Penny, For a Thought
They say, a penny stock saved is...well you get the idea. You are obviously investigating the notion of trading in penny stocks, or you wouldn’t be researching it. Let’s face it, if penny stocks were determined strictly by price, some of the largest companies in the world almost became “penny shares” during the first part of 2009. The Securities Exchange Commission is supposed to consider all stocks with a price per share of less than five dollars a penny stock. But in the realm of financial services there are many shades of gray, or in this instance pink. Pink Sheets, is an electronic quotation system operated by Pink OTC Markets, and displays quotes from broker-dealers for many over-the-counter securities. In simplest of terms, penny stocks are usually determined by three basic factors. They are, the price per share, the market that the stock trades upon and the market capitalization of the company from which the stock derives. If you are considering trading penny stocks, you should know that even these factors are up for debate, depending on which broker you use. Some brokerage firms will treat all stock from companies under a certain market cap as penny stock.
Companies that fall into the category of penny stock or “Pink Sheet”, do not need to fulfill any requirements (e.g., filing financial statements with the SEC) thus making them a risky investment. Because of their lax accounting and reporting guidelines, many feel “penny shares” are vulnerable to manipulation. I’m referring to the famous scam “pump and dump.” Where at times influential investors can pump up a stock, sell it for huge profits, then D-list the stock.
Worth the Risk
I would like to pass on some ideas and strategies, that with a slight mind set adjustment and a little training, you can reap big profits. I further contend that this can be accomplished on
a shoestring budget. I think most regular folk always saw the market as a playground for the big cats. That was until the influx of trading companies to the internet. So how much investment
capital should you have? To quote the investment companies disclosure, and I’m paraphrasing; “never invest more than you have to lose”. It is like gambling, make no mistake about it. That being said, I think with the following strategies, you can plan on investing a few hundred to a few thousand. Ideally, two to five thousand is an excellent starting point. If you keep an open mind, you will see for yourself, how the combination of these two systematic plans of action, can lead to enormous profits.
While it is true penny stocks are high risk, they can yield high rewards if you carefully research these investments. Make sure that you understand that it is easy to lose all of the money you have invested, but it is equally easy to make fast money with some smart planning and detailed technical charting. A substantial look into this market will show that a lot of these small companies are honest and have tremendous potential. So let’s say you found a way to insure you that penny stocks are the way to go. I think you can start to see the potential for large gains. I am going to provide you with a couple of penny sectors to get you started.
Hot Penny’s
Two Sectors Worth Looking Into
The first is an actual example that I made an astounding killing on. The “Nano Technology” sector is a great place to start. There are many Nano companies that already have financial backing and poised for tremendous growth. I’m not going to tell you which stock, because that would take all the fun out of researching for you. The other sector I would strongly suggest is “Clean Energy.” With all the attention clean energy is getting, the new commitment by our new administration, I’m sure there are small companies that are diamonds in the rough.
A small market cap usually relates to a small business, which unfortunately in this economic crisis period has a higher rate of total business failure. The fastest way to become a millionaire, short of discovering or inventing something, or hitting the lottery, is to make the right penny stock investment. Because they are usually from smaller and largely unproven companies, they can be purchased at bargain prices, literally for pennies. Again I must emphasize that you have to have an excellent technical platform, one that has candlestick charting, preferably, in order track the trends of these stocks.
I hope this has helped in your research. I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is access to some of the top trading systems available including Forex software, books, newsletters, and Forums. Also you will find the most up to date articles on Online Trading, including additional information on Penny Stocks Lead to Big Bucks. Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking
Wednesday, April 21, 2010
Online Options Trading For Your Future
Options Trading Offers a Great Future
The popularity of option trading has grown over the past couple of decades, mostly due to everyone having easy access to the internet. Like penny stocks, options appeal to small investors because the initial cash outlay is smaller than actually having to purchase the assets. It is for this reason that many go swimming in the option pool without first learning how to swim. Before they know it, they are in the deep end, treading water and going under. So before you venture into this high risk high rewards from of trading you really have to do your homework. In fact, many of the online brokers have their new clients show proof of option trading experience before allowing them to trade in options.
Like most things having to do with the market, options began as way that commodities could be assured of a future price. No one knows who came up with the concept, but to hedge their bets options were created. Remember, an option is a contract between a buyer and a seller that gives the buyer the right, BUT NOT THE OBLIGATION to buy or to sell a particular asset (the underlying asset) at a later day at an agreed price. What began more than 150 years ago at the Chicago Board of Trade, Kansas City Board of Trade, the Minneapolis Grain Exchange, and the New York Cotton Exchange, has evolved into the fastest way to make or lose a fortune.
The modern trader does not hold onto an option very long. In most cases the option gets sold the same day it was acquired. The secrets to finding the right asset to option are twofold. You must look for a stock or commodity that has a lot of movement, up or down doesn’t matter. Second, there must be higher than normal volume. If you are not properly trained or at least have some options market knowledge, you can lose your investment in an instant. I am of course referring to the American market where an option may be exercised on any trading day on or before expiration. A European option may only be exercised on expiration. There are several different styles of options available. This is just one of the many things you must know about to become a successful options trader.
Your Options Are Many
Types of options are
Exchange traded options which are:
1. stock options,
2. commodity options,
3. bond options and other interest rate options
4. stock market index options or, simply, index options
5. options on futures contracts
And...
Over-the-counter options:
1. interest rate options
2. currency cross rate options, and
3. options on swaps or swaptions.
I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is an abundance of articles and product information on Online Options Trading for Your Future. There is access to some of the top trading systems available including software, books, newsletters, and Forums. Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking.
The popularity of option trading has grown over the past couple of decades, mostly due to everyone having easy access to the internet. Like penny stocks, options appeal to small investors because the initial cash outlay is smaller than actually having to purchase the assets. It is for this reason that many go swimming in the option pool without first learning how to swim. Before they know it, they are in the deep end, treading water and going under. So before you venture into this high risk high rewards from of trading you really have to do your homework. In fact, many of the online brokers have their new clients show proof of option trading experience before allowing them to trade in options.
Like most things having to do with the market, options began as way that commodities could be assured of a future price. No one knows who came up with the concept, but to hedge their bets options were created. Remember, an option is a contract between a buyer and a seller that gives the buyer the right, BUT NOT THE OBLIGATION to buy or to sell a particular asset (the underlying asset) at a later day at an agreed price. What began more than 150 years ago at the Chicago Board of Trade, Kansas City Board of Trade, the Minneapolis Grain Exchange, and the New York Cotton Exchange, has evolved into the fastest way to make or lose a fortune.
The modern trader does not hold onto an option very long. In most cases the option gets sold the same day it was acquired. The secrets to finding the right asset to option are twofold. You must look for a stock or commodity that has a lot of movement, up or down doesn’t matter. Second, there must be higher than normal volume. If you are not properly trained or at least have some options market knowledge, you can lose your investment in an instant. I am of course referring to the American market where an option may be exercised on any trading day on or before expiration. A European option may only be exercised on expiration. There are several different styles of options available. This is just one of the many things you must know about to become a successful options trader.
Your Options Are Many
Types of options are
Exchange traded options which are:
1. stock options,
2. commodity options,
3. bond options and other interest rate options
4. stock market index options or, simply, index options
5. options on futures contracts
And...
Over-the-counter options:
1. interest rate options
2. currency cross rate options, and
3. options on swaps or swaptions.
I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is an abundance of articles and product information on Online Options Trading for Your Future. There is access to some of the top trading systems available including software, books, newsletters, and Forums. Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking.
Online Commodity Trading Strategies
The Oldest Market
Here in the U.S. it began more than 150 years ago at the Chicago Board of Trade with the first agricultural futures contract. In 1982 options on futures was introduced, and in the 1990's exchanges introduced electronic trading. Futures trading is now a 24 hour, seven days a week enterprise, and undoubtedly the main reason you are researching it. Like all financial instruments, the futures market is highly regulated, but not by the SEC. From crops such as corn or wheat, to oil, gold, and currency, commodities get traded on the futures market. Rice was undoubtedly the very first commodity traded at the original market of the Chinese.
The SEC administers and enforces the federal laws that govern the sale and trading of securities, such as stocks, bonds, and mutual funds, but they do not regulate futures trading. The federal agency that does regulate futures trading is the Commodity Futures Trading Commission. With limited
exceptions, the trading of futures must be executed on the floor of a commodity exchange. Similar to broker-dealers that are members of the National Association of Securities Dealers, Inc. or some other self-regulatory organization, all firms and individuals who trade futures with the public or give advice about futures trading must be registered with the National Futures Association (NFA).
Two Kinds of Commodities Traders:
Hedgers and Speculators
Commercial hedgers are corporations and sometime individuals, that seek to ensure the stability of a given commodity by taking a position in the commodities market. Take peas for example, and the hedger, a food processor who cans them. If pea prices go up the hedger ends up having to pay the farmer or pea dealer more. Because it is basically a cash commodity, to protect himself against higher pea prices, the processor can “hedge” his risk exposure by buying enough pea futures contracts to cover the amount of peas he expects to buy. Since cash and futures prices do tend to move in tandem, the futures position will profit if the price of peas rise enough to offset cash pea losses.
Speculators are the second major group of futures players. These participants include independent floor traders and investors. A speculator is a person, or more likely an institution, that purchases or sells the commodities based on factors other than simply analysis. Whereas investors will focus, by and large, on detailed analysis.
The Pro’s and Con’s of Speculating
Your Futures Can Be Prosperous
Since most individual traders are speculators, here is a list of some of the advantages and disadvantages of the futures market over other investment possibilities.
1. The possibility exist that a person can make more money faster in the futures market, because the speed of prices tend to change faster than stocks. Conversely, bad judgment can cause one to suffer greater losses than traditional investments.
2. Futures are highly leveraged investments. The trader only puts up about 15-20% as a margin, yet still being able to ride the full amount of the contract. Unlike stocks where at least 50% of its value has to be put up, and the investor pays interest on the difference between the margin and the full contract value.
3. For the most part there is no inside trading. Everyone has the same insiders information on the weather, for example. This is an open outcry market, very public, which insures a fair outcome.
4. Commission charges on futures trades are small compared to other investments, and the investor pays them after the position is liquidated.
5. Most commodity markets are very broad and liquid. Transactions can be completed quickly, lowering the risk of adverse market moves between the time of the decision to trade and the trade's execution.
Futures Software
Let us assume that you have some knowledge or you wouldn’t be researching the market. Any training you receive should be for technical analysis, or you are just wasting time and money. As far as software platforms, the following suggestions I strongly feel are necessary for any software to be useful.
1. It must be able to offer live streaming technical data. (Otherwise the program is merely educational)
2. The platform should defiantly include candlestick charting.
3. Visually it has to be large enough for all the data to be seen easily. (Many of the online brokerage’s technical data is to small to be useful)
4. It must be cost effective. (Most good systems can be purchased for between one and two hundred dollars)
These are just a few ideas for tools that you can utilize to increase your chances for success. I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is access to some of the top trading systems available including Forex software, books, newsletters, and Forums. Also you will find the most up to date articles on Online Trading, including additional information on Online Commodity Trading Strategies . Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking
Here in the U.S. it began more than 150 years ago at the Chicago Board of Trade with the first agricultural futures contract. In 1982 options on futures was introduced, and in the 1990's exchanges introduced electronic trading. Futures trading is now a 24 hour, seven days a week enterprise, and undoubtedly the main reason you are researching it. Like all financial instruments, the futures market is highly regulated, but not by the SEC. From crops such as corn or wheat, to oil, gold, and currency, commodities get traded on the futures market. Rice was undoubtedly the very first commodity traded at the original market of the Chinese.
The SEC administers and enforces the federal laws that govern the sale and trading of securities, such as stocks, bonds, and mutual funds, but they do not regulate futures trading. The federal agency that does regulate futures trading is the Commodity Futures Trading Commission. With limited
exceptions, the trading of futures must be executed on the floor of a commodity exchange. Similar to broker-dealers that are members of the National Association of Securities Dealers, Inc. or some other self-regulatory organization, all firms and individuals who trade futures with the public or give advice about futures trading must be registered with the National Futures Association (NFA).
Two Kinds of Commodities Traders:
Hedgers and Speculators
Commercial hedgers are corporations and sometime individuals, that seek to ensure the stability of a given commodity by taking a position in the commodities market. Take peas for example, and the hedger, a food processor who cans them. If pea prices go up the hedger ends up having to pay the farmer or pea dealer more. Because it is basically a cash commodity, to protect himself against higher pea prices, the processor can “hedge” his risk exposure by buying enough pea futures contracts to cover the amount of peas he expects to buy. Since cash and futures prices do tend to move in tandem, the futures position will profit if the price of peas rise enough to offset cash pea losses.
Speculators are the second major group of futures players. These participants include independent floor traders and investors. A speculator is a person, or more likely an institution, that purchases or sells the commodities based on factors other than simply analysis. Whereas investors will focus, by and large, on detailed analysis.
The Pro’s and Con’s of Speculating
Your Futures Can Be Prosperous
Since most individual traders are speculators, here is a list of some of the advantages and disadvantages of the futures market over other investment possibilities.
1. The possibility exist that a person can make more money faster in the futures market, because the speed of prices tend to change faster than stocks. Conversely, bad judgment can cause one to suffer greater losses than traditional investments.
2. Futures are highly leveraged investments. The trader only puts up about 15-20% as a margin, yet still being able to ride the full amount of the contract. Unlike stocks where at least 50% of its value has to be put up, and the investor pays interest on the difference between the margin and the full contract value.
3. For the most part there is no inside trading. Everyone has the same insiders information on the weather, for example. This is an open outcry market, very public, which insures a fair outcome.
4. Commission charges on futures trades are small compared to other investments, and the investor pays them after the position is liquidated.
5. Most commodity markets are very broad and liquid. Transactions can be completed quickly, lowering the risk of adverse market moves between the time of the decision to trade and the trade's execution.
Futures Software
Let us assume that you have some knowledge or you wouldn’t be researching the market. Any training you receive should be for technical analysis, or you are just wasting time and money. As far as software platforms, the following suggestions I strongly feel are necessary for any software to be useful.
1. It must be able to offer live streaming technical data. (Otherwise the program is merely educational)
2. The platform should defiantly include candlestick charting.
3. Visually it has to be large enough for all the data to be seen easily. (Many of the online brokerage’s technical data is to small to be useful)
4. It must be cost effective. (Most good systems can be purchased for between one and two hundred dollars)
These are just a few ideas for tools that you can utilize to increase your chances for success. I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is access to some of the top trading systems available including Forex software, books, newsletters, and Forums. Also you will find the most up to date articles on Online Trading, including additional information on Online Commodity Trading Strategies . Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking
Tuesday, April 20, 2010
Online Options Trading Offers a Great Future
The popularity of option trading has grown over the past couple of decades, mostly due to everyone having easy access to the internet. Like penny stocks, options appeal to small investors because the initial cash outlay is smaller than actually having to purchase the assets. It is for this reason that many go swimming in the option pool without first learning how to swim. Before they know it, they are in the deep end, treading water and going under. So before you venture into this high risk high rewards from of trading you really have to do your homework. In fact, many of the online brokers have their new clients show proof of option trading experience before allowing them to trade in options.
Like most things having to do with the market, options began as way that commodities could be assured of a future price. No one knows who came up with the concept, but to hedge their bets options were created. Remember, an option is a contract between a buyer and a seller that gives the buyer the right, BUT NOT THE OBLIGATION to buy or to sell a particular asset (the underlying asset) at a later day at an agreed price. What began more than 150 years ago at the Chicago Board of Trade, Kansas City Board of Trade, the Minneapolis Grain Exchange, and the New York Cotton Exchange, has evolved into the fastest way to make or lose a fortune.
The modern trader does not hold onto an option very long. In most cases the option gets sold the same day it was acquired. The secrets to finding the right asset to option are twofold. You must look for a stock or commodity that has a lot of movement, up or down doesn’t matter. Second, there must be higher than normal volume. If you are not properly trained or at least have some options market knowledge, you can lose your investment in an instant. I am of course referring to the American market where an option may be exercised on any trading day on or before expiration. A European option may only be exercised on expiration. There are several different styles of options available. This is just one of the many things you must know about to become a successful options trader.
Your Options Are Many
Types of options are
Exchange traded options which are:
1. stock options,
2. commodity options,
3. bond options and other interest rate options
4. stock market index options or, simply, index options
5. options on futures contracts
And...
Over-the-counter options:
1. interest rate options
2. currency cross rate options, and
3. options on swaps or swaptions.
I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is an abundance of articles and product information on Online Options Trading Offers a Great Future. There is access to some of the top trading systems available including software, books, newsletters, and Forums. Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking.
Like most things having to do with the market, options began as way that commodities could be assured of a future price. No one knows who came up with the concept, but to hedge their bets options were created. Remember, an option is a contract between a buyer and a seller that gives the buyer the right, BUT NOT THE OBLIGATION to buy or to sell a particular asset (the underlying asset) at a later day at an agreed price. What began more than 150 years ago at the Chicago Board of Trade, Kansas City Board of Trade, the Minneapolis Grain Exchange, and the New York Cotton Exchange, has evolved into the fastest way to make or lose a fortune.
The modern trader does not hold onto an option very long. In most cases the option gets sold the same day it was acquired. The secrets to finding the right asset to option are twofold. You must look for a stock or commodity that has a lot of movement, up or down doesn’t matter. Second, there must be higher than normal volume. If you are not properly trained or at least have some options market knowledge, you can lose your investment in an instant. I am of course referring to the American market where an option may be exercised on any trading day on or before expiration. A European option may only be exercised on expiration. There are several different styles of options available. This is just one of the many things you must know about to become a successful options trader.
Your Options Are Many
Types of options are
Exchange traded options which are:
1. stock options,
2. commodity options,
3. bond options and other interest rate options
4. stock market index options or, simply, index options
5. options on futures contracts
And...
Over-the-counter options:
1. interest rate options
2. currency cross rate options, and
3. options on swaps or swaptions.
I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is an abundance of articles and product information on Online Options Trading Offers a Great Future. There is access to some of the top trading systems available including software, books, newsletters, and Forums. Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking.
Forex Trading Success...a Timetable
I am sure you have seen the increasingly vast expansion of infomercial on the latest get rich schemes, currency trading. Are people getting wealthy trading currencies? Of course they are. They have been doing it for years. Before the advent of online trading currency trading was mostly the playground for large banks, corporations and hedge fund managers. Because of automated software platforms currency traders cannot only compete with the pros, they can use these robots 24 hours a day. Unlike stocks or futures, there's no centralized exchange for forex, so all transactions happen via phone or electronic network. That electronic network path is the reason for the current astounding day trader like mentality, and also the reason that perhaps you are reading this in the first place.
With the right platform Forex day trading can seem almost like a vacation for the trader who is use to dealing with other financial products in other markets. Not only are there less governing bodies to deal with, it means less binding rules and regulations to pay heed to when making your trades as well. For instance, in the Forex world, there is no such thing as "insider trading." If you know something either harmful or beneficial to the exchange rate of the Euro, then feel free to capitalize on that information at will. The equivalent information at the stock exchange, might very well lead to an investigation by the SEC. Always keep in mind that 95% of currency trades are speculative.
Your computer allows you to tap into this market, and take advantage of fact that it does indeed trade 24 hours. With average daily turnover of US$3.2 trillion, forex is without a doubt the most traded market in the world. Starting Sunday 5:00 P.M. ET to Friday 5:00 P.M. ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York. So trading currencies is unlike other financial markets, because investors can respond immediately to currency fluctuations, whenever they occur - day or night.
So what is an average timetable to understand and successfully trade currencies? It will depend on how hard you are willing to work and the kind of tools you are using. Remember we are trading currency, which is vulnerable to political and economic news, so all of the platforms have access to view up to the minute news headlines and market commentary. The proper program will make it virtually impossible for major trading blunders to occur.
These programs can be set to scan the market looking for the origins of profitable trends. Once it has found what it deems as a reliable trading opportunity, it invests accordingly. The fact that because they are entirely automated and digital, these robots can react to changes faster than a human trader, and thus know exactly what to look for. It will follow the trade’s performance along in the market step by step minute by minute with the purpose being of keeping you on the money earning side of that trade for as long as possible. You are always shielded from losing your investment because, once the market fluctuates out of your favor as it will inevitably and eventually do, the program trades away the now bad investment. They not only offer live streaming technical data, but you can view real-time prices in 37 currency pairs and spot gold. Also you can execute market orders with just one mouse click and choose from eight available order types.
To be affective the platform should meet at least a minimum of three qualifications.
1. It must be able to offer live streaming technical data. (Otherwise the program is merely educational)
2 Visually it has to be large enough for all the data to be seen easily. (Many of the online brokerage’s technical data are too small to be useful)
3. It must be cost effective. (Most good systems can be purchased for between one and two hundred dollars)
Thus the timetable is ultimately in your hands. If you get the right training and a proper platform, your time will be well spent.
I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is access to some of the top trading systems available including Forex software, books, newsletters, and Forums. Also you will find the most up to date articles on Online Trading, including additional information on Forex Trading Success...a Timetable . Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking.
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