Penny Stocks To Advoid

Protecting your investment strategy is important. While you should be playing close to the chest on your own strategy, you’ll eventually have to venture out into the world and see what other investors are doing, and that’s where trouble can creep in. Bad investments happen all the time, but they are rarely by accident. Promoters may try to point potential, uneducated investors toward their own penny stocks, which is typically sold over-the-counter. They may even promise that there will be no brokerage fees, but they will be profiting in one way or another.

Stay aware of the general direction of the market, and stay on guard for the “salesman” that exists around every corner of the market. Here are some signs of penny stocks that you should avoid.

The Sinking Basement

Some stocks are attractive because they have hit a low price, and surely they couldn’t fall any lower, right? The answer is that they can, and most likely will if you’ve done your research. Stocks that have dropped by a significant amount will fall into the penny stock territory. It is important to understand that these stocks are dropping for a good reason, and most likely will not rebound for that reason. If a tech company is going under because of a lost patent lawsuit, how are they going to recover? Consider the reasons and you’ll understand why these stocks should be avoided.

Foreign Investments

We’re all familiar with the “Nigerian e-mail scam” involving an account with hidden funds that will be released to your account. There’s a reason these scams are so prevalent; other countries have looser restrictions on banking and transactions, and this extends to the market as well. If you’re not aware of the banking and investing regulations in foreign markets, do not invest in them. You will not be as well protected.

The Barker

Finally, you will find that there are people who will promote their penny stocks as being the latest “hot tip.” These are especially popular with no-name or little known companies that seem to have popped up over night. Avoid hot tips in the penny stock trade. You can learn about penny stocks to watch from a licensed broker, but a tip from a website, or someone you just met is not a tip to throw away thousands of dollars on. Spend your money carefully, not impulsively.

What Is The Top Penny Stocks Broker?

What Is The Top Penny Stocks Broker?

New market participants always ask who are the top penny stocks broker? This is a great question because trading penny stocks can become a nightmare for a person that has the wrong broker. Most brokers either will not allow their customers to trade penny stocks (stocks priced under $5.00) or they will allow it, but provide terrible executions and have high commissions. For this reason I suggest avoiding most brokers including brokers such as Scottrade, Zecco, Questrade, Fidelity Investments, Sogotrade, Thinkorswim, Investrade, Firstrade, Sharebuilder, Just2trade and TD Ameritrade. All of these brokers are called “retail brokers or online discount brokers,” and they do not offer direct access routing. For this reason some of these brokers may take up to several minutes to exectute your trades at times and in volatile penny stocks, this can result in your losing thousands of dollars. You need a broker that will allow you to to get in and out of best penny stock quickly, and provide low commissions so that your profits are not eliminated by transaction costs.

My Suggestion For The Top Penny Stocks Broker

In my opinion the top penny stocks broker is Speedtrader.com. I personally use this online broker and they are hands down the worlds top broker for serious penny stock traders. They will allow you to open a cash account with an initial deposit of as little as $1,000. If you are placing 3 day trades a week you may need to deposit a minimum amount for $2,000 since you will need a margin account for this. Like any other broker if you want to be an active day trader and places more than 3 day trades in a 5 day period, then you must maintain a balance of at least $25,000. This rule is called the pattern day trader rule and it effects people in the U.S. only. In places like Canada you can place as many day trades as you would like however I am not sure whether Speedtrader.com will allow Canadians to open and account. This rule is definitely a hinderance but you certainly can overcome it pretty quickly once you acquire a trading strategy that works and can execute your strategy through the top penny stocks broker. Speedtrader.com also will match your current brokers commission or they offer commissions as low as $2.95 for very active trader.

Why Choose Speedtrader.com

Besides the advantages I have already listed there are other reasons I personally feel Speedtrader.com is the best penny stock broker. The Das Pro trading software that they provides is one of the best direct access trading platforms currently on the market. It includes streaming real-time Level I and Level II quotes, intra-day charting, point and click trading, fast confirmations, and low commissions. They also offer access to mobile trading on a smart phone such as the iPhone or a tablet such as the iPad which means 9-5ers can trade from work. The software also has lots of additional features such as the ability to utilize OCO orders – (one cancels other) and software based stop loss orders which do not allow market makers to see your stop losses. It also allows point and click trading straight from the level 2 interface or keyboard short cuts. All of these features are imperative to becoming a trader that profits consistently. A big reason 95% of people lose at trading is because they do not have access to these features that the best penny stocks broker provides. Althought the software is has a monthly fee, if you place enough trades so that the total amount of your trades adds up to more than the cost of the software, they will give you the software for free! I HIGHLY suggest you consider Speedtrader.com if you expect to make money trading the hot penny stocks in market.
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Listing of The Best Penny Stock Forum and Beware

We’ve been to all of the penny stocks forums and have compiled a list of many of the best penny stock forums online. Although these forums can be useful for finding the current stocks that are in play, please keep in mind most messages you will find people posting on penny stocks forums are either uninformed penny stock investors, stock promoters which are paid to increase the price of specific penny stocks, or individuals that are trying to pump stocks that they own. Everyone that makes a post on the multitude of penny stocks forms has an agenda which in general is to rip somebody else off. You need to be very aware of this and should not base your trading decisions on anything you read. A penny stock forum should merely be a starting point for finding stocks that may be getting a lot of attention and therefore have “tradable volume”. Penny stocks with little or no volume will go know ehere and for this reason are not going to allow you to earn money. Instead you will tie your money up and months or years and this is foolish. Most people stocks only go down over the long term anyway which means if you invest in them for more then a few days or a couple weeks your chance of losing everything is multiplied ten fold. For these reasons it is best to NEVER take a recommendation that you find on a penny stocks forum seriously but none the less they can be a useful resource.

Our List Of Penny Stocks Forums

Investors Hub Forum – Popular but lots of idiots and pumpers
Stock Hideout Forum – Good penny stocks forum
Raging Bull Forum – Watch out for idiots on this forum.
Online Traders Forum – Pretty good forum to check out for best penny stock
Silicon Investor Forum – Pretty good penny stock forum.
Trade For All Forum – Pretty good forum.

It very simple to locate the best penny stock

It’s Simple To Locate The Best Penny Stock For Maximum Profits…

The best penny stock are not difficult to locate but deciphering which penny stocks you should buy and which you should stay away from, is more complicated. There are approximately 8000 stocks that trade on the OTCBB and pink sheets. These markets are what people are referring to when they referrence true “best penny stock.” There are some stocks that trade on other established exchanges which trade for a price under $5.00 and these are by definition also penny stocks, but they do not have the same potential for traders. Mostly this is because these types of exchanges are regulated more thoroughly and therefore penny stocks are more difficult to manipulate. Whatever you do, I strongly urge you not to become a long term investor in penny stocks. Doing so is silly and you can be assured you will end up a loser in the penny stock market. Owning even the best penny stocks of the bunch is only smart if you have the ability to time your trade to get in and out within 1 or 3 days.

Avoid Believing In Penny Stocks…

Many investors feel like they have to do a lot of research on a company to decide whether to place their money into their stock. The thing about penny stocks are they have no fundamental value, so attempting to put a value on these type of best penny stock is nearly impossible and serves no purpose. I am not exagerrating at all. They really are worthless companies, yet they spend thousands on web design to make attractive websites and millions on public awareness to attempt to artificially prop up the price of their stocks. Don’t buy into what the management of best penny stock companies say on their website, in press releases, interviews, etc. These people are essentially highly paid cheerleaders. They don’t care about helping their investors in any way. All they want to do is convince as many suckers to buy their stocks as they possible can so that they will be able to pay their ridiculous salarie. If you think about it why should you ever put your faith in a company that has been in business for a decade, that has never even earned a single penny, and most likely never will? It just does not make sense when there are so many legitimate blue chip companies that earn billions of dollars that you can invest in.

Earn Huge Profits Right Now by identifying the best penny stock

It is fairly straight forward to learn to beat the significant market players at their game. In all honesty you just need to think a little bit differently from all the losers that get caught up in their game and invest in the best penny stock, rather than trading. Understand that the people that profit in penny stocks do so for a job. They do not do it for fun, and they certainly aren’t going to let you take advantage of them without a fight. To beat these people you will have to sneak into the market at a time when they are not really paying much attention, and quickly pull out some money before they realize what you are doing. These opportunities don’t come every day, however when they occur several times per month, you must jump at the chance. Create a list of penny stock to watch and monitor them closely, start trading it when the time is ripe. One good source to start is to go to msn best penny stocks.

What You Need To Compete…

It doesn’t take a ton of money or anything special to get setup to compete with the big boys but you do need to be serious about earning profits in the best penny stock picks. Trying out the penny stock market is a great way to lose quickly. If you commit to learning to trade top 10 penny stocks you will be very successful. You just need a direct access best penny stock broker, and some trading software to analyze stock charts and level 2 quotes. Once you start thinking differently about where to enter and exit stock trades, and how to limit your risks, the money will start pouring in. As soon as I started focusing on studying the market at least for 30 minutes a day and reading everything I could online, I soon stumbled upon a way to take money from some of the best penny stock. Since that day I never looked back and I have been trading for a living.