped. Especially in this internet age, there are many companies out there that do not really exist, yet people trade their shares. This is a dangerous game.
So, when you are looking at pink sheets stocks, you need the proper guidance to make sure that the companies you are looking at are legitimate and have a true reason for making such a dramatic move to the upside. Pharmaceutical companies, energy companies, and internet companies are well known to move very quickly and dramatically from penny stocks to large cap - almost overnight. And, if you are on for the ride early in the game, you will make more money in this sector of your investment portfolio than in any other area. A good way to accomplish this is by subscribing to a good penny stocks recommendations service.
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Article Source: http://EzineArticles.com/?expert=Dustin_Hoffman
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Where Should You Go For Penny Stock R...
Where Should You Go For Penny Stock Recommendations?
By Dustin Hoffman
Despite the downturn in the markets over the past few years, more and more people are getting into trading small stocks and taking hold of their own future. It is a great idea for every investor to fully understand what they are trading and why and how they are properly diversified. For this reason, many people are looking for penny stock recommendations because they are interested in diversifying even further. By adding micro stocks to your portfolio, you are giving yourself the real opportunity to make some incredible growth over a short period of time.
When you go looking for penny stock tips, you absolutely have to be careful where you get your information from. There are many individuals and small companies on the Internet who are using the public interest in these small stocks to give faulty penny stock recommendations, recommendations that only benefit them. Sometimes these are hard to identify, so make sure you follow through with due diligence to avoid getting burned.
Penny shares, in general, do not trade in the pennies. They trade for less than $5.00 per share, and have the ability to move dramatically. They rarely move with the market. So, if the DOW goes up one percent, do not expect your penny share to go up one percent, too. Because there is so little volume and open interest in small cap stocks, they will not move because of the market or market sentiment.
Penny stocks recommendations are necessary in order for you to identify which stocks are about to move or "pop" and why. There has to be a reason. If someone tells you about a stock and cannot give you a legitimate reason as to why it is about to explode, then stay away. Good penny stock recommendations will come to you with the background on the company, what it produces, why it is important, and the real reason behind the changing share value. Perhaps the company is about to be bought out, or maybe they are about to have a drug passed by the FDA. There are many reasons why a penny share will move quickly, but you need to know what they are.
With all investing, you never want to have too much of your cash in one place, so do not get too greedy with penny stocks, but they can make you an awful lot of money quickly if you do it the right way.
Trading does not have to be a stressful. There are a lot of resources out there, the trick is selecting the right one. For more information on penny stock recommendations please stop by my Penny Stocks Recommendations blog.
Dustin
Article Source: http://EzineArticles.com/?expert=Dustin_Hoffman
Finding Penny Stocks To Invest In Can Leverage Your Investment Po
Finding Penny Stocks to Invest in Can Leverage Your Investment Portfolio
If you have survived the last few years' worth of investing and still have your nest egg intact, then you are one of the lucky ones and are probably looking for good penny stocks to invest. A lot of people who put their money in the hands of their financial advisor or just left it sitting in a 401K ended up with little more than an empty investment account.
Right now is a difficult time indeed for people who have money to invest. It seems as if the rules have all changed as to how your money should be diversified and no one can give you a straight answer as to what sectors are safe, how much cash you should hold on to, how much you should have in gold or silver, and how much in foreign funds.
But one thing that has always been true is that finding penny stocks to invest in can be dangerous but very lucrative. If you stop and think about it, many of the stocks that are bellwethers today actually started out as penny shares to invest in. Microsoft, Nike, and many other names that you know and use every day were penny shares at one time.
You should not think of a micro stock as a stock that is less than $1.00 per share. In reality, any stock that regularly trades at less than $5.00 per share is considered a penny stock. You may hear them called "small cap" or "emerging growth" stocks, but they are still penny stocks.
Many people have made a lot of money in these small stocks, but just as many (or more) have lost money and that is because there are a lot of unscrupulous people pointing out penny stocks to invest in. They buy up a stock, tout it, have others drive up the price, and then sell their shares at a profit, leaving everyone else in the dust.
But, the good news is that you can make plenty of money if you know how to find realistic penny stocks to invest in that are real companies with a real possibility of getting bigger. These stocks can enable you to double or triple your money in virtually no time at all, and if you have the foresight to hold on to them even longer, you could see enormous gains. Of course, knowing who to trust in the stocks industry is vital, so that you do not get ripped off by people trying to make a profit off of you.
Picking the right Stocks to Invest can be alot of hard work, alternately you can subscribe to a legit Penny stocks recommendations service for analysed penny stocks to invest.
Dustin
Article Source: http://EzineArticles.com/?expert=Dustin_Hoffman
How To Pick Penny Stocks To Invest In
Penny stocks usually belong to smaller companies that have not graduated into the main stock exchanges (where stocks are traded). The stock market is like an auction house where shares are bought and sold and buyers and sellers determine a price by bidding on stocks. The trick with Penny stocks is that the companies who issued the shares are not as stictly regulated by the SEC and provide less acurate or current information.
Knowing which penny stocks to invest requires a good deal of research and accumen.
Many people rely on news and Internet publications about Warren Buffet and his preferred stocks, but in reality by the time stocks get to this point, their value has been hiked up and they are not really such a bargain. Also, it is rare to see big firms invest in Penny stocks.
The best way to know which penny stocks to invest in and which penny stocks to watch, is to subscribe to a Penny Stock Newsletter that provides current and ral time penny stocks recommendations and penny stock alerts.
In addition to belonging to a good penny stocks recommendations service you should also perform some basic due diligence yourself. Analysis of penny stock companies usually relies on checking the company's management (is it solid), the company board members and shareholders and the history of the company performance.
Sometimes information on Pink sheet penny stocks and OTC penny stocks can be difficult to find. you will most likely find some of the relevant information on the OTCBB and the penny stocks message boards.