Stocks No Comments

4 Things You Need to Know About Penny Stocks

Penny stocks may seem alluring, and you’ve likely heard a lot about them and the profit potential they have. But there are a few things you need to know about penny stocks before you go all-in. Here are four quick facts about penny stocks that most investors wish they knew about earlier.

Get the Low-Down on Penny Stocks First

Becoming  knowledgeable when it comes to penny stocks is your best defense against all the pitfalls out there. Use this Penny Stocks Guide to get a quick debriefing  and you’ll be surprised at what you can learn from just a few minutes of your time.

#1: Penny Stock Scams Exist

One thing to know is that there are plenty of penny stocks scams to watch out for. The old adage that “if something sounds too good to be true it probably is” is applicable here. Be leery of claims made of instant riches without an acknowledgment of a possible loss of capital.

Also, watch out for companies that promise to hold your hand through the entire process or that offer a copy and paste system for success. They often prey on newcomers and try to make everything sound super simple. But you will need to use some of your own brainpower if you want to see lasting success.

#2: You Can Lose Large Sums of Money

When people think of penny stocks they usually assume that because the start cost so little pressure it is hard to lose lots of money. They only focus on the upside, and don’t consider the bad things that could happen with their money. Since it is possible to make large amounts of money in just one day, the possibility also exists of losing large amounts of money in just one day.

#3: You’ll Likely Be In The Dark

The kind of companies you find being traded as penny stocks will generally be ones that you’ve never heard of. You’ll have to be comfortable with not knowing as much about these companies as you would a blue chip stock traded on larger exchanges. You’ll also have to take the information they do provide with a grain of salt, because there will often be no way to fact-check what is being stated.

#4: The Companies Will Probably Be Volatile

One other aspect of penny stock companies is their volatility, with game-changing information coming out regularly. This is exactly what makes penny stocks so intriguing. In just one day a stock can go from zero to hero or vice versa and fortunes can be won and lost in a snap.

Getting comfortable with the zaniness of the penny stock world and learning to embrace it rather than worry about it is part of the fun and can be the difference between success and failure.

Don’t Fear Penny Stocks

Even though there are a few caveats to be aware of before making your first penny stock trade, there’s nothing to fear when you have the right training and know-how. Beefing up your knowledge of the market is one way to allay any fears you have and venture into a new way of trading.

Stocks No Comments

Getting Rich On Penny Stocks In The Tech Sector

When people get started investing in the stock market, they do not usually think about penny stocks. Instead, they might turn to recognizable corporate names. But, these stocks might be priced to high for the rookie investor.

Instead of ignoring penny stocks, new investors should take a good look at the Tim Sykes Millionaire Challenge. The young investor made his fortune by starting off with the most inexpensive stocks that he could afford. Once he made money on penny stocks, he was able to look at the big corporations that deliver big dividends.

Investing In Stocks Can Be Risky

These stocks may not be well known in the world of investing, but they are often the first ones that young tech companies use to build capital. If you do decide to invest in risky penny stocks for tech upstarts, there are a few things to consider:

  • Penny stocks can be traded after hours which makes them challenging to follow
  • Accurate quotes are difficult to find because they are traded so infrequently, even after hours
  • Companies offer little information to the public since they are so young and they often do not have the means to provide reports

Because of these challenges, even the most competent investors can be hesitant to get involved with these stocks.

But, if you want to reap the financial benefits of helping young tech companies build their capital, then buying penny stocks is one way to do it. Since these stocks are only a penny, the risk may not seem overwhelming, especially if you start small.

Learn About Investing In Tech Startups

Fortunately, there are other people who try to win big with penny stocks in the tech industry. There are also popular investment websites that follow these young tech companies as they try to turn their names into household brands. These websites often teach young investors all of the terminology and skills that they need for success in the stock market.

Several well-known brands have actually spent time in the penny stock category and some have actually succeeded. Several tech companies have started in the bargain basement and worked their way up. So have many other well-known brands.

Even Ford Motor Company was a penny stock at one point in time.

If you do decide to follow penny stocks and work on investing, there are several resources available for help. Many websites that specialize in following stocks have special pages dedicated to young tech companies. In many cases, these young companies are providing resources to the brand names that we know and love.

How New Tech Companies Get Started

These young tech companies might be involved in exciting adventure. For example, some of the startup tech companies might…

  • provide tech-related services to large companies like Apple or Uber
  • improve products like drones or email apps
  • build products that help the traditional medical industry or the growing alternative medicine industry

If you don’t mind a little risk, investing in young tech companies and their penny stocks can be a helpful tool to grow your own wealth and work your way toward earning your first $1 million.

Stocks No Comments

5 Penny Stocks to Watch in 2016

2016 has already been a tumultuous year in the stock market, with day after day of significant declines, followed by some upticks in the market. It’s a rocky start to a new year, which has caused investors of all types to wonder if their strategy is going to work as we continue this year.

From dropping oil prices to declining global markets, it’s difficult for investors to get a handle on how to make the best decisions, which has led them to seek alternatives to traditional stock market opportunities. One of these alternatives is penny stocks, which are frequently a less perilous way to invest even a small amount of money, and often a good way to weather rough patches in the overall market. While no investment is guaranteed, some penny stocks are grabbing the attention of investors, analysts and media outlets alike.

So as 2016 is now fully underway, what are 5 penny stocks to watch? Consider these:

Curis Inc.

Multiple media outlets have cited Curis Inc. as one to watch. This biotechnology firm is currently working on developing drugs that treat cancer along with a range of neurological and dermatological diseases. They work alongside other biotech and pharmaceutical organizations, and have at least a few drug candidates in the research and development phase. While Curis isn’t yet profitable, many analysts expect the company is moving toward a strengthening future.

Medical Marijuana, Inc.

The use of medical marijuana is expanding around the country, and picking up steam as a viable treatment for a variety of illnesses and pain management. As more states in the U.S. move toward making medical marijuana mainstream, companies like Medical Marijuana, Inc. are benefitting. There are also other similar companies which may be promising picks for 2016, although of course only time will tell.

Avon Products, Inc.

You’ve likely heard of Avon products, which are cosmetics sold through direct marketing. Avon also happens to be an inexpensive investment opportunity for people interested in penny stocks. Analysts believe Avon has plenty of room to grow, and it’s a stable company with a well-known reputation and a consistent history in the cosmetics and beauty industry.

Genetic Technologies, Inc.

Another viable option in the biotechnology sector is Genetic Technologies LTD. This company focuses on diagnostic medicine, particularly as it pertain’s to women’s health issues. One example of the innovation coming from Genetic Technologies is a breast cancer assessment tool called the BREVAGenplus. As Genetic Technologies gains ground as a leader in their industry, it could be a good option to explore in terms of inexpensive investment opportunities for 2016.

Lucas Energy

Based in Houston, Lucas Energy is an oil and gas company with shares that have ranged widely in their price. While oil and energy are taking a beating in the stock market currently, this could make it a great time to learn more about Lucas Energy, in the event this sector does experience a likely resurgence.

Finding Opportunities in 2016

Regardless of the penny stocks you choose to add to your portfolio in 2016, it’s a year full of new possibilities and excitement for investors who are willing to explore their options and learn more about the world of inexpensive stocks.

Stocks No Comments

A Reverse Approach To Choose The Right Penny Stocks – Part I

Okay, here we go! I was recently listening to a video of Tim Ferriss talking about how to learn things better and faster by looking at the learning process in a different way. In his discussion, he noted that chess champ Bobby Fischer learned how to truly master the game by starting from then end–playing a King and a pawn against another King. In the same way, Tim himself learned how to excel at tango by not learning the male’s moves, but by learning the female’s moves instead.

So, I’m going to take a completely new way of looking at penny stocks: I’m going to learn how to LOSE money first!

I think that if you can learn how to lose money first–and learn all those mistakes that people make when getting into penny stocks–that that information will be the MOST firmly imprinted in your mind. Think about it: if you’re like 99% of the population, you’re at least intrigued by “get rich quick” schemes, of which I’ve heard penny stocks are a great example. But, at the same token, there must be money to be made at penny stocks or else nobody would trade them, right?

That’s my working hypothesis, which dovetails with my other hypothesis, that people that lose money at penny stocks are beginners who focus too much on the “get rich quick” part and are drawn in by the lure of big bucks fast.

So, back to the beginning: if we learn how to lose money and what NOT to do, and that’s more heavily imprinted in our brains by learning those facts first, the chance of losing money is going to be much, much lower.

Next, having to learn what NOT to do, we need to learn WHAT TO DO. In order to accomplish that, I’m going to subscribe to Tim’s idea of breaking the task–choosing what penny stocks to buy–into “minimum learnable units” (MLU’s), that is, the chunks of the task that are easily definable and can be separated into different units. I hope to be able to pick out maybe 5 o 6 MLU’s in the analysis, but no more than 10. Then, I’m going to use Pareto’s Principle (20% of the effort gives 80% of the results, so focus on that key 20%), to figure out which of that handful of MLU’s is key to giving the 80% of the results and learn that first.

My thinking? If we can learn what NOT to do when picking what penny stocks to buy and then learn what few elements are the absolute key to getting an 80% result and learn that element or elements very, very well, we’ll be able to make some money!

Think I’m on to something? Or just think I’m crazy? Respond below and let me know what you think.

Stocks No Comments

Where To Look For The Best Penny Stock Picker Reviews?

Several investors are turning to broadcast, print and online media for information about investment strategies and best penny stock picker reviews. These resources are providing investors with excellent analysis and expert advice to make them stay on top of the trends and ahead of everyone else on the curve. The task of determining which kind of stocks is the most progressive and most picked is more challenging. A stock investor will have to gather as much information as he could from numerous reliable resources and sites before he could finally paint a clearer picture of what is going on.

Without the counsel and advice of a good stockbroker, the very first avenue where several investors search for good stock picks is the powerful Internet. There are numerous websites whose primary purpose is to provide stock investors updated information regarding a company’s opportunities, challenges, business plans and finances. These sites offer users a day-to-day update of stock trends with highlights on “hot” stocks. These websites’ best feature, by the way, is an exclusive access to discussion forums and chat rooms. Read more

Stocks No Comments

US Stocks Rise As US Growth Meets Expectations

New York, Dec 22, 2015 (AFP) – Wall Street stocks opened higher Tuesday after US data showed third-quarter economic growth in line with expectations at two percent.

Five minutes into trade, the Dow Jones Industrial Average was at 17,302.79, up 51.17 points (0.30 percent).

The broad-based S&P 500 rose 6.12 (0.30 percent) to 2,027.27, while the tech-rich Nasdaq Composite Index gained 11.07 (0.22 percent) to 4,980.00.

The estimate for US growth in the July to September period was shaved from 2.1 percent to 2.0 percent, in part because of lower business investment in inventories.

The report showed personal consumption expenditure, which drives about two-thirds of the activity in the US economy, rose by an estimated 3.0 percent. Barclays rated the consumption spending as “solid.”

Stocks No Comments

Hot Penny Stocks By Microcap Millionaires – A Review

Microcap Millionaires was designed and developed by Matt Morris. Its purpose is to make private investors in the stock market for more money. One of the strategies that you use the pump Microcap Millionaires Penny Finder strategy. As complex as the stock market today, this sector needs planning strategies for planned operations. The design of the pump Finder Penny is done for this type of strategy and planning. In fact, this type of system looks great on rookie investors.

Microcap trading can help you earn big money, but this only applies if you are able, good penny stocks can be found. Find a good penny stock, you can eat your time for many retailers Microcap Millionaires newsletter if subscribe to information both within WHO MicroCap stocks in the world. Read more

Stocks No Comments

A Reverse Approach To Choose The Right Penny Stocks – Part II

Today, I’ve done a lot of review on my previous topic, how to lose money with penny stocks. To recap, my hypothesis is that if I learn what NOT to do first, that is, learn how people lose money with penny stocks, I will have that firmly imprinted in my mind as I go forward with actually learning what penny stocks to buy.

First and foremost, there really isn’t a lot of information out there in terms of how people lose money at penny stocks. Granted, there are a lot of cautionary tales of woe, with folks losing a fair amount of money, but when it comes down to the details of how and why, the information is lacking.

The few sites I was able to find, along with a somewhat useful YouTube video, are linked as you read through this post. Here’s what I learned from my research:

Penny stock scams are abundant. You need to be very cautious when choosing what penny stocks to buy!

A very reliable site, investopedia, provided a rather basic article with some insights on penny stocks, including a bit of useful information on scams that pervade penny stocks. The first of these is the biased recommendation. It seems that struggling companies will pay people to recommend a certain stock (i.e. their stock!) which is clearly a biased recommendation and a conflict of interest. A second scam is the struggling company will sell their stock to an offshore broker (which exempts the company from having to register their stock with the SEC), and then the offshore broker calls potential investors and uses high-pressure tactics, akin to a used car salesman’s techniques, to pressure folks into buying the stock.

Ugh! No wonder penny stocks have a bad name.

Trendshare.org also has an article with a bit of information regarding people losing money with penny stocks. They highlight the “pump and dump” scam, which I’ve at least seen before. As the article defines it, essentially in a pump and dump scam, a worthless stock is “pumped up” through recommendations, and utilizing the group psychology technique of “not losing out”. This “not losing out” idea holds that people tend to follow the herd and people don’t want to lose out on a potential opportunity. Then once the stock price rises, the person at the source (the “pumper”?) sells all of his shares at a profit, leaving these other folks holding a really worthless stock. The article also notes the ubiquitous penny stock newsletters, which promise the “hot stock tip” or the “insider tip”, which usually is a crappy recommendation.

The most useful article, however, comes from Michaelsincere.com, which is an interview with a penny stock trader (and author) Timothy Sykes. Tons of useful information in this article on why people lose money with penny stocks. Here’s the ways people lose money:

Relying on penny stock newsletters, as I noted above. Sykes notes that the fine print of these newsletters usually reveals an SEC-mandated disclaimer that specifies the conflict of interest! Amazingly dishonest!Being greedy. This is apparent in any investment, in that if you see a 10% or 20% return, you immediately want a 30% or 40% or greater return, and will hold onto a stock longer than you should, instead of exiting, taking profits, and looking for the next penny stock to buy. You have to not be enamored with a stock and look at it 100% objectively and go with your hard analysis, not your emotions. Especially difficult can be the idea that “I failed because I lost money on this stock”. That thought needs to be stricken from your consciousness as each loss is not failure, but an opportunity to learn. I’ve been guilty of this before, so this is something I’m going to have to watch out for myself.Listening to information from the companies themselves. Since penny stocks don’t have to adhere to the same regulations as larger-cap companies who are listed on the major stock exchanges, there’s ample opportunity for companies to outright lie and manipulate their data. Easy enough to avoid.Trading stocks that have limited volume. Let’s say you own 2,000 shares of a stock that has a share price of 10 cents, for a total investment of $200, and the average volume of shares traded is 10,000 shares per day. If that stock drops in price by a cent or two, that’s a huge move, and now you want to sell your shares quickly. But, now you own 20% of the average trading volume. How are you going to be able to find enough people to buy your 2,000 shares of a stock that’s dropped in price by 10% or 20%? You’re not. So, simply avoid trading more than 10% of a stock’s daily volume and trade stocks that have at least 100,000 shares per day traded. Easy enough

The last resource I’m listing here is a video from pennychase.com which lists many of the same things I mentioned above, but is somewhat interesting to listen to. Remember, however, that this is a video made to sell Penny Chase’s service, so there’s a sales pitch starting at the 3:30 mark of the video. I certainly don’t endorse their service nor do I plan to use them for their service, but the information in the first 3:30 of the video I think is useful enough to listen to.

So, that’s it for now. I’m going to distil this all down into a quick reference “How To Lose Money” Post in the Resources page. I plan to have this printed out and available whenever I’m going to actually choose what penny stocks to buy so that I have that idea of what NOT TO DO right at the forefront.

Stocks No Comments

What Are The Good Energy Penny Stocks to Watch Out For?

Penny energy stocks have become a popular choice by investors because today, renewable energy is one of the most successful energy stock types. The ongoing concern on fossil fuels has caused several investors to select penny stocks for renewable energy. Because a big part of the world’s population is turning into this kind of energy, this stock’s potential is big. PLUG is amongst the most favorite in term of penny stocks in this industry. Today, their share price is at a reasonable rate of $.50 each. NGLPF in Nevada, on the other hand, is another option which must be considered.

Amongst the top 10 energy penny stocks to watch is CPST or Capstone Turbine. This company belongs to the sector for wind energy. Numerous good things have been predicted for this pick. When geothermal energy is closer to your personal preference with regards to sufficing energy needs in the future, then, HTM might be a way better stock pick for you. VLNC or Valance Technology is yet another option. This is under close watch in the energy industry. A fortune in penny stock is what all investors dream about and the list above can fulfill your dreams.

In the previous years, penny stocks within the energy sector have nicely paid off. If every investor will just be very careful in doing the necessary research before the actual investment the success rate in the past could be revived today. A usual mistake in this process is purchasing stocks because of affordability rather than making a decision based on technical analysis and research. You have to weed out bad picks so the good ones are the only ones displayed on the portfolio. When this is correctly done, penny stocks could provide investors with a good opportunity of making a significant amount of money and success.

Stocks No Comments

Buying The Right Penny Stocks. Researching Before You Buy

A good penny stock is one that has either the potential to increase in price or offers a consistent dividend income. This is the same for penny stocks or regular stocks. There are several ways the average person can gauge this information about a stock. First and foremost, check its history. What has the price done in the last year? The last five-ten years? Many stocks show a large price hike in their initial years, and then a large drop. The important thing to ascertain is: has the price remained stable? If it offers a dividend, then its stability over several years is a good sign.

In order to determine if a stock is a dividend producing stock, check its statistics. Every stock buying website has their statistics set up in their own way, but they will all have a dividend yield percentage. If the dividend percentage is 0.0% then this stock does not yield dividends. Also, the search engine on each website should have the option to sort by dividend stocks. It is important to pay attention to the math when seeking this type of stock: A seventy percent dividend yield may seem great. However, fifty percent of a $5.00 stock is $2.50 and seventy percent of $3.00 stock is $2.10 so clearly the stock price hugely impacts dividend yield.

Other ways you can determine how a stock might do is to research the company itself. Read any articles you can find about the company in the news. Read the bio of the company on online. A tip here is that if you find during your research a company is about to release a new product into the market or hopes to within the next year, then it has the possibility of a stock price increase.

Financial statements and price to earnings ratios are also available online and should be taken a look at. Granted, information with penny stocks can be really difficult to come by, but if its available, read it! Compare the stocks to other stocks of the same type, looking in particular for red flags like a bunch of debt. Also, the price to earnings (P-E) ratio may indicate an important difference as well. A stock with a P-E ratio higher than other stocks in the same market most likely will drop before long.

Another technique which may be helpful is to track a stock of interest prior to purchasing. Setting up alerts on any articles related to the company will keep you informed on the stability or the potential of their stock. Does the price stay stable over a period of time, or is it jumping significantly from day to day, week to week? If a stable stock which gradually increases in value over time is the goal, then stick with those that don’t jump in price. That’s not always the case in the penny stock world, from what I’ve heard, but I’m going to keep that in the back of my mind.

Use the tools available online to gain as much information as possible. Taking extra time to research before buying can make a great difference in the success of penny stock purchasing. Although information can be scarce, trying to find good penny stocks seems to involve choosing those with as much stability and least debt as possible and paying close attention to dividend yield, stock price, and the history of the company I’m investing in.