Penny Stock Alerts – Trade Ideas Below 1 Dollar
Penny stocks continue being an attractive investment option for most people. However, the high level of volatility, which is associated with this investment, makes it high risk.
This article defines penny stock, advantages and disadvantages of this form of investment and what to do in order to profit from it (Penny Stocks Alerts).
It also provides valuable internet resources that you can rely on when trading penny stocks.
Also Trade Ideas provides a pre-configured and adjustable market scanner to find penny stock alert.
Penny stocks are a common type of securities that have low value and which trade at less than $5 a share.
What are penny stocks?
They are quite speculative and risky to invest in because of their low value. In most instances, these kinds of stocks are issued by startups and small companies whose market capitalization is not more than $200 million.
In the United states, penny stocks are quoted over the counter and traded as unlisted stocks, so there is a minimal possibility that you will find them being traded at major exchanges such as NASDAQ or the New York Stock Exchange.
Penny stocks are mainly traded through pink sheets, OTCBB and OTCLL.
Oil, gas and gold exploration companies that have minimal or no real assets mainly float Penny stocks. They are also used by companies that have erratic or no record of accomplishment of profit to raise operating capital.
Because of this, these kinds of stocks are regarded to be more volatile when compared to other kinds of stocks that are listed on major exchanges such as the New York Stock Exchange.
Benefits of Investing in Penny Stocks
Penny stocks can be an attractive option because of their volatility, which have the potential to turn in profits, especially if the company is taken over or if it succeeds.
You can reap huge profits if the price of the penny stock jumps from, say $0.05 to $3 overnight. This is something that happens at times, as there are numerous success stories that you can find in reputable message boards.
Drawbacks of trading Penny Stocks
The volatility of penny stocks is their main attraction to potential investors. However, this is also the main drawback for those who want to invest in these types of stocks.
Most of the businesses that float penny stocks are speculative in nature. You will find that the risks that emanate from these kind of stocks can be as a result of poor reporting by the penny stock firm or by low liquidity of the firm that is floating the shares.
- Low liquidity: Penny stocks are affected by low liquidity on everyday basis. It is important to understand that penny stocks are very specialized investments and a slight change in trade volumes may cause serious effects on stock market prices. These stocks are also sold infrequently and this makes it incredibly hard to sell them once you have. Moreover, there are instances where you will find it hard getting quotations of penny stocks, therefore making it very hard to value them. This means that if you do not exercise caution, there is a possibility that you will lose your entire investment.
- Poor reporting: The firms that float their stocks though pink sheets, OTCBB and OTCLL are not bound by stringent financial reporting requirements. There is no requirement for them to remain current or comply with SEC requirements. This is why penny stocks have become a treasure trove for individuals and firms that are delinquent.
How To Make Decent Returns From Penny Stocks
1. Buying long/selling short
You can make money from penny stocks in two ways: selling short or buying long. Buying long is where you invest in shares, hoping that their price will rise over time.
Many penny shares have risen in value between the rates of 30% to 70% and so there are profits to be made when you hold your shares for longer before selling them to interested investors.
Selling short is where you try looking for stocks that you believe will fall in price. Then, you can arrange to short them- that is taking out a loan from a broker and sell the stocks back into the market.
When the stock’s price plummets, you will make profits in the difference between the money you obtained from the sale of the shares and the cost of finances that you obtained from your broker.
Selling short penny stocks is ultra high risk. Serious investors should avoid shorting penny stocks! Use Penny stock alerts to find the best opportunity at any given time. Most traders avoid intraday trading penny stocks because of high transaction fees relative to price.
2. Pay attention to daily trading volumes
Even when it is attractive, you should not make a mistake of trading in penny stocks whose value is less than half a million in daily volumes. Volumes less than 500,000 are a clear indication of liquidity issues, especially when the price per stock is $0.5 or less.
The implication is that it will take you a long time before you get out of that situation.
3. Respect risk
Some penny stocks are thinly traded, so they can be very volatile. You have to understand that things change fast and this can mean big profits or losses.
You have to keep cool and respect the risk if you are to trade penny stocks and make profits. You cannot fight the risk that is associated with trading pennies; all that you can do is respecting it.
4. Maintain a trading journal
It is important that you set up a trading journal that shows whatever moves you make, the positions that you took and whether you made losses or profits in your trades.
A journal helps you keep track of what is happening and the strides that you have made over time. While you can use a pen and paper for this, there are some free to use online journals that you can use.
Important Internet Resources That Can Help You Trade Penny Stocks
Learn to Trade is an online resource that teaches interested person on how to trade penny stocks. The website is a reliable source of information and covers on the benefits, the lows and highs of penny stocks investment, penny stocks markets and many more.
It also covers technical aspects of the trade such as general stock indicator, market capitalization and how to do ratio or financial analysis.
Going a step further, you can use Trade Ideas Pro to find penny stock alerts in real-time. Configure your penny stock scanner in the way you want. To get in touch with Trade Ideas pro, read our Trade Ideas review first and join the free Trade Ideas chat room today. Get back to use once you are ready subscribing to TI pro. Its worth it because here you find Trade Ideas Coupon Code saving you between 15% and 25% on your next Trade Ideas purchase.
Take your long term trading and day trading to the next level. However, first use the free tools provided by Trade Ideas. Once you know that this product is right for you, continue with the Trade Ideas Promo Code and coupon.
6 Reasons For Stocks Online Trading – Pros And Cons
Big money can be achieved from buying and selling stocks. This is one reason lots of people pick investing in stocks instead of other investment cars. Today, stock trading is even more accessible via the web.
Given you have a computer system and also a reliable link to the web, you will certainly be able to deal stocks from the comfort of your residence or even anywhere you wish to as long as you have accessibility to the web.
Do you need an computer? Well, not realy. As of today you can log in into your online trading account from all over the world with any device that can go online. It can be a tablet, a classic computer or your mobile phone with a online broker account app.
Leading 6 Factors Why Online Stock Trading Is a Much better Choice
Reduced Commission Charges – Online stock broker’s charges commissions normally below $10 per trade. This is a significant difference with the $50 each trade commission’s which a traditional stock broker’s price.
Furthermore, you can discuss with the online brokers for the charges if you are selling big volume. Online brokers are likewise known as price cut brokers.
Immediate Acquisition – Each trader or investor recognizes that amongst the secrets to efficient trading within the stock exchange would certainly be the effectiveness or just how quick the order will prepare.
A mild delay in the order placement might lose making opportunities or perhaps cause even bigger losses.
Online stock trading will certainly have the ability to assure your acquisitions are positioned instantly
Artificial Intelligenced based Trade Ideas will give you an edge.
The real-time stock quotes that you get will likely be the real prices when you buy.
Huge Resources For Research – Participating in the essential research study along with technological analysis is an audio strategy to create income in stocks.
The data and also evaluation devices provided by the brokers trading system could significantly assist a trader to be effective.
Detailed Historical Information – It is usually tough or will certainly require a long time for traditional stock brokers to create reports from your previous trading activities.
On the other hand, online stock trading can provide immediate records both your recent and also past trading activities. These reports will certainly be readily available at all time as well as can be access through the internet anytime, anywhere.
Effectiveness In Trading
6 Reasons Why Trading Stocks Online gives a good balance between afforts and income
Sometimes, the failing or success in trading will depend upon the trader’s effectiveness. The necessary data for comparison and analysis are both readily available online as this help boost the trader’s efficiency.
Full Control of Financial investment – Perhaps the most effective benefits of on-line stock trading might be the administration that you have got on your financial investment. The real decision in buying and selling of stocks is going to be your duty.
On the other hand, this is dangerous if you do refrain from doing your very own research well and also do not take due persistence in picking your stocks.
However, if you have done your research correctly, you could be making well.
Typically, on-line brokers will not interfere with whatever decision you come up; they simply stock the solutions you require.
Should you decide to begin trading stocks online, do your part of doing the necessary study as well as learn the essentials? This is the actual trick to success in stock investing.
What Is a Stock Screener and Just how Can Traders Utilize It to Their Advantage?
Making great supply selections is important when it pertains to successful investing.
Traders will likely intend to discover how to select the stocks that will certainly give them the very best return on their financial investment.
There are countless stocks to choose from, and also choosing a good stock can confirm to be rather the difficulty. Trade Ideas Scanner Trade Ideas Review 4 can help you identifying good entry opportunities. Check out the latest Trade Ideas Promo Code for instant discounts.
It is basically difficult to sort through every single supply and research the information of each one- or is it? A stock screener has now made this a possibility. Screeners could help investors pull up just the stocks that fulfill certain requirements.
If you are brand-new to investing, you will certainly want to find out more regarding supply screeners and how they can benefit you.
Stock Screener Fundamentals – How To Use Them
Screeners are made use of to search for specific supplies that will certainly meet the standards offered by the trader.
They are composed of three different parts. Initially, they have a database of all firms that take part in stock trading.
Next, they have a set of concerns for investors to respond to in order to provide information regarding the types of stocks they intend to purchase.
Ultimately, they have a screening program that aids to sort the business based on the criteria suggested by the investor.
Utilizing the best stock screener available is a whole lot much easier than it may sound. Trading these days hasnt changed much from 2000. But stock screeners and stock scanners like Trade Ideas do an amazing job.
You will start by addressing concerns relating to the size of the supply, costs of the supplies, existing fads, price-to-earnings ratio, volatility, profit margin and debt-to-equity ratio.
When you address these inquiries, a checklist of stocks will be provided to you that fulfill your specific demands. Fortunately is that a lot of the questions that you respond to will be based upon a quantifiable element.
Quantitative analysis is essential when it comes to picking the appropriate stock to purchase.
Sorts of Screeners
Since you know a little about how stock screeners can profit traders, it is time to learn more regarding the kinds of screeners available.
There are 2 fundamental types- customizable screeners and predefined screeners.
Customizable screeners enable you to personalize your screening inquiries to bring you the most precise outcomes.
Predefined screeners have predetermined screening concerns that are typically made use of by many financiers.
These could be best for novices.
Secret Factors to keep in mind When Using a Screener
It is truly crucial to keep in mind that while stock screeners can be an actually great device for investors when it comes to picking the appropriate kind of stock, it is not always deceive evidence.
Supply screeners will generally only use the measurable information concerning the supplies, and will certainly not factor in any one of the qualitative variables.
You will certainly constantly wish to do a bit of research to learn more regarding consumer complete satisfaction, along with any kind of pending modifications.
Another point to keep in mind is that some stock screeners are not as current as others. Picking timely data sources is essential if you truly wish to get the best results.
Stock Screener Summary
Yes, Trade Ideas Stock Screener TI Pro 4 is not cheap. But like everywhere in live, free or cheap things are not the best. Why should you put trust in a free tool? Do you think that the provider of that free tool does anything for 0? No, every (at least nearly every) financial product is moneytized. Either you pay a fee buying or renting it, or the moneytization will work with in app purchases, ads and other uncool features.
In terms of market screeners I prefer a solid product like Trade Ideas Pro A.I. – Click here to read the trade ideas review. How is about you?
No matter how you decide. The financial markets do always provide a higher return on average than bank accounts with savings rates around 1%. However, the higher the chances, the higher the risk. So be careful what you do and take the right path in investing.
New York Stock Exchange And NASDAQ Explained
New York Stock Exchange & NASDAQ continue to be the world’s biggest exchanges for now.
Mainly the world’s blue chip companies trade shares worth millions of dollars in the two exchanges daily.
Featuring rich histories, New York Stock Exchange & NASDAQ continue to undergo transformation with the aim of positioning itself to serve the companies that use it to raise capital.
Continue reading and learn the history and the current situations of these two exchanges.
A). New York Stock Exchange
New York Stock Exchange is the world’s largest stock exchange, with its location in New York.
NYSE has a market capitalizationof more than 17 trillion dollars and daily transactions of about 200 billion dollars are completed daily. It has a listing of about 2000 companies, majority of them being companies in the United States.
The US Securities & Exchange Commission regulates NYSE.
History of New York Stock Exchange
The New York Stock Exchange was founded in May 1792 by a group of stock brokers who came together and signed the Buttonwood agreement. This was necessitated by fast growing securities market during those days. With so many companys listed at the New York Stock exchange a professtional stock screener like Trade Ideas Pro is a big help. In case you are interested in an active Trade Ideas Subscription you can save between 15% and 25% on your first signup. Check out the current discount rates, coupons and the working Trade Ideas Promo Code.
The founding stockbrokers set a rate of commission and started trading on government bonds. Later, telegraphic communications became advanced and this helped stockbrokers trade with ease.
With time, membership to the exchange increased as more opportunities became apparent. Now high sped transactions are completed in real time, thanks to technological advancements.
Current Situation at New York Stock Exchange
Now, both large and medium companies are listed at the New York Stock Exchange. Investors have an opportunity to trade on a wide range of classes that include options, equities, exchange traded funds and bonds.
Moreover, the stock exchange houses a number of stock market indices: the NASDAQ composite, NYSE US 100 Index, the NYSE composite, Dow Jones and others.
Nonetheless, New York Stock Exchange is the largest IPO provider in the world.
The companies that list on it to raise capitalmainly use ticker symbol.
About a third of the companies listed are from the financial sector, while the rest are from oil and gas, healthcare, technology, communications and many more.
Among the major firms that list on New York Stock Exchange, include Sprint Corp, Ford Motor Company, Bank of America, Twitter Inc. and Pfizer Inc.
History of NASDAQ
NASDAQ was formed in 1971 by the National Association of Security Dealers and sells stocks of companies that are listed on its stock exchange with the ticker symbol NDAQ.
It started trading in February 1971 and was by then the world’s first stock market that trades electronically. However, the electronic system was just a quotation system and did not have a way of handling electronic stock trades.
NASDAQ went through many transformations over the years and several years later, it became the first stock trading company to trade online. This helped attract fast growing blue chip companies such as Dell, Oracle, Cisco, Apple and Microsoft among others.
It also matched with the London Stock exchange on 1992 to offer intercontinental linkage in the trading of securities. In the year 2006, NASDAQ changed its status to a Licensed Securities Exchange.
It later merged with OMX group in 2007 to expand its presence in Nordic countries and changed its name to NASDAQ OMX Group.
Current Situation at NASDAQ
Now, NASDAQ is known to the stock exchange for industry-leaders and us one of the largest United States based stocks market.
It has more listed companies than the New York Stock Exchange (About 3,100) and trades about 2 billion shares daily. This is the biggest amount that has been recorded by any stock exchange anywhere in the world.
Moreover, NASDAQ has handled the highest number of Initial Public Offers in history-more than a thousand since year 2000. Also Nasdaq is ferociously defending its territory.
To be listed on NASDAQ, it’s a must that a company be registered with the Securities and Exchange Commission of the United States and have at least three companies acting as dealers or brokers of specific securities.
They should also meet the minimum stipulated requirements with regard to shareholders, capital, public shares and assets.
Stock Exchanges – Conclusion
New York Stock Exchange and NASDAQ remain the biggest exchanges not only in the United States, but also all over the world.
There is billions of dollars worth of shares that are traded daily as the world’s biggest companies in various sectors of the economy seek to raise capital.