The Life Of The Penny Stock Pump And Dump

The penny stock pump and dump scheme is the longest running pink sheet scheme still in practice today, but it is difficult to control because of the way it works. Since the barrier to day trading has been reduced by advances in computers and internet availability more people are becoming addicted to trading stocks and making money in this market. The newcomers to day trading are often more susceptible to manipulation because they are often following technical trading patterns laid out in books, but even more experienced traders can get caught up in these schemes.

Here’s how the penny stock scheme works: Continue reading

Why Day Trading Penny Stocks May Be Your Best Option

Day trading involves sticking with stocks for the shortest period of time possible to make as many small profits as possible. Day trading often carries a stigma of wild gamblers or genius big shots playing or manipulating a system to make millions, but this usually isn’t the reality of this profession.

In reality the day trader is someone who knows how to make a consistent plan that has proved itself and stick with it. Most day traders prefer highly volatile systems like the options and futures markets, but there is plenty of room in the realm of day trading penny stocks. Here are some reasons you should or shouldn’t day trade penny stocks. Continue reading

Level II Stock Quotes

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

How To Build A Penny Stock Trading Plan

Penny stock trading may sound interesting, but without taking the time to develop a solid plan it can be financially risky, to say the least. Take the time to develop a plan. This plan will help you achieve greater success, it will help you make decisions quickly and it will help keep you grounded.

There are a few basic tools you will want to use as you develop your plan. Because research of this market and of different trading strategies is so important, one of the most important early tools you can use include books. Read books on topics like risk management, technical analysis and the psychology of trading. They will give you a lot of insight into your own preferred style and how it will work with this market.

Once you have some background it is time to start testing and practice trading. These two things will help you really start to get a feel for this type of trading. You should know you’re ready when Continue reading

Paper Trading Penny Stocks

If you’ve decided to start trading penny stocks you may be excited to jump right in and get started, but this can be a mistake. It is best to start paper trading so you can learn this market and make mistakes without them costing you a lot of hard-earned money. These stocks are very different from traditional stocks and although there is a lot of hype about the possible success in this market, there is a learning curve and it is better to learn through practice.

Paper trading is a good idea for anyone who wants to start trading stocks. It will provide you with the ability to go through the motions of buying and selling stock to see how you would do if you had invested real money into them. To get the most accurate picture of how you would do, it is important to track everything including fees, limit price and exit price. Take this seriously and use it as a tool to help you learn and prepare for the real thing.

There are a few specific things to consider when you get started. Continue reading

Practice Trading Stocks To Reduce Risk

Most consider penny stock trading to be the exchange of stocks at a price between $1 and $5 per share. You’ll also see them labeled as micro cap stocks, microcap stocks, nano stocks or even just small cap stocks. But that doesn’t mean there is less risk involved in this market; in fact these stocks generally carry more risk. That’s why it’s a good idea to practice trading before you start investing real money.

Penny stock trading occurs within the OTCBB (Over-the-Counter Bulletin Board) or on the Pink Sheets. So you’ll also find these stocks labeled as OTC stocks (OTC stands for over-the-counter). They tend to represent smaller companies, newer companies or struggling companies. They either haven’t proven themselves enough to list on NASDAQ or the grand New York Stock Exchange (NYSE) or in some cases they’ve been penalized by those exchanges and removed.

There is a common misnomer regarding this type of trading. Continue reading

Online Penny Stock Trading

Penny stock trading can be a fun business with great potential, but unfortunately there are a number of scams associated with niche, as well as penny stock fraud. Here we take a serious and professional look at online penny stock trading and aim to provide quality information on this specific market.

Many people get involved in trading penny stocks because they want a way to get rich quick. There is no easy way to get rich quick. There is money to be made in this market, but it doesn’t necessarily come easily. There is a learning curve, and there is plenty of risk.

Comparing penny stock brokers is one good place to start if you are serious about getting into this market. We’ll discuss various online brokers and the differences between the types of brokers. We also explain how to trade penny stocks as well as stock trading software.

This site provides a good look into penny stock trading, providing tips on what to do and advice of what to avoid. Continue reading