Blog - Online Penny Stock Trading

Dividend Mutual Funds Aren’t All the Same

Not all dividend mutual funds are the same. You don’t want to get caught in the trap of thinking investing for income is good enough. The source of the income can also make a big difference on your risk and your overall returns. A dividend mutual fund doesn’t just hold high dividend stocks. They may hold traditional blue chip stocks that aren’t the best of dividend yielders, cash, bonds, and real estate investments. If you want to make the most of your investment dollars you need to learn the differences between different types of dividend mutual funds and other investing vehicles that provide similar return profiles.

Practice Trading Stocks To Reduce Risk

by Charles

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.

Stock Trading for Dummies

by Charles

Whenever we learn about something new it’s important to start with the basics. This is especially vital when you are learning about something that will impact your financial decisions. Stock trading for dummies provides a quick overview of the world of stock trading, including some of the different investment options and the services you use to facilitate these investments.

The basics discussed here include the nature of the stock market, mutual funds, index funds, brokerages, online brokers and online stock trading. Understanding these basics will help you navigate the world of stock trading and help you find the right type of investments for your personality, your expertise and your budget.

How to Read Stock Charts

by Charles

A stock chart is simply a pictorial view of the price of a stock over time. Virtually all common styles of stock charts can be generated for free online or through your online stock brokers. Just generating charts is not enough. You need to learn how to read stock charts in order to gain any value from them. Learning how to read stock charts can be broken down into understanding the timescales, understanding the price scales, and knowing the different charting styles.

If you are buying penny stocks, you need to determine if you’re looking to capitalize on day trading or if you’re just looking for a diamond in the rough to stick with for the long run.