Friday, July 9, 2010

Penny Stocks are any stock that trades below $5 per share. Most financial advisors and long-term investors tend to avoid them completely because of the extremely high risk that comes with owning them. They generally tend to fluctuate wildly in price, and although some report spectacular gains in a matter of a few days [or even hours], those who invest in them are generally surprised when they disappear altogether.

Penny stocks are basically low-priced stocks that sell for anywhere from $1 to $5, and are generally considered speculative. The term "penny stock" (also called microcap or small cap stock) is most commonly used for the stocks priced at under a dollar a share. You will not find companies such as Wal-Mart or Microsoft in the penny stock section, but remember – they were small companies too once upon a time. The savvy investor must look upon penny stock investing as a challenge to find "the next big thing."

Unfortunately, the penny stocks are not the ones covered in sources such as the Dow Jones Utilities Average, the S&P 500, the Wilshire 5000, and the Russell 2000. One great resource in the Reference section of your library is the Walker's Manual of Penny Stocks, now in its third edition, which takes a look at 500 companies that may be good risks if you are interested in penny stock investing. Your broker or financial advisor is also a good resource for information. 

Where do I go to buy a penny stock?
Most penny stocks trade in the "over-the-counter" market (OTC), and are quoted on the OTC systems such as the OTC Bulletin Board (OTCBB) or the Pink Sheets instead of with the NASDAQ or New York Stock Exchange. Before buying even one share, be sure to check out the company's financials. If the company is registered with the SEC, you will find their financial statements on the SEC's website. If a company is not registered with the SEC, check with your state securities regulator before investing. 

What should I look for in a company selling for $5 or less per share?
The same thing you should look for in ANY potential investment: quality, not quantity. Sometimes all you have to go on is whether or not a small company has the potential to turn a profit. Once again, do your homework. Find a company that is small yet profitable, has sound growth potential, and could yield significant gains over time. Other things to look for: the company's valuation, existing revenue stream, financial solvency, longevity and history, profitability, and number of employees. 

What are the pitfalls of penny stock investing? 
Because many of these companies are too small to file financial reports with the SEC, false and erroneous information is often the only kind available, which leads to a large amount of fraud being committed. The lack of public information, no minimum listing standards, and risk are the biggest deterrents to investing in penny stocks. 

How do I get started in investing?
All investing starts with the same thing: careful consideration and study. Check out books from the library on the subject, take classes, do some research online, read financial magazines or newspapers do some kind of preparation to make sure you understand what you are getting into before you write any checks or transfer any funds. If you still aren't comfortable with doing your own investing, you can always call a professional to help you.

5 Steps To Researching a Stock Trade Before Investing

Once you determine which business cycle the economy is currently in you can start researching for a trade. It is best to have some sort of a system in place that will be used before EACH trade. Here is a simple 5 Step formula to help get you started.

5 Steps to Investing Online:

1. Find a stock
This is the most obvious and most difficult step in stock trading. With well over 10,000 stocks to trade a good rule of thumb to consider is time of the year. For example, as I write this, it is the beginning of spring. It would make sense to consider stocks that traditionally make runs, or slide if you are bearish, during this time of year.

2. Fundamental Analysis
Many short term traders may disagree with the need to do ANY Fundamental Analysis, however knowing the chart patterns from the past and the news regarding the stock is relevant. An example would be earnings season. If you are planning
on playing a stock to the upside that has missed its earnings target the last 3 quarters, caution could be in order.

3. Technical Analysis
This is the part where indicators come in. Stochastics, the MACD, volume, moving averages, RSI, CCI, support levels, resistance levels and all the rest. The batch of indicators you choose, whether lagging or leading, may depend on where you get your education

Keep it simple when first starting out, using too many indicators in the beginning is a ticket to the land of big losses. Get very comfortable using one or two indicators first. Learn their intricacies and you'll be sure to make better trades.

4. Follow your picks
Once you have placed a few stock trades you should be managing them properly. If the trade is meant to be a short term trade watch it closely for your exit signal. If it's a swing trade, watch for the indicators that tell you the trend is shifting. If it's a long term trade remember to set weekly or monthly checkups on the stock.

Use this time to keep abreast of the news, determine your price targets, set stop losses, and keep an eye on other stocks that you may want to own as well.

5. The big picture
As the saying goes, all ships rise and fall with the tide. Knowing which sectors are heating up stacks the chips in your favor.
For example, if you are long (expecting price to go up) on an oil stock and most of the oil sector is rising then more likely than not you are on the right side of the trade. Several trading platforms will give you access to sector-wide information so that you can get the education you need.

Friday, July 2, 2010

Investment Clubs - What You Need To Know To Profit From Them

Investing in the stock market can be hard for many people. It's a difficult undertaking to engage it on your own. Without any sort of advice or training, you can quickly find yourself out of your depths and there is a real possibility that you could lose your hard earned savings and put your retirement in jeopardy.

One way that many individual investors mitigate this risk is by joining an investment club. Investment clubs are simply clubs that people join that allow them to get together and discuss different investments, sometimes pool their money, and hopefully get a leg up on the stock market.

It has been suggested that the average investment club doubles the value of its stock portfolio every five years. This is a broad generality of course, not all investment clubs are necessarily good simply because they exist. On the other hand, very few mutual funds can claim to have such a successful record, which is something you should really keep in mind!

Why do these silly little investment clubs beat out the big bad mutual funds year after year? It's a good question and there are several reasons...

One reason is that mutual funds have to pay their managers. That money comes out of the general profits of the fund therefore every dollar you pay to the fund manager is a dollar that comes out of your portfolio. Clubs don't pay managers so therefore don't have that added expense.

Clubs are able to invest in smaller and sometimes faster growing stocks were as a regular mutual fund is not often able to do that because they have to focus on large companies simply as a matter of scale. Mutual funds direct billions of dollars and it's physically not possible for them to buy stock in small companies because those small companies may only have five or $10 million worth of outstanding stock and the mutual fund has got billions of dollars that they need to stash somewhere.

One dirty secret in the mutual fund industry is that their quarterly reporting requirements often force them to do a lot of expensive and unnecessary trading. That trading and the fees involved with them comes out of your bottom line, and decreases the value of your portfolio. This obviously doesn't happen in a club setting.

Finally mutual funds usually get buffeted by fund investors who pull out their money when the stock market drops. It's a fear thing. When the stock market falls people get scared and take their money out which drags down the performance of the mutual fund. The fact of the matter is, when the market is down that's the time to buy, not sell... but the herd mentality runs rampant at mutual funds. This sort of thing doesn't seem to happen as much in investment clubs for some reason.

So there you have it, several things you needed to know about investment clubs and why they are better than mutual funds in almost every circumstance. Of course, as with any investment opportunity, be sure to do your own research and your own homework before investing your money in something you don't understand.

Friday, June 25, 2010

Twitter Your Way To Online Money Making Success

On first considering about money making online, the primary approach that most people will consider will be twitter! Twitter is actually a micro blogging networking site which gives you message lesser or equal to 140 characters and not more. With so much good intentions and positive benefits, twitter has set a new line of practice to make money online. Implementing right approach in twitter will make you get the best out from them. On building a best bond and relationship will be the core success of making handful income. The stronger you bind relationship with your network people will right away explain the success of your online business.

Online money making has become the most awesome gift, where you can bind long term business relationship with worthy clients across the world. Are you not using twitter to promote and get in touch with your customers? This shows that you losing a great deal or even it explicate your craziness of not knowing the supremacy of twitter! Twitter is a power platform which grants you to communicate with several hundreds of people at single shot. Twitter gives you an opening to build enduring relationship and even supports in selling products with quick approach. On joining twitter, you can sell your products to the network customers as most twitter members will buy products from people whom they know. For all these reason, twitter is defined to be the gold mine while it comes in product selling.

People who aren't using twitter will have either not understand the power of twitter or they might not be aware of its existence. On research, you can get to know the positive and successful stories of twitter and their role in driving traffic towards your business sale. Twitter is the best mini blogging site that drives incredible volume of traffic towards your way and this promising fact has inspired everyone to join the network. Is making money through twitter is too hard? Any novice will have this question, because they do not know the procedure of joining the network. Actually, the role of joining twitter will not take hard time rather you merely have to spare minutes to join the network.

Twitter can create magical deals! Are you surprised to hear this? Let me explain the truths for your observation.

1) Twitter can make your business to go one step forward, where you can explore and get connected to people across the world and build long term relationship.

2) Unimaginable traffic volume is what twitter offers and they result in groundbreaking sales to most businessman.

3) For making interactive relationship, one must definitely have to consider twitter as the primary supportive hand. Default visitors will right away get into your landing pages and this enhances your product demand.

4) Sell more and earn more is what that is being practiced in twitter. Twit your articles and publish your fame so as to gain remarkable reputation amidst the twit network users.

With no doubt, twitter is the best and beneficial social networking website that helps people in driving traffic and potential customers towards their business.

Wednesday, June 23, 2010

Coin Collecting Tips For Beginners

Coin is a hobby of kings. Collection of money is different from hoarding cash. Coin collecting as an art form dates back 14 centuries. Today, people around the world collect coins. Some people perceive their value, some as simple pleasure of getting your hands in different currencies. If you take a hobby of collecting money is concerned, it may very well done. This is a hobby that requires a degree of competence and this can be done by almost everyone.

There are many types of collectors. There are those who are for fun and others not so serious. Most collectors, especially children who start as informal collectors. Is postponed for collectors who have a specific goal in collecting coins. You can collect coins from different countries or different time periods do not intend to become serious.

After part of the informal gathering begins to notice the details of the parts is a curious collector of documents. This type of collection is usually a lot of money on trying to get parts. He just wants to know how to appreciate the coins. Soon we will begin implementing them in containers or albums. Collector's item will collect the coins with a specific goal in mind. You collect coins from a nation or a specific time.

Many collectors like to collect coins from a certain nation during a specified period. This kind of coin collection, the collector can travel the world through the coins. Someone may want to coins from countries that had visited the collection. Another way of collecting coins is the spirit of history. Many collectors collect coins to operate during a specific period in history like wars or declarations of independence. There are people who collect coins with errors exciting because these species are rare pieces to find today.

There are several ways to collect coins and each way is equally entertaining with others. This must be a hobby before deciding whether to retain. Coin collecting can require certain amounts of money and the collector must be wise, be in a game.

Friday, June 18, 2010

How to Start Forex Trading

Gone are the old days of forex trading when forex trading are just for the technical and finance-minded people. With the aid of computer and internet, anybody now can do trading online. Trading online has become one of the favorites of online earners specially those who are ready to invest some money to earn some.

Of course forex trading has a risk involved but it is the risk worth taking. Forex trading is buying and selling foreign currency. To acquire profit, investor must buy foreign currency at low price and must sell it at higher rate. The currency rate exchange varies every time, just like the stock market. The timing on when to buy and sell is very important so a forex trader must know the exchange rates history to get some pattern on how the currency rates will perform.

Trading online is open for everyone, although for beginners, there are many forex trading platforms who offer practice forex trading on actual market for free. These trading platforms are hosted by broker forex where investors will do the forex trading.  There are many online forex brokers so if considering of earning with forex, make sure to study about trading currency first before trying it. It is important to choose a good broker and trading platform. There are many sites which provide reviews of these forex platforms. Look for these reviews and feedbacks from their users.

To be able to start online forex trading, a credit card is needed to fund the account. Some forex platforms accept online payment processors like Alertpay, Liberty Reserve, Paypal, and most of them are accepting credit card payments. Once the account is set make sure to be updated with the rate of exchange currency as well as the current events. Just like stocks, forex rates are volatile and easily affected by news. The rate of a currency may go up and down in just a matter of seconds, so keeping up with the rates history, currency rate exchange and current events will help in deciding when to buy and sell foreign currency.

In any online earning programs, it is important to research and study the ins and outs of the system before delving in. Whatever money earned and lost online is the same offline. Forex trading is like gambling, so always think of the risk involves. Do not invest which you cannot afford to lose.

Wednesday, June 16, 2010

Make Money Through Online Paid Survey

Do you want to earn extra money while at home and do nothing? All you have to do is answers all online surveys. Doing paid survey online is one of the excellent ways earning extra money while at home. There are a lot of companies and corporations who are willing to pay you as they need your feedback and opinions as a consumer. They want to hear from you about their products and services.

If you are interested to find out how to get an online paid survey, the first step to do is to figure out where to start. In searching through Google service, you will find out that some websites are claiming they offer the best online paid survey. Only few of them are reliable, however you cannot guarantee that the one you joined in is a real one. It is really important to become aware of these scammers that will only get your money after signing up. Usually they will ask you to register with a membership fee before accessing their database. Once you become a member, you will only realize then that the sites they have listed are those companies did not exist or no longer in service. And when you ask for the refund of your membership fee, the administrator will only ignore you or either you will not access them anymore.

Since this kind of fraud problem of online paid survey, it is best to join a free survey site. This will help you to measure or make you decide whether answering surveys online is something that you want to be doing. It might be an easy job, but some of people are just more relax with it than others. If you are keen and do a little research, it is possible that you can find a good and reliable online paid survey.

Another thing that you can do to ensure you can get paid to take online survey forms is to join a legitimate survey site and get yourself set up. You will be setting up several email accounts for this online paid survey since most companies will send you bulk of survey forms which you may don't like to keep you personal email account with bulky spam.

The last thing that you can do is to select the best offers that you think you want to get involve and join in. you have to take a little time reading the qualifications and guidelines for each offer. Most of online paid surveys are easy to do while others can be a bit challenging to answer. Furthermore, incentives are not same. Some are cash, some are gift cards, others are items depend of the company who gives you a survey.

As you finish and answer the entire online survey forms completely, you will get paid for the online paid survey you have done.

Tuesday, June 15, 2010

Online Forex Trading

For many decades, the investment world was largely dominated by the stock market. Anyone who wanted to make money using their wits and by choosing the right investments used the stock market to make their choices. But with the recent crashes and losses in the stock market, many traditional investors are considering new methods of investing. Also, new investors are wary of sinking money into an old system that has not shown very good returns lately.

There's a different option for investing that may prove more appealing to many investors, both new and old. Online Forex trading, or foreign exchange trading, where currencies are traded. Due to the constantly shifting exchange rates, it's possible to trade currencies in a way that produces a profit. By buying a certain currency when it's worth is low, and then selling it once it rises, an investor can make a tidy sum.

Unlike the stock market, the Forex market never closes. Even if it's 3am, you can be trading currencies on Forex from your bedroom. It also can be easier to understand and quicker to learn than traditional stock market trading. There is risk, as with any investment, but talented online Forex traders can spot trends quickly and profit from it. Unlike the US stock market, the events that affect currency values can be unexpected. A natural disaster or great growing season may have the expected effects, but it can be difficult to guess what a new political leader or declaration of war may do to a nation's currency value.

By learning the symptoms and signs that precede the rise and fall of the worth of currency, any smart investor can make money from Forex trading. Trading is done through a broker, who usually charges a small fee. But there are many opportunities for those new to Forex trading to receive commission free trades. Online trading is much faster and easier to use than traditional forms of trading, and many brokers have lowered their fees to reflect that. Many of the most popular online Forex trading platforms let new users have a set amount of free trades to try their luck at Forex investing before making a big commitment.

Monday, June 14, 2010

How To Make Money Selling Anything Online Quickly And Easily

It might be electronics, it might be clothing, it might even be information. Whatever it is that you have decided to sell, you will be happy to listen to that you can make funds selling it. It is a competitive world on the net, with a massive number of people bargaining to sell the same thing to the masses. That is why you require to give yourself the edge by following these simple steps to help you to make funds selling anything quickly and easily.

Never forget that the customer is ALWAYS right.

- Speak politely to customers or potential customers. If you are communicating by email then ensure you have checked for spelling and grammatical errors.

They might frustrate, aggravate and irritate you, but you must never forget that without your customers you will have no one to sell to. Let's think about the net auction giant eBay. If you don't think about your customers then your feedback score will reflect their unhappiness, negatively affecting your ability to pick up new potential customers. So make sure that you recall the following:

- Go out of your way to make their life less hard. If you don't know the answer to a query then research it. If you still cannot find the answer then be honest, but at least make the work.

- Respond quickly to queries. Don't wait for a week before responding to people, it shows that they are not high on your priority list. You ought to check your emails at least one times a day to let you reply quickly.

Think about your selling techniques carefully.

To make funds selling anything online you must carefully think about your selling techniques. As an example, because you are up at 3am every day does not mean that everyone else is, therefore listing an auction to finish at this time on eBay won't maximize your potential income from it. Likewise setting a high beginning bid for an auction is likely to detract attention from it. People will drive the price up, overtaken by the frenzy that is the bidding war, but they are less likely to start that method if the price is artificially set high.<

Write down a strategy for how you will go about selling your products to increase your profit margins. Think about timing, cost and how you will monitor the success of sales within sure niches.

Drive traffic to your online auctions.

You don't require a degree in promotion to make funds selling online. But thinking clearly and generating a strategy will help you to increase your revenue dramatically. Why not take the time to give it a go now?

If no one can find your online auction then you will struggle to make funds selling it, making promotion an essential activity for every online business man or woman. If you have set up an eBay shop, for example, make sure you link to it clearly from all of your auctions. And why not link to it in the signature of your emails? You could also spend some time searching for relevant forums and blogs that would contain people interested in the product that you are selling. Leave some links dotted around and in no time you will see more people viewing your items.