Pennystockexperts101's Blog

Penny Stock Fortunes begin with One Investment

pennystockexperts101 — Thu, 30 Apr 2009 16:35:24 +0000

With the stock market at levels not seen in years, the time for investing is now, but if you are like one of the millions of Americans who have never invested before, it can be a bit confusing figuring out where to start. The world of investing is very jargon-heavy and the risk involved with investing can scare off some people. A great place to get your feet wet in investing with penny stocks. Penny stocks are any stock with a value in single digits. They are a popular first investment because the initial investment amount can be very small, but the payoff can be quite large if you do your homework.

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Pretty much every company out there started as a penny stock at one point or another. Even the biggest companies on the block started out as an idea someone had that was turned into a success through years of hard work. Penny stock fortunes can be made, but you can’t simply throw your money at any stock with a value under $10 and hope for the best. There is a huge amount of stock research out there, it is up to you, as an investor, to read up and choose which ones have the brightest future.

Many people believe that penny stocks are always companies that are up and coming and not established. This isn’t always true. For instance, CitGroup (NYSE: CIT) is a company that we’ve all heard of that currently qualifies as a penny stock. Many experts believe that the market has overreacted greatly to their recent troubles and that the positives this company still has outweighs the small risk you would undertake by investing in it. It is amazing to think of such a well known corporation like CitGroup being a smart penny stock investment, but it is!

Pervasive Software (NASDAQ: PVSW) is another company that many industry insiders have heard of that is widely considered to be a smart penny stock investment. With shares around $4, Pervasive has shown strong growth in recent months as sales for their integration software has increased significantly. Companies like Pervasive actually go against the conventional wisdom you would apply when it comes to picking investments during an economic downturn, but once in a while, a companies’ outlook is so bright, you can’t help but see success in their future and Pervasive fits that description to a tee.

One final stock we’ll look at is Lion’s Gate (NYSE: LGF). With share prices hovering around $7, this penny stock has already shown exceptional growth over the last few years. The Vancouver, British Columbia based film and production company benefited greatly from the provincial and national tax credits given to Hollywood filmmakers who choose scenic Vancouver to shoot films in, and with the sudden swing in the exchange rate over the past few months, Canada is again back at the top of every film maker’s list of places to make movies. As long as the US dollar is trading at $1.20 or more, Lion’s Gate’s profits are sure to have a healthy roar.

How to invest your first 100$ in the stock market

pennystockexperts101 — Mon, 27 Apr 2009 18:18:40 +0000

Making money by investing in the stock market requires great discipline, patience, and a cold reasoning power. When you are investing money in the stock market, your personal feelings (other than the desire to make more money) don’t matter. You cannot be skittish, nor can you hold on to something with any personal attachment when you sense that you need to sell.

Click To Here To Get The Best Penny Stock Picks And Advice Straight To Your Inbox Daily.

You should also concentrate your energies on just one stock sector (such as metals or energy) to help give you mental clarity.

Some people don’t have $1000 to open a usual stock brokerage account, and they wonder how they can make money in the stock market beginning with just $100.

There are not very many stock market investment accounts that can be opened for just $100. However, there is at least one very good investment account offered by the highly respected financial institution ING. With ING Direct’s Share Builder account, you can open a stock market investing account with as little as, yes, $100, and begin trading immediately. You can buy stocks for as little as $4 and set up your Share Builder account to automatically buy and sell or a regularly scheduled basis.

If you open up an account like Share Builder, you want to have a plan in place for how you are going to invest the money. If you are a beginner, you should probably invest in a company that’s listed on the Dow Jones Industrial Average, the NASDAQ, or the S&P 500. These companies are considered to be pretty stable, established, and doing well. The three different indices represent three different groups in which stocks are listed according to different criteria.

Another thing to keep abreast of is which industries on the whole are doing well. You can then pick a stock market investment based on stock quotes for a company in that industry. For instance, if oil and gas companies are doing well, why not choose an oil company to invest in?

However, you also need to keep in mind that if you’re beginning with just $100 to invest, you won’t be able to buy that many shares of a lot of established companies–their share prices can be very high (higher than $100 for just one share).

One way around this obstacle is to invest in “penny stocks”. These are stocks of companies whose shares are only selling for a couple of bucks (so it’s actually more than just a penny but the principle’s the same). Penny stocks can have great upward potential and make you a lot of money when they start to rise. If you buy penny stocks for, say, $3 a share, when their share price gets up to about $15 it’s a good time to sell and take profits.

But don’t just pick any penny stock because it’s cheap. Again, pick a penny stock to buy and trade in from an industry, such as oil, that is going great guns (read the financial news). And watch it carefully. If you buy penny stocks at $3 a share and they go down to a buck a share, sell them and cut your losses. You haven’t lost that much money because you did not invest that much–another great penny stock investment advantage.

When you become more experienced as an investor you can buy options contracts often for $100 or less. Each options contract lets you have temporary control of 100 shares of a given stock. This has the potential to make you a ton of money in a very short time with only a very small investment. But you need to know what you’re doing first because you can lose lots of money fast here if you don’t.

Ten Ways to find a Great Stock Trading Newsletter

pennystockexperts101 — Fri, 24 Apr 2009 14:33:48 +0000

These days, the Internet has afforded everyone investing in the stock market to make an informed decision on their investments. Through the Internet, investors can receive the latest updates regarding their investments.

Click To Here To Get The Best Penny Stock Picks And Advice Straight To Your Inbox Daily.

The flow of information is made faster by the Internet. One of the medium for the information flow is the stock trading newsletter.

Through the stock trading newsletter, information is sent via E-mail or is viewed in a Web site that may have been updated several times in a day.

There are many stock trading newsletters today, some of which are offered for free while some require a fee. However, only some of them are very good ones, being able to help you find good stocks and assist you in earning more money.

So how does one find a great stock trading newsletter? Here are ten tips:

(1) Choose the one that focuses on the kind of trading you’re engaged in. Newsletters that barely or does not focus on the kind of activities you’re engaged in is close to useless. If you’re the type of trader that seeks diversified investments, then you won’t gain anything from a newsletter focusing on penny stocks.

(2) Determine the potential impact of advertisements accompanied by the newsletter. Advertisements get in the view and distracts you from getting on the information that you wanted right away. Free newsletters are bombarded with advertisements. Paid newsletters, more or less, contain few or no advertisements because they don’t depend on advertising for income. In addition, editors of the free newsletters may put more emphasis on the stocks of their advertising company even if there are better options available.

(3) A great stock trading newsletter focuses on the stock price movement combining trend analysis, chart pattern set ups, etc., based on data gathered from historical statistics, and presenting them to you for your own analysis as well.

(4) Consider the newsletter’s [or the company producing it] track record but don’t be too absorbed in it because some newsletter companies may fake their record. The newsletter’s analysis and information must make sense and meet common sense.

(5) Don’t avail the newsletter services from the one that is just starting out. You may find their analysis and tips valuable, but how can you ever confirm their reliability without any past performance and reviews?

(6) Consider testimonials or reviews made regarding the newsletter. Seek the advice of other investors or brokers, or ask those you knew which availed of the newsletter services. Lookup through search engines or search through blogs, forums and review sites. However, don’t be too absorbed at the reviews. Most often, the one who gave the review or testimonial may be a little biased or may be promoting a particular newsletter.

(7) Look for newsletters that other reliable financial publications have referenced or quoted. A newsletter’s content must be really good if other leaders in the industry seek it out. Also, choose newsletters published by reliable financial institutions as information from these can usually be trusted.

(8) Do some research into the newsletter’s publication date compared to its contents. A stock trading newsletter is only as good as its publication date. Something that comes out at least once a month may contain advices that are a month old, which by the moment you read it becomes moot or stale.

(9) Test three to five newsletters at a time. In this way, you avoid information overload from reading all the charts, trend analysis and research in the newsletter. Unsubscribe to one before adding another newsletter for review.

(10) Consider buying a software package offering a web trading platform service and may entitle you related newsletter, forecasts and analysis for free. If you are happy with the web trading platform, it just make sense to receive the newsletter from the same company.

Always remember that a great stock trading newsletter is one that can assist investors in making an informed decision.

Finding Reliable Penny Stock Advice Online

pennystockexperts101 — Mon, 20 Apr 2009 09:39:29 +0000

Ask any seasoned investor what the key is to making smart investment choices and, without hesitation, they will tell you research. Sure, it can be fun to play a hunch or a hot stock tip from your cousin’s best friend’s brother, but if you base your entire investment strategy on the tip of the day, you’ll soon find that you have very little in the way of money left to invest. If you have decided to dabble in the world of penny stocks and you have been searching high and low for reliable research on which penny stocks to watch, there are a handful of websites that make it their business to alert you when a real penny stock investment opportunity is available.

Click To Here To Get The Best Penny Stock Picks And Advice Straight To Your Inbox Daily.

First off, The Motley Fool is one of the easiest financial websites to read and one of the most accurate. A recent study showed that their stock tips, research and advice was just as accurate as other, better known sites. Not only does The Motley Fool have major sections dedicated to financial news, blue chip stocks and market reports, but they also have a regular feature focusing on penny stocks, or stocks valued at under $10 a share. What makes this penny stock report better than most is that all of the stock recommendations given are well researched and backed by financial news reports. Of course, that doesn’t mean that a penny stock tip from The Motley Fool has no risk, it simply means that the chances of an increase in stock price are clearly outlined for all to see. If you are searching for penny stocks to watch, The Motley Fool is a great place to start.

PennyPerformers.com is another highly respected and well researched website for information and tips on penny stock investing. The good people at WhisperFromWallStreet.com have earned such a sterling reputation, their research often appears on other, larger financial websites on a regular basis. This website does a great job of explaining the risk and reward that comes with investing in penny stocks. It backs all of its recommendations with research and breaking news, but also makes a point of explaining that no investment is guaranteed, even with positive research and news backing it. If you have been searching for a service the experts themselves use to glean information on the rise and fall of penny stocks, check out PennyPerformers.com for the latest news and information.

If you perform a simple Google search for penny stocks, the first site that comes up is AllPennyStocks.com, and there is a reason why. With an attractive layout, sound advice and a bit of humor, AllPennyStocks.com does a great job of informing the public on which penny stocks to snap up and which ones to avoid. Financial news is updated throughout the day here and there have been more than one major penny stock that has been introduced here that turned out to be a big winner.

While none of the above sites can be considered perfect, as a group, they provide a great place to do your research before you run out and buy the penny stock of your dreams. Thanks to these great sites, you no longer have to search for penny stocks to watch any longer. What Are Penny Stocks? Penny stocks can be an excellent way to double or even triple your stock portfolio over the next 3 years.