How to Buy Penny Stocks

March 9, 2010 · Posted in Stock Market · Comment 

Trading and buying penny stocks has become increasingly popular over the past fifteen to twenty years in Europe and throughout America. More and more people want to get involved with buying penny stocks and trading them to hopefully make a profit. To buy penny stock with success and vigor you must first get a grip on the fundamentals of this kind of investing as it is similar to more conventional investing but it also exemplifies many unique characteristics that almost any new trader should understand before taking the next step forward.

If you want to buy penny stocks then you need to know what a penny stock is. A penny stock is essentially a low-cost stock that trades for less than about five dollars a share on over the counter quotation services such as Pink Sheets and the OTC bulletin board. Although many argue that penny stocks are not traded at high volumes, many penny stocks exemplify high trading volumes somewhere in the neighborhood of the hundreds of millions. Penny stocks are ultimately high risk investments that can make their investors a lot of money but at the same time can cost an investor who may have been speculating their entire bankroll if they’re not too careful.

If you want to get involved trading and buying penny stock then it is always best to educate yourself first before you actually start trading. It doesn’t take that long to learn the fundamentals of penny stock trading but it is important that any new investor first get a grip on such vital information because it will serve them well going forward into the future. Once you have educated yourself to the point that you feel that you are ready to trade penny stock then you simply need to open an account with a brokerage, make a deposit and start trading.

Some of the best brokerages allow you to open an account online and use their online software to make trades thus taking the human element almost entirely out of the picture. You should be careful though because trading this way is so easy, and it can become easy to overlook the fact that you are dealing with real money and not just pixels on a screen. In the end you should just remember that to succeed with trading penny stocks you must learn to make smart and strategic decisions over time, and if you can do this you should have no trouble eventually making a profit with penny stocks.

Author: Seth Lionni
Article Source: EzineArticles.com
Provided by: Gadget reviews

Tags: , , , , , , , , , , , ,

How to Trade Oil

January 7, 2010 · Posted in Stock Market · Comment 

There are many ways Investors can gain exposure to Oil ranging from Oil stocks, Exchange traded funds through to Futures contracts.

 

Crude oil is the raw material that is refined to produce gasoline, heating oil, diesel, jet fuel and many other petrochemicals

 

Capital Spreads offer exposure through spread betting on the price of the “West Texas Intermediate” (WTI) futures contract traded on the New York Mercantile Exchange (NYMEX) which is the most popular grade of crude oil that is traded.

What makes it move?

Geo-political Events

Whether it’s militants in Nigeria or Israel and Iran at each other’s throats any Geo-political tensions  in any of the oil producing regions will play a great role in the price of crude as supply can be upset.

Here are the world biggest producers of Oil along with the size of the reserves and their market share.

 

Country

reserves (bbl)

Share

1  Saudi Arabia

267

19.66%

2  Canada

179

13.16%

3  Iran

138

10.20%

4  Iraq

115

8.47%

5  Kuwait

104

7.66%

6  United Arab Emirates

98

7.21%

7  Venezuela

87

6.41%

8  Russia

79

5.82%

9  Libya

41

3.05%

10 Nigeria

36

2.67%

                   

1,144

84.31%

 

Production

42% of oil is produced by countries that belong to The Organization of the Petroleum Exporting Countries (OPEC) who are headquarted in Vienna.

According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel’s interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international  oil markets with a view to eliminating harmful and unnecessary fluctuations.

OPEC attempt to control the price of oil by increasing and decreasing output from its members.

If they want the price to go higher they will cut output and if they want it lower they will increase output.

OPEC meetings and decisions can be found on the getdealing.com event calendar.

OPEC MEMBERS

Algeria Africa

 Angola Africa

 Ecuador South America

 Iran Middle East

 Iraq Middle East

 Kuwait Middle East

 Libya Africa

 Nigeria Africa

 Qatar Middle East

 Saudi Arabia Middle East

 United Arab Emirates Middle East

 Venezuela South America

 

Global Growth Expectations.

The more the world economy grows the more demand there is for Oil which will drive prices higher. The less the world economy grows the less demand there is for oil sending prices lower. In recent year’s oil traders have started to pay particular attention to growth in China and India as these mainly manufacturing economies are heavily dependant on oil.

 

USD

Oil (like gold and other commodities) normally has an inverse relationship with the USD meaning when the USD weakens the oil price should move higher. If the USD falls then because oil is priced in $’s you will need more $’s to buy the same amount of oil.

 

Seasonal Demand.

Demand is generally highest during the summer and winter months. A very hot summer or very active driving season (for summer vacations) can increase the demand for crude oil and cause prices to move higher.

An extremely cold winter causes higher demand for heating oil, which is made from crude oil. This usually causes prices to move higher. Watch the weather in the Northeast, since it is the part of the country that predominately uses heating oil.

OIL Inventory Data

Every Wednesday afternoon the Energy Information Administration releases the US weekly oil and gas inventory figures which give an account of the stocks of oil and natural gas the U.S currently have in reserve. If the Inventory number is lower than the consensus estimate then the price of crude oil may  rise and if it is higher then the price should fall but this is not always the case.

Oil Inventory data can be seen live on the event calendar in getdealing.com dealing room along with the consensus estimate.

 

                     Watch for oil production cuts or increases from OPEC

We are a free resource for spread betters providing REAL-TIME analysis, news and data in a clear format to give you the best chance of profiting from spread betting.

Article Source:http://www.articlesbase.com/day-trading-articles/how-to-trade-oil-1682145.html

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

7 Steps To Your Own Stock Market Mission Statement

November 14, 2009 · Posted in Stock Market · Comment 

Before investing in the stock market and before getting married you must make it a point to sit down and write out a Mission Statement. If you dont, tax on wealth and death of health are inevitable. Here is what your stock market mission should look like (well tackle your Marriage Mission in another piece):

1. I Will Never Try To Time The Market: Timing the market is impossible you cannot get in at the lowest point and you cannot offload your holdings at the highest point so, forget about timing the market and just go with the flow and be satisfied about whatever investment decision you make.

2. I Will Not be Stubborn: The stock market is extremely volatile and in a constant state of flux. It is always in such a fluid state that you cannot afford to adopt a stubborn attitude towards the market or a particular stock. For example, if you are holding on to a stock for over 12 months and that stock is stuck in a small groove, and its industry trends point towards negative growth, then you must not hold on to the stock you must book your loss and exit the counter. A stubborn attitude is for mules, not for enlightened guys like you.

3. I Will Take Profits And Pay My Taxes: Profits never ever made anyone lose money, and the same goes for you. Booking profits is a healthy sign even if the stock you sold appreciates after you sold it hey, dont worry about it, because you had a good fling with it, had your fun and succeeded in coming out the relationship without making any babies or laying any eggs. Smile. Okay, taxes are important too dont forget to pay your taxes on what profits you make!

4. I Will Not Follow The Herd I Will Not Panic, I Will Not be Over-Exuberant: Youd have seen that many a time the markets are driven by a herd mentality: Theres some hot tip going around and half of America is buying that stock. But you dont do that Because hot tips can burn hands, legs and other important parts of your body. Think rationally and calmly If you follow the herd, you will get crushed in the stampede. Remember Enron?

5. I Will Not Get Emotional About Any Stock: You may fall in love with a stock or you may hate a company intensely whatever the case may be, do not act on your emotions. Act on research or on a recommendation from a professional.

6. I Will Trade Or Buy Only The Best Companies: Take a look and study the stock price movement of the best companies and you will find that these companies have rewarded their investors and traders with phenomenal gains, while the small caps and the penny stocks have made duds out of investors. So, either hang out with the best companies or get hanged by the duds its your choice.

7. I Dont Expect The Stock Market To Climb Up Daily: The stock market is like a roller coaster ride you cannot expect your shares to climb up continuously; price corrections are bound to happen. In fact, you must factor in price corrections in your mind and you must not panic if a correction sets in either the market or on a stock that youre holding.

This, then, is what your Stock Market Mission Statement must look like. Remember – playing the stock market is a volatile game and the only thing that is stationary out there in the market is the paper it would do you a world of good if you laid out your mission statement and played by your rules.

Author: Alan King
Article Source: EzineArticles.com
Provided by: How Electric Pressure Cookers Work

Tags: , , , , , , , , , , , ,

The American Stock Market

October 30, 2009 · Posted in Stock Market · Comment 

A stock is a legally binding symbol of ownership in a company. When you purchase a stock, you actually become the owner of a part of a company a share holder. Since one company can release a lot of stocks, the ownership is typically spread over hundreds or thousands or owners. Selling shares in a company is a way for that company to bring cash to the company. If you start up a new small company, you typically own 100 % of the shares yourself. When you need to invest a lot of money in necessary equipment, you can allow people to purchase parts of your company. This will provide the company with enough cash to buy equipment.

To gain any real influence over a company, you must own a lot of the stocks or work together with a lot of the smaller owners. Today, people often buy stocks not in order to gain control over a company, but as an investment. They hope for the value of the stock to increase over time. A company can also decide to give a part of its annual earnings to the stock owners. This way, you can make money from your stock without selling it.

To put it simple, a stock market is a place where stocks are traded, just like a fruit market is a place where fruit is traded. The New York Stock Exchange, the American Stock Exchange and Nasdaq are three important stock markets in the United States. Unlike the fruit market, it would be impractical for you to stroll down to the New York Stock Exchange and purchase a bag of stocks from a vendor. Stocks are instead typically bought and sold via a stock broker or through Direct Investment Plans and Dividend Reinvestment Plans. If you purchase stocks via a Direct Investment Plans or a Dividend Reinvestment Plans, you will not actually buy stocks at the stock market; you will purchase them directly from companies.

Wall Street is very important place in the history of the American stock market. During the 17th century, Dutch settlers in New York built a high fence to defend themselves from attacks. The wall only lasted until 1685, but the Englishmen continued to call the street near the former wall Wall Street. The history of the American stock market does however begin in Philadelphia, not in New York. The very first stock exchange in America was created in Philadelphia, in 1790. The first stock exchange in New York was created only two years later, but it didnt do as well as the Philadelphian stock exchange. In 1817, representatives from the New York stock exchanged travelled to Philadelphia in order to find the key behind the Philadelphian success.

The result of the trip was the creation of a more formal and disciplined New York Stock and Exchange Board. One of the more notable incidents in the history of the American stock market is naturally the stock market crash of 1929. During the early years of the 20th, vast amounts of money had been made on the booming stock exchange markets. This boom came to a rapid end when the stock market plummeted in 1929 and triggered the Great Depression in American.

Author: William Berg
Article Source: EzineArticles.com
Provided by: Wordpress plugin Guest Blogger

Tags: , , , , , , , , , , , , , , ,

The Problem is Simple…No One Taught Us How to Make Money

October 26, 2009 · Posted in Stock Market · Comment 

Like a lot of people, I have a college education.  Years ago I planned a career in corporate America and live the middle class American dream.  I was lucky, I fell into the trading business and learned about money.  It wasn’t on purpose, I didn’t suddenly decide that being a trader was a great idea…the job was offered to me.

During one the current recession, I have made one very interesting observation about the US population.  We don’t have the slightest idea on how to make money efficiently with a level of low risk.  We’ve forgotten the principle of the American dream.  It’s shocking

I have a friend who is a university professor and has found his salary cut back drastically and has decided he is going to start a restaurant.  Of course, it will take all of his savings and a hefty loan from a banking friend to finance his operation, and then there is the problem of running a successful restaurant. He knows nothing about restaurants, or making money, but a restaurant was the best idea he could come up with.  And he is going to risk his life savings and mortgage his future on a bet that he can make the thing work out.  I hope he does…

What’s wrong with this picture?  We are a country of technology and education, but the true sense of entrepreneurship we enjoyed in the past is fading.

Do you have a Plan B?  Sure, you can sell some fruity health drinks that promise everlasting life, sell berries to lose weight, or pester your friends to death with the latest MLM opportunity, complete with ads of successful MLMer’s driving Ferrari’s and living in mansions.  I think anyone who has every been involved in an MLM knows how the story usually works out.  It ain’t pretty, or cheap.

What wrong with learning a skill specifically designed to make money?

This is the point where I become completely baffled.  I trade, all I do is try to make money.  I don’t try to sell anyone, and my income is is not dependent on someone else buying the latest gizmo I am trying to hawk.  I have a distinct and specialized skill that is easily taught and readily learned and yet this business is often ignored.   Oh, some people might look into it a little bit, and usually get frustrated with the terminology or the fact that it may take a bit of learning, time and practice to get good.  But once you got it, baby, you become a money making machine.  A goose that lays golden eggs, yet few people will take the time to learn this relatively easy skill.

In my opinion, most people know more about their lawn than they do their money, and this recession is eating away the money they have.

It doesn’t have to be that way.  I just don’t understand

I write mainly about financial topics, specifically daytrading the ES and YM emini contract, and many of my more advanced techniques can be found at my blog, The Fractal Futures Trader.

I also write an ongoing commentary, which is a bit more opinionated, at The Fractal Traders Commentary

I encourage all to read the blogs and learn how to trade, as you can add $500-1000 dollars a day to your pocket book. Best of trading to all.

Article Source:http://www.articlesbase.com/day-trading-articles/the-problem-is-simpleno-one-taught-us-how-to-make-money-1379928.html

Tags: , , , , , , , , , , ,

Powered by Yahoo! Answers