Beyond the Brink

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Learn the techniques needed to become a successful penny stock trader.
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Penny stocks represent an excellent investment vehicle for producing gains, while the risks are equally as high. When you finally decide to get involved in penny stocks, to go ‘Beyond the Brink,’ there are some things you need to know.

In fact, whether you have been burned by penny stocks in the past, or have never even invested, the following theories are designed to give you an instant and significant advantage over all those inexperienced and uninformed traders. After all, to make money in stocks someone usually has to be losing money. Which side of the fence do you want to fall on?

Glass Jaw

Lots of people have made lots of money from trading penny stocks. Lots of people have lost plenty, as well. What is the difference between a successful micro-cap trader, and one who continually takes it on the chin?

Uses professional stock picks and research. Does their own due diligence. Observes patience. Takes lessons from past trades and stock activity. Takes lessons from other traders. Decides between 10 stocks at a time.

Uses tips at work, rumors, and so-called ‘inside scoops’ to pick stocks. Doesn’t investigate financials and corporate position. Falls victim to negative emotions like greed, anger, and desperation. Makes the same mistakes more than once. Looks at one stock alone on its own situation.

So Let’s Learn

The fact that you have taken the time to review this feature demonstrates that you have the characteristics of a successful trader, specifically the willingness to learn from experts and the experiences of other traders.
So let’s learn. As mentioned above, you should always examine groups of stocks together when looking for a new issue to invest in. For example, make a chart and write down the revenues of each. In the next column list the earnings. Follow this by each of the subsequent criteria you think are important. With all of the data on one table and available at a glance, you can easily get a clear picture of which are the one or two strongest companies from your pool of potential investments.

However, understand that stock prices do not necessarily act in concert with the underlying fundamentals of a company. For example, there is nothing saying that the stock of the worst company on your list won’t out perform the top ranked one.

For that reason you should also include factors such as trading volatility, your opinion of a potential break-through due to some new product, potential positive press releases, etc… This method is not intended to reveal the best stock, but instead to give you additional clarity about which are the best few and worst few according to your own weighting of the various factors you have chosen.

Available Advantages

Get a discount broker. Monitor your portfolio online, do your research online (and offline), and place your trades online. Embrace the technology, because it provides superior advantages all across the board. You can screen stocks, put those into comparative charts, instantly access the corporate press releases, check the latest industry news, and then place your trade… all for about $20.
Then you can monitor your trade order fulfillment, verify that the money and shares traded hands, track the progress of the stocks, get instant alerts for press releases… It is truly endless and complete, and each step that you take full advantage of leaves other traders one step behind you.

Keep small amounts of money in each stock, and only ‘risk’ money for penny stocks. While these low-priced, volatile investments can produce some truly incredible gains, they usually bounce among all sorts of price ranges.
On a related note, if you get ‘freaked out’ or worried about a stock you hold, you should consider selling your position. Try to invest in solid penny stock companies that have a low share price because they are small or undiscovered, not because they are having business troubles.

Be sure to read our related articles Falling in Hate, Fools Rush In, and Trading Myths, and our tools section on Choosing a Broker.

Beyond… And After That

Some of the most successful traders have a few things in common. Firstly, they have made some major trading mistakes in their day. However, they learned more from these mistakes than they ever did from any of their great trades. Don’t squander your failures by trying to put them behind you.

Secondly, keep a journal with dates, specific trade amounts and prices, and even the stocks you were thinking of investing in but didn’t. You can use this for a hundred different purposes as you become a more advanced trader, such as seeing opportunities you missed, or learning that your strategies are valid, or just to monitor your improvement as you become more experienced from month to month.

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Penny Stocks: How Do You Trade in Penny Stocks?

Many beginning investors hear that penny stocks are a good way to get started playing the stock market. But penny stocks are hard to find and trade infrequently. So, how do you trade in penny stocks when you’re interested in making an investment?

Penny stocks don’t trade on well-known stock exchanges such as NYSE, NASDAQ, and AMEX. Rather, penny stocks are traded “over-the-counter,” and infrequently so. Some investors shy away from trading in penny stocks because of this infrequent trading, which makes it hard to sell penny stocks. Some investors fear being unable to unload stock that’s losing money, compromising capital, and losing their entire investment. This can happen with stock that trades infrequently, and this can happen with penny stocks. Penny stocks are considered a high-risk investment for just this reason.

But if you can’t find them on the open market, then how do you trade in penny stocks? It’s true that penny stocks sell for low prices, allowing investors to buy shares at minimum prices. When all goes well, the stocks make good profit for a small initial investment. This is the promise of penny stocks, and why some investors find them very compelling. Those who want to trade in penny stocks may have to look a little harder to find the stocks they want to invest in, but for many this is worth it. Finding information on trading penny stocks isn’t all that difficult.

If you work with a broker, your broker will have lots of information on different penny stocks. If you choose to work with a broker when investing in penny stocks, you’ll get monthly updates on the progress of your stock, and always know what the status of your investment is.

In order to trade in penny stocks, and to find out what penny stocks are available for you to invest in, check the OTCBB or Pink Sheets listings. This will help you find information not only on current penny stocks, but other over-the-counter investments that you might want to make. It’s a good idea to check your stock with both the OTCBB and Pink Sheets.

When trading is on, you may want to be prepared to act quickly. Trading in penny stocks can be tricky, so be sure you do your research. It may be a good idea to regularly check stock sheets and watch certain penny stocks before making any investments of your own. This will give you some idea of how certain stocks behave, and let you know what sort of activity you could see with your own investment. It’s always a good idea to thoroughly look into stock, and into any type of stock, before investing your money.

When you know how to trade in penny stocks, there’s nothing to stop you from making your own investment in the stock of your choice. If you’re interested in doing this type of trading, there’s no reason you shouldn’t give it a try. After all, in the end it’s your money, and you can do anything with it that you please.

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Advantage in trading penny stocks

Introduction: There are advantages or disadvantages with any of the stocks and similarly penny stocks have some advantages and disadvantages. Although the main disadvantage with penny stock is the risk factor associated with it, penny stocks have a number of advantages. Some of the advantages have been mentioned below.

Advantage in trading penny stocks: A small and careful investment in penny stocks can bring a high amount of profit. A thorough research about the company offering penny stocks and the companies financial factors can give an idea about the company and prospects of its penny stocks for future. However, for getting the maximum advantage and profit from the penny stocks, you should evaluate and think twice before putting your hard earned money into the market. This is one of the market where you may not get the authentic and reliable information and you will have to search the right stocks that can give you profit in the long run. There are a number of people involved in trading in the over the counter market and some lose and other gain.

You can learn patience and make money from the penny stock market, however you should remember that you should not make any hurry. You should be patient, although you may get lot of misleading statements from brokers or dealers, but avoiding hurry and taking an advice from another operator will benefit you.

Another advantage is that you have lot of opportunities that too in pennies in this market. You should look for the several stocks instead of looking for a single stock. You should also make comparison between stocks and on the basis of various factors including financial factors should decide about the specific stocks. Financial factors such as profit, revenue, and profit equity ratio are important for deciding in favor of a particular penny stock.

Now a days online booking and sales of stocks can be advantageous and you can come to a decision in time and at the same time you can look for the other vital parameters including financial parameter of the company. You can monitor your portfolios online and you can see the stock rates online at the website of pink sheets.

With these simple steps, you can gain a good amount from this market, however you should remember that the penny stocks market is not a quick rich type of market. Your intelligence and look for all the options before investing in a particular penny stocks can be beneficial for not only in terms of money but you can also gain expertise in the area.

Summary: There are numerous advantages in penny stock trading. A lot of opportunities are available in penny stocks if right steps are taken. By through examining the available stocks in the same group, you can arrive at a conclusion in favor of specific stocks on the basis of its performance and financial indicators.

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Penny Stocks: Learning More About Penny Stocks

There’s so much information out there on different stocks, and advice on how to play the stock market. But which advice do you trust, and how do you know that you’re getting good advice? When it comes to learning more about penny stocks, do you know where to start?

Finding out what penny stocks are, and how to trade in them, is the first step in trading penny stocks. After all, if you’re going to invest you want to know what you’re investing in and the best way to do it, right? This only makes sense. But many investors want to learn all they can about stocks, before they invest their valuable money – and their time, which is sometimes even more valuable than any amount of money.

So how do you go about learning more about penny stocks? A good place to start is the Internet, and not those spam e-mails that talk about penny stocks – never trust those. But there is valuable information to be found online, and knowledgeable people who will answer any questions you may have. The Internet can always be a valuable source of information on any topic – as long as you remember not to trust everything you read you find online. It’s always good to double and triple check any facts you unearth online, just to be on the safe side.

But for chatting with others and learning public opinion, there is no better forum. And isn’t talking to fellow investors the best way to learn about investing? Those who have played the market using penny stocks are the people who will be able to offer you the best information and advice. They can tell you what they did, and perhaps even answer questions.

You’ll find online forums, chat groups, discussion boards, and entire sites dedicated to investing in all kinds of stocks. You may even be able to find some penny stock-dedicated forums and groups, where you can learn about the stock type that most interests you. This is a great way to find out what real people are saying about their stocks, and if they’re actually making any money with them. Some people may brag about huge returns and this sort of information should perhaps be taken with a grain of salt, unless stock numbers seem to match their claims. As you talk with people and learn more, you’ll become more and more familiar with the penny stocks of your choice.

After all, it’s not like you can just take your broker’s word for it. When it comes to your money, you should learn all you can about where you’re investing and what you’re investing into. The Internet is a great source of information, and you can look up penny stocks and penny stock information online as well as chat with other investors. There may be some false information, but there is a lot of really good information – and the only way to find it is to look. Talk to others, and learn more about penny stocks before you invest. It may help you may bigger profits and enjoy bigger returns, as a result.

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