Day Trade Penny Stocks is a good course and if you are interested in making really consistent profits on penny stocks, this is one package you can't afford to miss.
As always, If you don't like the Day Trade Penny Stocks review you can get your money back within 60 days, just send email to the tech support team (or to Clickbank directly) and your sale will be refunded.
Before we can enter the penny stock arena we have to a clear grasp of what it is we are dealing with. Investing and trading in penny stocks is potentially highly rewarding but also tremendously risky.
If you still want to invest in and trade penny stocks you should start out with a small amount that you could afford to lose. Okay, now that I have scared you and made you regret getting exited about penny stocks in the first place let me leave you with some optimistic words.
NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk.
Instead of all the penny stock services that give you black-box picks, this course teaches you how to find those trades oyurself so you make money independently.
These guys have proof of very good profits on these stocks and they are very serious in what they do.
You would be hard pressed to find a stock trading on one of the larger exchanges that had the potential to double in a month. Without a basic definition of the stocks we will be investing in we will make countless mistakes out of confusion and lack of direction. The Eligibility Rule dictated that all non-reporting OTC companies already trading on the OTC market would have to report their financial information to the SEC, banking, or insurance regulators in order to meet eligibility requirements.
However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Now keep in mind that if a stock existed which had the potential to double in a month it would also have the potential to lose all of its value in a month. You will have to look within yourself and discover if you have the ambition and persistence to learn everything there is about penny stocks. While there are many stocks that trade for a cent and when traded correctly can yield vast profits, the definition is broader.
At this point our only definition of a penny stock is a stock which trades either on the over the counter market or on the pink sheets.
An OTC security is any stock that does not trade on Nasdaq or a national securities exchange.
A phase in period was set for all trading companies starting in alphabetical order from the beginning of July 1999 to June 2000. The book is written for people who have already decided that they want to invest and trade penny stocks. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk.
But what if you decided that knowing the huge risks you were about to undertake you still wanted a crack at buying stocks that could double your money in a month. This book should prove to be more than enough ammunition to beat the odds and discover the right next penny stocks.
The only other parameter we will use to define a penny stock is that it must be trading under a dollar at the point we buy it. OTCBB stocks include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts and Direct Participation Programs. I believe that penny stocks, like other financial and business ventures, require an enormous effort and hard work.
You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. There are many penny stocks with share prices in the dollar range and a market cap of over a few hundred million dollars, sometimes even equalling a mid cap in the price of their market valuation. We might chose to hold a stock as it climbs above a $1 but we will never consider a stock over a $1 to be a penny stock for our purposes. We will emulate the entrepreneur by learning everything there is to know about penny stocks and the market they trade in.
By labelling any stock trading under $5 a penny stock they help separate themselves from what they see as highly risky securities. In order to do so successfully we will analyze the penny stock market from the ground zero. While both definitions are accurate four our intents and purposes we will define a penny stock as any company trading on the over the counter market. This system enables anyone form the largest firm to the smallest investor to know how many trades are taking place in a stock, the direction of the trades, buys or sells, and the volume in real time. If the company did not report in that 30 day grace period the stock was delisted from the OTC and moved to the pink sheets.
But once they do experience a moment in the spotlight you will see many, sometimes thousands of investors, rushing to buy the stock.
Our definition of a penny stock will eliminate stocks trading under a dollar on the New York Stock Exchange or stocks trading for .50 on the Nasdaq Small Cap market.
But since the float of the stock might only consist of 1,000,000 shares there will not be nearly enough shares for all of the buyers. The past performance of any trading system or methodology is not necessarily indicative of future results. The reason we will not consider those stocks to be penny stocks is because more often than not a stock trading for under a dollar on one of the larger exchanges will soon be delisted due to dire troubles in its business. The Market Makers will want to buy and sell the stock since they make their money in stocks experiencing large amounts of volume. When I first started investing in penny stocks three years ago I lost 80% of all the money in my account within the year. But the slim percentage of companies that do beat the odds can experience dramatic growth in their stock prices of upwards of 10,000% in a year. A stock trading under a dollar on a major exchange most likely once traded way above that price and now due to either mismanagement or external factors is in financial troubles and headed for bankruptcy.
They will set bid and asks for the stock hoping to be able to buy and sell the volatile stocks. But the only way for them to keep up with dramatic surge in volume will be to raise their prices as much as they need to in order to buy stocks from the public. I have seen many stocks issue positive news and then have the price of their stocks double the same day. The floats were often small and the investors felt that the stock was worth many more times than what they paid for it. Or another Market Maker might enter the fray and realizing how much of a demand there is for the stock he will raise his bid to .27 hoping to buy up all the shares available.
I have also seen stocks like EPWN move from .09 to $8 in four months on a steady release of positive news.
The Market Makers make money regardless of the price of the stock since they will always sell it for less than they buy it and buy it for less than they sell it. He might be convinced that the stock will soon be trading at .30 due to the high demand building up. The Nasdaq has very strict qualifications for letting a company list its stock on its exchange.
If they sense that the availability of shares is drying up they will be forced to move up their bid so they can also buy stocks to resell later on.
Once their share price falls and stays below a certain price thresh hold for an extended period they are removed from the Nasdaq and then resume trading on the OTC market.
If you are the only sell that day and there have been no buys the Market Maker will not be in a rush to buy your shares since he will most likely be stock with the shares for a while.
Note that some penny stocks may have plenty of activity and volatility on a day to day basis, but it can always dry up overnight. Look at average trading volumes over a longer time frame, to make sure that the stocks on your Watch List meet your needs.Requirements of Penny Stock InvestorsYou should not get involved with day trading unless you are able to effectively monitor your holdings and can commit with the proper mind set and outlook. Otherwise, you may not be able to benefit from such a trading methodology.You need to be able to check the prices of stocks on a moment's notice, and get an accurate and up-to-the-minute quote. When day trading, you may need to check stock prices frequently, possibly watching their prices all day. Using a computer it takes only a few minutes each time, you can get current prices, and can alter or submit new orders on-line after checking the penny stock's activity.Most of all, you need patience. Although day trading in penny stocks is probably the quickest profit and loss method in the financial world, patience still comes into play. The best day trading strategies involve often going a week or so without a trade, because you must wait to get the best prices. Impatience immediately negates the effectiveness of the day trading strategy.Finally, you need a strong stomach.
You should understand that day trading in penny stocks can result in one week gains that are monumental, or can set you up for a loss. Whether making a big profit or taking an ugly loss, you should be able to handle both the good and bad stress that will come with this method of trading. Otherwise, you may make moves for the wrong reasons and compromise your objectives.What Day Trading IsDay trading is simply an attempt to capitalize on short term fluctuations in stocks.
Do this a few times and you are looking at a highly successful investment strategy.The downside of day trading comes into play when you buy an issue and it drops in value.
This becomes less of a concern for traders who have more assets at their disposal, because while only a portion of their money is temporarily tied up in a stock that has fallen in value, the rest of their portfolio could be actively used.Now, let me tell you how to take advantage of day trading without significant risk, and with maximum profit potential.
If you are going to begin day trading, read this section a few times through and adjust your own investment style accordingly.Goals of Day TradingThis is very important if you intend to be successful at day trading. In the long run, you would likely make more money by grabbing the 25% gains again and again, instead of holding out for the larger returns.Effective Strategies and ConsiderationsThe first consideration of this trading method compared to others is that you will be taking commissions more frequently. You can read all about penny stock brokers, and get my list of the top ones earlier in this site.With penny stocks, you may often find that a buy or sell order goes partially filled.
To avoid this, keep track of your orders during the trading day - you may pick up a portion of your order at the price you want, then have to adjust the purchase or sell price to make sure you get the rest of the order filled.
Changing an existing order to get all the shares you want on one day, instead of over two or three days, means that you will only be subject to one commission.The beauty of day trading is that company fundamentals and overall market action become less significant. You are playing the day by day fluctuations instead of hoping the market will rise or the company will increase its earnings. There is a very different stock price outlook if the number of bid shares vastly outnumber the ask shares, or vice-versa.
In other words, if there is a large level of demand, the price will likely solidify at that level and begin to climb, unless there are enough shares for sale to meet the demand.When getting a stock price quote, look at the number of bid lots and ask lots to get an idea of the demand and supply.
This will give you a relatively accurate indicator of the direction the penny stock price will travel in the day, and perhaps throughout the following few days. Use the bid lot and ask lot volumes to help you come up with a price range that the penny stock will trade within.Day trading will prove most effective when you trade in penny stocks that you have been watching for a long time. This is not a requirement for success, but rather an advantage.Hedging and Averaging DownAs a more advanced strategy, you may want to incorporate hedging into your day trading practices.
All about binary options|
What is management consulting
What is options trading in indian stock market