Penny Stocks Pick

(PRWEB) August 17, 2011

Gold and silver is becoming attractive to most consumers who want something tangible to invest in rather than an idea that could go down flaming with the stock market. This is why buyers are rushing to penny auctions. In the past few months, several reputable penny auction sites, like HappyBidDay.com, have started to auction off gold bars and sliver bars for just pennies on the dollar.

Since late 2008, the value of gold has doubled, according to the Boston Globe, and throughout history, gold has always been the most popular investment of all the precious metals. As the United States economy, stock market and government debt has taken quite a turn, investments in precious metals, specifically gold and silver, have increased.

Just like Bob Dumont of New Hampshire, investors and buyers of all economic statuses are flocking to this modern gold rush: ?I just keep seeing it going up, and all the speculators keep saying it?s going to go up … and probably even more,?? Dumont said. ?I missed the boat when Microsoft?s stock was low. I missed the boat when Apple?s stock was low. I?m not going to miss the boat for gold.??

Although the focus might be on gold right now, the International Business Times is noticing a similar situation developing in the silver market. Standard Bank said, ?If gold should come off in the short term, we could see silver hit harder.?

Because bullion bars cannot be purchased over the counter in the US like in other countries, penny auctions have taken advantage of the increasing value of gold and silver as well as the growing demand. Generally, these penny auctions feature gold bars or silver bars that are between 2 grams and 1 ounce because they?re harder to come by than gold coins or silver coins. It?s best to find sites that offer gold bars that are .9999 fine, (which according to GEM Affair, means each bar is 24 karats containing 99.9 % pure gold) or pure silver bars marked .999 fine.

Following HappyBidDay?s lead, you?ll start to see more penny auctions popping up that feature gold bars and silver bars, and some are even beginning to deal exclusively in precious metals. If you?re looking to follow the trend of the increasing value of gold and silver, or you?re simply worried about the decreasing value of paper currency like millions of other Americans, try bidding on some specialty bars at a penny auction site that will save you a lot of money and be a great investment in return.

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Question by Jeffersons: Is penny stock investing more profitable long term or short term?
Short term to me is like a couple of weeks or maybe even days…Long term to me is keeping it for about a year or 2 years. In relation to Penny Stocks which route would be more profitable.

Best answer:

Answer by Gundersen
You can compare penny stock to technical analysis, both things are extremely difficult to master, but if you get the hang of it, it is way more profitable than long term investing.

When short term investing, you are more venerable for unexpected new, which has a bad influence on the value of the stock. When holding a long term position, the unexpected good and bad occurrences will even out, and you have better time to plan your exit.

Add your own answer in the comments!

In order to be successful at penny stock investing, you need to use a system that provides stock market alerts, updates, and research capability to aid you in your judgment. But before you download a stock trading software, you need to consider the following features: proven track record, stock alert frequency, method of sending you stock alerts, and profit potential.

Uncovering the best available penny stocks isn’t easy and can be bewildering at times, so it’s always best to have all the help and guidance you need when conducting research and trade strategy. Successful stock trading takes time, patience and serious research. You need to monitor the stock market everyday, subscribe to numerous newsletters and join numerous message groups.

In these trying times, investing in cheap stocks can be worth while although on the surface, it seems difficult to play. It may be one of the most neglected trading instruments in the world but your cheap over the counter stocks is a potential gold mine, if only you know how to play the game correctly.

A friend of mine used his retirement check to buy cheap stocks. He kept his investment for a while and at the same time monitored his trades as well as market movements everyday. He also made plans and research. When he noticed that the current price has doubled since he first bought the penny stocks, he sold his stocks gaining big profits. ‘I have dug a goldmine’, I remember him telling me.

I expressed to him my interest in penny stocks investment and he gave me some sound advice on how to avoid money losses. He told me that the dangerous mistakes that stock market rookies commit are: failing to learn the stock market basics, trading in a stock without conducting a research on the company, and putting large money at risk in a single trade.

Indeed penny stock investing can be a dangerous game and success is not guaranteed, but if you put it time and effort on researching your trades and comprehending the overall stock market game, your chances of favorable outcome is not impossible.

So, begin digging your goldmine now.

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Why should the rich people have all the fun? The small investor or trader can even seek out huge returns too…if they know how.

One of the best methods for forecasting fluctuations in price is Technical Analysis. However, because it is difficult to track changes in fractions of a penny, there simply isn’t enough data to be able to analyze. Therefore, you have to be very cautious and careful while trading penny stocks.

Price hype is one of the biggest forces that drive penny stocks. Whether it’s online in discussion forums or chat rooms, or offline with publicity and press, hype can cause major swings in penny stock prices.

Are you looking to trade penny stocks to earn a good return on your investment? Penny stock trading if done by applying the basic essential knowledge can be profitable for some, but it can also be a money-losing experience for an amateur investor.

What should you watch for when you trade penny stocks? What are some strategies that professionals and experts use when dabbling in the penny stock trade? These are some of the questions that need to be answered first before entering into a penny stock trade.

One technique that some experts who trade penny stocks implement is to focus on a particular stock. Get to know the stock inside and out; that is, get to know the company behind the stock, any news about that company, and anything else that might affect the stock price. Target one stock, listen to the buzz, and see how the stock responds. The louder the buzz gets, the larger the potential for a big price swing.

Many people who trade penny stocks are small investors who have a very small amount of investment as their capital. These people trade penny stocks because it gives them more shares for the money.

Where they might be able to buy dozens of shares in major exchanges such as the New York Stock Exchange, the Bombay Stock Exchange and so on, they can buy hundreds when they trade penny stocks. However the risk of loss is also much bigger. It’s almost closer to gambling than investing. The money used is strictly risk capital. Once the money is gone, it’s gone and you end up losing the game.

Another class of people that trade penny stocks are amateur investors who use the buy and hold strategy. They purchase a stock and hold it for long periods of time, in the hope that the stock will skyrocket at some point in the future and they will profit considerably from the price movement. Unfortunately, this strategy hardly ever pays off in the way that the investor had hoped. In the long-term, the stock could end up being a complete loser.

Trading penny stocks can be a profitable business, and even fun way to invest. It certainly isn’t a traditional method of investing, and is unlike old standbys such as bonds and mutual funds. However, trading penny stocks isn’t for all people. 

You should have a high tolerance for risk, a willingness to analyze every single price movement of your penny stock, and some intestinal fortitude. Have fun with penny stock trading, but don’t expect to stumble into the next Wal-Mart for pennies on the dollar.

And remember, as with anything else in life with high potential for gain there is also high potential for loss. Do your homework, follow your rules, and plan to prosper.

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Article by Al Villa

How much do you know about penny stock investing? Perhaps you have tried trading in the market a few times, simply to see what the results would be. If you were unsuccessful, perhaps all you need is a few practiced tips for reducing your risk in this perilous investment vehicle. There will always be risk involved, no matter how practiced and careful you are, but twisting the odds in your favor can certainly help you gain a greater momentum as you seek to come out with a profit from penny stock investing.

Apart from finding the right company to invest in, you must have an entry and exit strategy in penny stock investing to get you in efficiently and back out when the return is at its highest value. Remember, penny stocks are volatile. They move up quickly, but will drop just as fast. The amounts you are trading are low, so consider percent-returns on your investment. For example, if you purchase a stock at .10 and turn around and sell quickly for .12, you made a 20% gain on your initial investment. The opposite is true as well-a purchase at .12 and a sell of .10 is a loss of 20%. If you did so with ,000, your loss would be 0. Keep your stops close, and if you should get stopped out, it’s time to make your move to another opportunity.

How did you discover the stocks you invest in? A majority of people who participate in penny stock investing found the companies they now invest in via a mailing list. This can be risky because insiders can load themselves up on shares, pump out company newsletters, and while subscribers buy, insiders sell. It is easy to see who the winner is here. To avoid having this happen to you, subscribe and simply be an observer for a while. By tracking investments, you will quickly determine if the company is scrupulous and giving their subscribers great opportunities or not.

The final general tip that can be given in regards to penny stock investing is to never invest greater than 20% of your whole portfolio in penny stocks. If you put an excessive amount of capital at risk, you are increasing your odds of losing what you cannot afford to lose. However, if the 20% you invest grows, you will have a return rate that is healthy with a far lower risk. Penny stock investing is risky no matter which way you approach it, so going into with useful tips to draw from will increase your chances of success.

My name is Al Villa. I am not a Stock Broker, Analyst, or some kind of guru. I am just a person that has been on the internet since the beginning. What you read here is from my experience. For a long time I did it the hard way. What I have learned in the school of hard knocks I share with you. You can use this or any article any way you choose as long as you share it in its entirety. To see more of my articles click here Penny Stock Profit

About the Author

I am not a Stock Broker, Analyst, or some kind of guru. I am just a person that has been on the internet since the beginning. What you read here is from my experience. Penny StockProfit

Question by Aaron W: Penny stock investing…is this a good idea?
First, a quick background. I’m a college student and my knowledge of investing in stocks is limited to the few economics and finance courses I have taken. Anyway, I have about $ 7,000 just sitting in a savings account which I have been accumulating since I was a teenager (I practically save all my money). I have no need for that much liquidity (my parents pay my tuition and for my car and tell me not to get a job while in college because it’ll mess with my academic performance) and wanted to see if the following is a feasible idea, or if I’m just a moron.

I follow a lot of different stocks, some obscure ones. But anyway what if I were to, for example on a whim, buy about 100,000 shares of green gold ray energies stock (GRYE) for $ 0.05 a share for $ 5,000 total. Hold onto it for a year and some change to avoid the short term capital gains tax, and sell all my shares at some point in the future when the stock price is significantly higher, say $ 0.50 or more.

I know the point of investing is to diversify, “stay in it for the long run”, etc… But would this be a decent idea? Keep in mind, I have no need for all $ 7,000 of my money at this point in time, and probably won’t until I graduate in about 2 years. I suppose I could start saving for retirement now, or do many more intelligent things with my money…but I just want to know if this would work!

Best answer:

Answer by Ninja grape juice
I would not do that.

Let’s pretend that the stock has a 50/50 chance of going up or going down on a given day.

If it goes up by one cent, you will make 100 000 cents or 1000 dollars. If it goes down, you will lose 1000 dollars. That is 20% of your total investment, which makes this a hypervolitile stock. You will either win big or lose big if the stock makes the smallest possible move.

Lets look at another problem. Stocks that sell for 5 cents a share are priced that low because there is something drastically wrong with them. Expecting a 5 cent stock to increase in value to 50 cents is extremely unrealistic.

A third problem is that the stock is also quite likely to tank and be worth 0.00 dollars, or do a reverse split meaning that you will have 1000 shares worth 10 cents each, leaving you with 100 dollars on your 5000 dollar investment.

You would be better off buying a blue chip company that you are sure will not tank in the coming months, and that can produce dividends. If you want a small company with growth potential, it is absolutely the wrong time to buy.

What do you think? Answer below!

For any individual new to investing in penny stocks, you ought to initially be made aware of the disparities among these micro-cap stocks and the much more standard blue-chip and mid-cap assets. In contrast to purchasing shares in a large, steady company like Ford or Ibm, you’re dealing with speculative investments.

Penny stocks basically trade for pennies per share, or as much as a handful of bucks. The good thing about penny stocks, needless to say, would be the fact sometimes they will ‘grow up’ and become mid-cap stocks, developing in valuation hundreds of times over and helping to make many individuals very rich.

With penny stocks, also referred to as micro-caps or juniors, you will notice considerably greater price unpredictability, and thus greater and faster gains and losses in asset values. It really is simply this specific unpredictability which will attracts buyers towards the junior markets, as one great find could possibly earn you many hundreds times what you might actually produce within the bigger markets.

Of course, there’s additional risk than purchasing bonds, blue chips or defensive stocks – although this extra risk is tempered with the chance for generating the large profits.

A good number of penny stocks, but not all, tend to be resource or science businesses which originally marketed shares in an effort to acquire funds for exploration or perhaps product creation plans. Most of the corporations have huge financial debt loads and therefore are certainly not making more money than they are giving up.

Even so, it’s the possibility of a major, as well as minor accomplishment in their quest very often incites extraordinary price climbs, and this also is where their particular value lies.

Profit likelihood

There are lots of tips on how to make money from penny stock investment strategies.

Promotional Stocks – Most of these issues may or may not include a lot of actual value. Promoters develop fascination with most of these stocks so that they can force share prices a lot higher. The promoters possess great numbers of shares and so they make more money the more expensive the share price goes up. Ultimately, they sell their very own holdings into the promotion and crank out significant individual profit. Chances are they proceed to the next venture, leaving the original stock and all its buyers at the rear. Without the function with the promoter, the promotional issue rapidly comes crashing down.

These are the basic type of stock investor see horror tales about, due to the fact many people suffer a loss of a good deal of money when they’re unsuspecting concerning promotional ploys. However, getting in on a promotional stock at the beginning of its life cycle, and keeping an eye on the activities of the promoter can be quite, very advantageous. It really is just like having a full time stock promoter doing everything in his power to obtain the share prices of the stocks you possess to go through the roof, and traders who get involved early can go along for the ride!

Technical Precursors – Often technical analysis can easily reveal patterns within the trading cycles of penny stocks. Occasionally these patterns demonstrate outstanding buying opportunities, in which the underlying stock features a great probability of turning up powerfully, and merely a minimal possibility of declining in value.

Furthermore, there are sometimes scenarios in which a number of positive technical indications mix simultaneously to uncover that an issue is incredibly apt to boost strongly in price for a minimal time frame, implying that the particular issue has excellent investment capability.

Fundamental Strength – Fundamentals contain such requirements as earnings, debt load, assets, and many more. It was long considered that earnings ended up being the main motivator guiding share prices, however it has since been disproved because it pertains to penny stock businesses. Rather, finding the best medium to long term investment possibilities has to be carried out by exhaustive research of company financial statements. Investors need to get involved with the companies which are generating the most cash, possess the more effective supervision, and also have improving trends in most elements of their operations. At the same time, industry comparisons and the study of crucial economic percentages provide signs regarding which companies tend to be destined for increased share prices.

Appropriate fundamental evaluation of penny stock companies will generally show that there are about a few outstanding investment opportunities out of every one hundred companies reviewed. These 2 or 3 outstanding corporations typically represent much better investments than 90% of stocks on the large-cap markets like the Nyse.

Undervalued Situations – Sometimes businesses watch their stock price fall substantially. You will find situations in which this reduction in price has little to do with the base fundamentals, and even more to do with elements such as general market weakness, interest rate increases, or others.

Opportunity is available in such situations since the stocks are often ‘unfairly valued’ and a recurrence to far more realistic prices is expected. You’ll find quite often cases when businesses have an overabundance of cash on hand per share than their stock price, or even have price to earnings quotients as low as 5.0. While there is much more to unveiling the top undervalued scenarios, this is the groundwork powering the theory.

Minimized Downside – Often the mixture of technical analysis and undervalued situations can easily expose penny stock companies that have huge upside possibilities, and still have an extremely reduced possibility of decreasing in value to any substantial level.

These type of ventures are wonderful options for penny stock shareholders that happen to be much less risk adverse.

Particular Notes Regarding Penny stock Organizations

Penny stock companies modify their own brands much more often as compared to other publicly traded corporations, and are also subject to far more stock-swaps and consolidations. In any of these situations, your stocks inside your portfolio will likely be immediately substituted for the appropriate stock by your stock broker and notice will be sent to you.

As an example, if you held five thousand shares of EXO and then for every 5 shares you were to get 2 shares of LOR, you’d discover your account holdings re-adjusted to reveal two thousand LOR which can be traded as normal. You’ll no more have the five thousand EXO.

On rare occasions, a penny stock company can be delisted. Therefore the stocks won’t trade on the exchange, and if the business does not get listed on a different exchange or re-instated later on, you might be subject to a loss of capital equal to 100% of the complete investment. Nevertheless, this is a rare occurrence, and there are pretty straight forward ways to shield yourself against it which are periodically talked about with your broker.

Question by YoursTruly: What is a good penny stock reference site that doesn’t have sign up requirements and has legitimate info?
I want to look into penny stock investing but I want to know all the information surrounding it from a sound, legitimate place.

Best answer:

Answer by Jerry
This is not a good idea. Penny stocks are a challenge for a seriously experienced investor. A novice is almost certain to lose.

Most penny stocks are cheap for a reason. Lots of very damaged companies. Some outright scams. No analyst estimates or recommendations, so a real lack of sufficient information.

Close to 100% of penny stock advisories are scams. Look up the term “pump and dump” because that is what most are attempting.

Read. Study. Take a class. Learn to invest. Avoiding obvious mistakes is so important. Here are a few classic investment books for your consideration. Two easy reads. One challenging but worth the effort.

One Up On Wall Street – Peter Lynch
A Random Wall Down Wall Street – Burton Malkiel
The Intelligent Investor – Benjamin Graham

Give your answer to this question below!

Stockguy22 talks to Tom who wants to invest in a bulletin board that he learned about from his brother in law

Article by David Newman

Before you you get involved with penny stocks be sure you know what a penny stock is and how to proceed. Penny stock investing can be a lucrative endeavor only if you do your research and supply the effort.There is actually no hard and fast definition for a penny stock. Some describe it as stock selling for less then a dollar while others say under five dollars. You will find some who only consider those traded in the “pink sheets” while others include the whole OTC market.

If a stock trades at or below five dollars per share and is traded in the “pink sheets” or on NASDAQ it is considered a penny stock according to the the Securities Division. An actual penny stock will not have noteworthy service history and it will have under fourmillion dollars in net assets.

Now let’s say a company is doing real business, such as manufacturing, has inventory and equipment as their assets and even though their shares are low priced they are not considered a penny stock by the Securities Division.

Penny stocks are traded in the over-the-counter (OTC) market, not on the stock exchange market. A portion of the OTC market is the NASDAQ National Market which are part of the NASDAQ National Market System, even though the NASDAQ itself doesn’t trade penny stocks.

You should also know there are there are two other parts of the OTC market, the non-NNM NASDAQ securities and the NQB (National Quotation Bureau) service, commonly known as “pink sheets.”

The appeal of penny stock investing is that you can easily begin investing in them with a modest sum of money. However there’s a lot less information available concerning them, making it more difficult to do detailed research. In contrast to large companies whose stocks trade higher you won’t be able to gain access to reports filed with the SEC for penny stock.

While you do not have the benefit of having this particular information up front penny stock investing can still be a great way to position yourself to take advantage of an up and coming company who has a high likelihood of success in the future. If you put forth the effort and do research of your target company you will be rewarded in the long run.

After you locate a penny stock you believe offers a potential for a good return you can start researching it by finding out if they have make their financial records available to the public. Never take the word of others who say you should invest in a certain penny stock without first doing your own investigation. Before you take someone’s so called hot tip and run with it, go to Las Vegas because the odds will be much better.

Some red flags to look for in these types of stocks are when the auditors have not filed a certified financial statement for the company or when the auditor declares that the company may not have enough capital to keep it operating.

The cost of one’s initial investment when trading penny stocks can be really low which causes it to be very appealing. However, you have to be conscious that these stocks are very risky because it is extremely difficult sometimes to find a way to check the history of some companies and thus you can occasionally be trading blindly with the hope that things will move your way.

As you have most likely gathered from the above information, penny stock trading can be quite involved. This is reason enough to make sure you do not go into it blindly without first doing your homework.

About the Author

David Newman is an investor. The penny stock market can be lucrative if you are willing to put forth an effort to succeed. Learn more about penny stock by visiting Penny Stock Investing

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