Investing - Online Penny Stock Trading

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.

Penny Stocks Can Be A Drop of Rocket Fuel

by Charles

Penny stocks are known for their high level of risk and volatile behavior. They are very unpredictable and tricky so many investors warn against them. After all do you want to leave your investment portfolio to chance with something known to be risky and volatile? While they may be risky they also have the potential of providing great reward so you may not want to discount them completely.

Take a look at these three investment scenarios to see what could happen if you balance your risk and reward wisely.

Paper Trading Penny Stocks

by Charles

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.

Penny Stock Scalping

by Charles

There is a spread on all stocks which is the difference between what people are selling stocks for and what people are buying stocks for. When stocks are low value and thinly traded this spread can be somewhat large as a percentage of the value of the stock. Scalpers attempt to buy towards what people are asking to buy for and sell towards what people are asking to sell for. Often this requires a little patience or a good understanding of the direction of the stock by the orders that are executed at the moment.