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Great Resources To Learn More About Penny Stocks

When it comes to penny stocks, there is just so much to keep informed on. Even if you’ve been in the business for longer than you can count, there are always new things to learn. Check out this quick guide to 7 great resources where you can learn everything you need to know.

Penny Stocking 101

Timothy Sykes has been trading in penny stocks for more than 15 years. Over on his website, he has a great guide for beginners. It’s free and is a great refresher even if you already know the basics. Alternatively, because it’s so accessible and simply written, it would be great to send to any friends or family members who want to know more. The guide has sections including “Your Penny Stock Trading Mindset” and “Penny Stock Terminology”. You can find Timothy’s guide here.

This Huffington Post Article

Once you’ve checked out Timothy’s advice on his website, head over to The Huffington Post. Here he has written the article “The 10 Best Stock Market Books You Should Be Reading”. The list includes a book on the unusual success story of Nicholas Darvas. It also features “Confessions of an Economic Hit Man” by John Perkins, which apparently took 20 years to write. This list was only just compiled in November 2015, so will be current.

Market Watch

Market Watch is a very reliable name and brand. They produce some of the handiest articles, news pieces and guides out there. They range from beginner level, and articles like “10 Ways To Trade Penny Stocks” to business and investment news.

How To Trade In Penny Stocks For Dummies

If you like your information the old-fashioned way, in the form of a hard-back book, you’ll like this. The Dummies brand is well-known for its sense of humour and comprehensive coverage of topics. This book promises “guidance on identifying growth trends and market sectors positioned for rapid growth” and more. A word of warning, though; the most up-to-date version of this was printed in 2013. So, while this book is fine for a general overview, you may want to look online for more current trends and information.

Money Morning

Over on Money Morning, you’ll find an entire section dedicated to Penny Stocks. Here, you’ll find a comprehensive list of some of the best articles being written. These articles are also up-to-date, something that is crucial. “How to Pick the Best Penny Stocks in 2016” is one such example of this.

Financial Times

One of the biggest names in the financial world, the FT is a one-stop shop. Not only will you find Penny stock information, but you’ll also find a whole world other related resources. There are sections for topics like Personal Finance, Emerging Markets and Global Economy. These will help widen your knowledge of the marketplace even further.

And, finally…

Right here at Club Penny Stock, of course!

Club Penny Stock has been in the game for ten years. You can get a free subscription to our

Penny Stock Alert Newsletter; there is more info on this page.

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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.

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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.

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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.

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Trade in Forex – Earn Big Money Quickly

The dealing and trading of cash between two nations that have different currencies are known as FOREX market or some people simply call this as FX market. This type of market is frequently misconstrued as the stock market. However, FX market basically deals and trades money. The difference between stock market and FOREX market is the extensive trading that takes place on the foreign exchange industry.

The amount of money that passes through the FX market can be phenomenal. In fact, it easily reaches to trillion each day. The amount of cash is far larger than the stock market.

The currencies that are sold, purchased and traded across the FX market can be efficiently liquidated. This is the biggest advantage to investors who are attempting to deal between two currencies in different nations. The reality is, it can be done at a very fast pace.

The Difference Between Stock And FOREX Market

The main difference between stock market and the FOREX market is the fact that the FX market is known globally. The stock market on the other hand generally deals from within a country and sells business and products native to that location.

Unending Trading System

International money transfers consistently take place all over the world. Therefore, the market has to be open for business all year round. The countries dealing in FX trading, selling and buying are obviously going to be situated in their respective time zones. In that case, when one FOREX market is closing, another is opening for business. This creates an infinite progress of global trading.

As what you can see, trading on foreign stock exchanges is not that simple. You must learn the basics of trading first. If you are only interested in penny stocks then you can use program like Microcap Millionaires, to learn all the basics.

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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.

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How Can Lower Income Employees Invest in the Stock Market?

No matter how much or how little money you make, it is never too early to start saving for your future. The sooner you get started with your investment plan, the larger your nest egg can grow. While putting money aside is particularly hard for those earning substandard wages, minimum wage workers have a number of investment vehicles at their disposal.

Invest in Your 401k Plan: If you work for an employer who offers a 401k program, participating in that plan can give you exposure to the stock market. Even if you invest only 1 or 2 percent of your income, that is better than nothing. Investing even a small amount can instill the discipline it will take to build a nest egg going forward and allow you to put more money aside as you begin to earn more. If your employer matches part of your 401k contributions, strive to raise your contribution percentage until you are earning the full company match. Read more

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5High Dividend Stocks – Growth Equity Performance Increase

Corporate dividend growth that benefits rose last week was no exception:

Enterprise Products Partners LP (EPD) provides a wide range of services to producers and consumers of natural gas, liquefied natural gas (LNG), crude oil, refined products and petrochemicals in the continental United States, Canada and the Gulf of Mexico. This partnership Master Limited announced an increase of 1.30% in the quarterly dividend to 59 cents per share. This was an increase of 5.40% in the first quarter 2010 distribution. This increased dividend Achiever annual performance since its IPO in 1998. Yield: 5.50%

Plains All American Pipeline LP (PAA), through its subsidiaries, engages in the transportation, storage, transportation and marketing of crude oil, refined products and liquefied petroleum gas and natural gas from other liquefied petroleum gas (LPG) in the United States and Canada. This partnership Master Limited announced an increase of 0.80% in the quarterly dividend to 95.75 cents per unit. This was an increase of 3.20% in the first quarter 2010 distribution. This increased dividend benefits Achiever every year since it joined in 1999. Yield: 5.90% Read more