Choosing the right penny stock broker can help make or break your successes and your profits. You want to watch out for certain red flags that are a sign of a questionable broker all while considering some of the basics like required minimum account balance. In this equation there are three specific things you should research before you commit to a broker. Understanding these three things and why they are important will help you increase your profits in this fast-paced niche of stock trading. Continue reading
Using stock quoting systems can help you achieve more success with your stock trading, but to get the most benefit from them you need to choose the right system for your investments. Some may provide too little information, while others may provide too much information that will only distract you and take you off course.
Level II stock quotes are one of those quoting systems that provide a lot of information, but this information can be useful if you are into day trading or trading penny stocks. These quotes allow you to track the buying and selling by market makers, wholesalers and electronic communication networks. By following some of these players you may get signals that will help you get a better feeling of the future stock price of certain markets.
These quotes will also provide you with the ask price, highest bid and the size of the order. This can help you track increased or decreased interest in a particular area. It is important to note that this quote only shows specific things like highest bid or lowest ask, but it doesn’t necessarily show prices for the whole order. Continue reading
While you can get your stock quotes online or in the paper if you want to be successful at trading penny stocks you will need to check stock prices more often then after the market bell at the end of the day. Instead you may want to look into penny stock quoting systems to provide you with more up-to-the-minute quotes and further capabilities.
There are a few different levels of quotes with different degrees of detail and other functionality. Level I stock quotes are similar to the information you get on the news, while Level III stock quotes include quotes on stocks as well as the ability to execute trades and send out a notice that trades were executed.
Since the price of penny stocks can change so quickly and so frequently throughout the day, the more information and capability you have with stock quoting systems the better chances of your success with penny stock trading. This is an already tricky market so all the tools you can find to help can make a big difference. Continue reading