Make Money Trading Penny Shares

If you want to make money on the stock market but don't want to sit there looking at your computer all day and also you do not want to invest thousands. Then learn how to make money trading penny shares.

Some of the best returns from investments come from these types of shares, that is because they are bought at an extremely low-level and means any rise no matter how small is a significant profit.

Do you have spare cash lying around in a bank account or are you looking to just start investing?

The definition of a penny share is any thing under the value of £1; this is where relatively new companies issue shares at a low price to raise capital for their business. If you were to search the Internet then you will find thousands of investment opportunities. The problem is which ones do you choose and how do you go about doing this.

I spent many hours of my free time conducting research and reading e-book after e-book. All this did was confuse me even more. I found a lot of information contradicted others, and I felt that even though it was a small amount of money I was better off-putting it into a savings account. That was until I discovered an amazing way on how to make money trading penny shares website. It provided me with a simple formula on how to choose a company and how the professionals pick niche markets that are going to rise.

I now have a portfolio worth tens of thousands all from really small low risk investments. I want to share with you what I already know because not only will I be helping you but also the more people who buy the right shares the higher in value they go, so it's a win-win situation.

Find out more how I make money trading penny shares by clicking here.
Follow the method I did and watch your investments grow.

What Are the Best Penny Stocks to Buy Right Now? 2010

Some of my friends ask me: "Matt, what are the best penny stocks to buy right now, in 2010?"

I have to give pause every time someone new asks me that, simply due to one simple rule that I hold near and dear to my heart and to my trading account: Penny stocks are not long term investments. I know when people ask me that they are dreaming of nailing a scrappy startup company's stock at $1 a share and holding it for 5 years, then selling their shares for $500 each and making a million bucks or something crazy like that.

I don't always feel like telling them the whole deal that I am about to share with you, so you are benefiting yourself by learning the following lesson described in the rest of this article.

Listen folks, penny stocks are absolutely awesome for trading. I said trading -- not investing. There is just too many whipsaws in these types of microcap equities (fancy word for stocks). Now when I say trading, I don't mean locking yourself in your bedroom in front of the computer every minute the stock market is open.

Rather I am referring to a manageable approach to trading, that is doable even for people who have demanding jobs that prevent them from having access to a computer during the day. It's a system of identifying a promising pick, buying it, and waiting for it to hit a designated exit point. It's really very simple. It does not completely eliminate the risk of trading penny stocks but it helps to minimize it since you are not blindly buying a penny stock and then holding it for a long time regardless of what it does.

For instance, if you buy a penny stock and identify an area where you would like to sell for a profit, you sell it when it reaches that level, be it at 50% or 500% profit levels. On the flip side, you can buy a stock and define an area where you will sell if it drops to certain level. That way you cut your losses before you potentially lose your entire investment.Look, if you want to go out and buy some blue chip stock like GE or a tech giant like GOOG that's fine and you will likely do well over the course of 2010 and beyond. Just don't adopt that mentality for any microcap (penny) stock. I have seen too many people have their trading accounts wiped out because they believed a hyped up story of a microcap stock that was too good to be true.

If you would like to get 3 free penny stock recommendations with a smart plan to trade them like I described, you can visit microcapmillionaires.com and sign up there. We have nailed huge moves in cheap stocks and we don't plan on stopping any time soon. 2009 was an awesome year for our subscribers, 2010 will be better.

Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 free Penny Stock Picks here.

Why Trade Penny Shares?

Trading penny shares has definitely gained popularity over the years. Previously investors might just evaluate the middle as well as large cap businesses, regardless of whether it was with regard to long-term investment or just day trades. However with the appearance of traders trading penny stocks, the stock exchange marketplace has transformed. Before, people had to have massive bank accounts to be able to get a higher income. Generally it was simply because a person had to have not less than a couple of thousand dollars to be able to purchase a hundred of stocks of any medium size company. With penny stock investing, new possibilities have exposed for regular individuals.

You might ask, can you become a millionaire trading penny shares? Well it can be quite difficult in order to turn into a millionaire investing on any type of market. Every person is aware about the statistics; nevertheless penny stocks provide you with a benefit that you simply are not able to find in the majority of trading instruments. It is leverage! With the help of the leverage that penny shares offer to a trader, an ordinary person can start trading on the stock exchange. Additionally, most of them are becoming incredibly profitable traders, and this simply began with stock trading these types of very cheap shares.

Individuals, who treat penny shares as disposable, ignore the truth that a lot of enormous businesses have started out within the bargain bins. Think about if you could actually purchase stocks of those firms once they were 10 cents a stock? It really can be the factor that could not just allow you to become very wealthy, it also provides you with a lot of bragging privileges. That is what trading penny stocks are capable to do for you.

Get more information about penny shares on this http://penny-shares.org/ web site, where you will learn what penny shares are and why do you need to consider trading them.

Penny Shares To Watch - How To Find Them

Are you interested penny stocks or shares investment? Well, if so then it is important to understand the proper way of finding the best penny shares to watch. This is something that one needs to pay close attention to because one must make sure they are dealing with the right individuals and legitimate companies in order to make everything work. Remember, if buying and selling is done properly, an investor can actually make a significant profit from these types of shares but at the same time, one can as easily lose a huge chunk of their investment. Penny stocks or shares are extremely volatile and can rise and fall in value without any warning. The wise investor will be well prepared for this.

How to find penny shares to watch? Research is one of the first steps that must be performed. But of course, make sure to filter the information that you receive properly. There are plenty of newsletters available out there, both free and paid, that promises to report the most reliable tips when it comes to penny stocks or shares and it is important to find a resource that can be trusted with an established reputation. Think about it, if you rely on the wrong sources and end up investing in a particular share that has been promised would go through the roof then eventually flops; you could pretty much lose your entire investment. Of course, any investor also needs to be wary of scams because there are several of them out there waiting to take your hard earned money.

Also, make note of the fact that timing is also important here. One needs to be able to look at the data that they have been given and the ones that you have collected and make a quick decision if required. After all, the windows for making a great investment can come up at any given moment and one simply cannot wait because if you do, you just might miss out. However, with that said, one cannot be too meticulous because over-analyzing things can actually discourage an investor from buying stocks and these opportunities can be quite few and far between.

So there you have it, just a few of the important things that every investor needs to know with regards to finding penny shares to watch. Remember, finding the best source for information is your best and most successful chance at making the best possible investment.

Investing in penny shares requires much less capital to get started. Find a reputable broker with a proven list of penny shares to watch to begin your investment portfolio.

Penny Shares - Spotting a Good Investment

One of the most important things that one must do before making any purchases in the penny shares market is to properly prepare for what lies ahead. Spending a few hours researching can effectively help one bring in dividends. Besides, it is a well-known fact that quite a number of people tend to lose big investments due to the lack of preparation. How does one spot a good investment in this market anyway? Well, in order to help you get started, here are a few tips to keep in mind.

1. Learn about the history of a particular penny stock or penny share that you're interested in. If it's been proven to rise in worth continuously then it is safe to say that this pattern would only continue. Some people find this rather risky but you are not going to do this without performing any tests beforehand. Doing so should remove any uncertainties or inconsistencies when it comes to the buying and selling which could significantly alter the upward movement. Keep in mind that this type of investment is actually quite prone to bringing lower returns.

2. Make sure that the organization you're working with has a solid marketing strategy. Needless to say, if they don't have one that's viable for the long term then this could significantly affect the progress of your penny shares investment. Remember, besides looking at the penny stocks or shares itself, it is also imperative to look into the individuals or companies that you work with.

3. Whilst they might be helpful from time to time, industry experts advise that one does not rely on free penny stocks and shares newsletters for they may not be able to provide reliable information. Of course, in this business, accuracy is important because you will need it in order to make the best possible decisions for your investment. Needless to say, if you have money to spare then it would be better to use it on paid newsletters that would be able to provide you with the best possible information.

In spite of their appeal, there is nothing out there that will be able to guarantee that these penny shares are actually going to go up in price and as such, this is still a risky investment. But armed with the necessary information and reliable tips then one could significantly reduce the risks involved. After all, the choices that are made will greatly affect the outcomes of every trade that you enter. Keep this in mind and start investing today.

Investing in penny shares requires much less capital to get started. Find a reputable broker with a proven list of penny shares to watch to begin your investment portfolio.

Penny Shares Are Cheap

A company that has shares that are listed for sale at a price less than $5.00 per share is categorized as a penny stock and there are plenty of micro cap stocks going cheap! You can start investing in micro cap shares without needing a lot of cash to start with and that can make investing in penny stocks a great way to learn about the stock market.

Small cap stock investing is associated with a lot of hype because investors are attracted to the promise of making large returns with a small initial outlay. But do many stocks start at 10 cents and go to $5.00? Although it is easier to own a shares in a company that can double i.e. go from 20 cents to 40 cents than it is for a stock that is $20.00 to double to $40.00 the cheaper entry price comes associated with higher risks. Penny stocks are generally very illiquid which means their shares can often trade infrequently and they have in general less shareholders.. Shares can drop very quickly and you could find in a very short time that you have ended up losing your entire investment. If this sounds too risky to you then you will do much better investing your money into other, safer investments.

So if investing in penny shares fits your risk profile you need to know where to locate them.. You wont find micro cap stocks listed on the NASDAQ or the NYSE or any of the other large exchanges, instead you must look for them at 'over the counter' exchanges such as the pink sheets or the OTCBB. Penny stocks do not fall under the same regulatory procedures as other more conventional stocks, so even though they are legal they are still risky.

Small cap stocks are inexpensive to buy and that makes them attract to investors however you should refrain from investing all your money into the one stock but instead diversify into a number of stocks to spread out your risk.

A micro cap stock may be cheap to buy but that doesn't always mean that it will be an investment that will perform well. Due to the nature of micro cap shares, investors can become a victim of fraud so it is crucial that you always check out the stocks before you buy.

After you have found some companies you like the look of you can watch their progress for a while and then decide if you want to buy some shares in them. Never just follow someone else's tip blindly, but investigate the company yourself and then watch the stock to see how it tracks before investing..

You can reap the rewards from investing in the small cap stock market as long as you set yourself aside some time to learn all you can about what you are looking to invest in. You can apply what you learn by selecting some cheap, good value companies and the more you learn the better you will become and the more money you will make!

Looking for the best cheap penny stocks to buy? Check out Best Small Cap Stocks http://www.pennystocksandinvesting.com/best-penny-stocks.php
For more information about Investing in the penny stock market check out Cheap Micro Cap Stocks at http://www.pennystocksandinvesting.com/cheap-penny-stocks.php

Methods to Spot Good Penny Shares

It is essential to do your preparation before you start to purchase on the penny shares market.

Just a few hours spent in research will bring dividends, quite literally in truth! Many buyers lose large amounts of money due to lack of preparation, which leads them to make elementary mistakes of their alternative of shares. To make an excellent penny stocks investment there are a number of factors that that you must take into account before you purchase.

Are your penny stocks quoted on the OTC-BB? If that's the case it could be harder to seek out out essential trading figures and they don't seem to be sure by the strict requirements of other exchanges comparable to AMEX or the Nasdaq Small Cap. To be listed in these markets there are very strong code regulations with regard to transparency and Shareholder communication.

Look at the historical past the history of the penny stocks. If a inventory has proven to enhance in worth constantly over a time period it is seemingly that the pattern will continue. This sounds pretty obvious but it surely also works. You do however must test that there aren't any uncertainties or buying and selling inconsistencies which will alter the upward movement. This type of investment is prone to bring lower returns however higher stability than a more risky share.

Have they got a great marketing strategy? If an organization doesn't have an excellent viable marketing strategy for the next trading interval and a very good planning strategy for the longer term, then it is unlikely to realize good income or progress and should adversely affect the worth of your investment. All the time examine that any company that you're planning to spend money on has a superb business plan. It will be your cash that they are spending.

Choose the brains of professionals. There's a wealth of information on penny shares and you should make full use of it subscribe to good high quality, established, financial newsletters and publications that offer good tips about the very best shares and penny stocks.

A number of these are written by educated and experienced traders. You should strive to look at a broad vary of those, as it offers you a very good overview of what's happening in the penny stocks markets. And it will additionally give you an indicator of which sectors of the penny stocks market are the showing the most motion which can be where the chance for profit is most likely.

What you must keep away from are the many free penny shares newsletters and "daily tips from our skilled's" type of publication. Anyone who claims to have the ability to present you methods to make 1,000,000 shortly would presumably be repeating this method in fast succession and making themselves wealthy, reasonably than writing a free newsletter. Provides of recommendation on shopping for penny shares from buddies and kin could be very rarely of benefit. Except after all they're dispensing the advantage of their wisdom from the window of their rolls Royce!

If you will subscribe to a e-newsletter then spend as a lot as you can afford. Penny stocks buyers are, by their nature, properly conscious of the value of money. So if a e-newsletter is expensive and still has an excellent variety of subscribers then the chances are that it will need to have some good advice to provide, otherwise the membership would have left lengthy ago.

Lastly at all times think about the connection of the penny shares firm that you are considering to the marketplace. If they are producing photographic growth strategies when everyone is going digital then they will not be a very good bet. No matter how low your penny shares are they'll always go lower so beware there may be a superb purpose for that cut price, and although hindsight is beneficial, foresight is better.

If you wish to learn more, I noticed an excellent article that may make easier so that you can determine on the very best stock picks. Also, don't forget to check out tips on how to choose penny stocks with this common free e-newsletter, available at http://pennystocknewsletter.org/

Penny Stock Trading With Penny Shares

If you are new to penny stock trading then you may be wondering what the difference is between penny stocks and penny shares. There isn't much difference at all and in reality penny shares are just another name for penny stocks, so if you hear someone calling their penny stocks penny shares then you'll know that they're meaning the same thing.

Penny shares and penny stocks alike are stocks that are traded for typically below five dollars and are made available by smaller companies who are relatively new to the market. Penny stocks are traded on over the counter, or OTC on quotation services such as Pink Sheets and the OTC Bulletin Board. Penny shares are typically considered high risk investments by most industry experts and it is well known that with this sort of trading that you can either lose your shirt or make a tremendous profit literally overnight and this kind of volatility is what lures in many traders.

The penny stock industry is full of scams and illegitimate offers so it is essential that you do your homework on any source or other entity you choose to do business with so that you can ensure that they are in fact genuine. This means that you should not take anything you find online or in your email as truly legitimate and that you should always think twice if someone is promising you obscene returns overnight because in all likelihood it is a trick. This is not to say that the majority of penny stock newsletters and brokerages are illegitimate, and in reality the opposite is actually true and the bulk of newsletters and brokerages provide valuable services and information to their clients at sometimes free of charge. The problem is that there is still a good amount of fraudsters within this industry and if you are a new trader then you need to be careful so that you will not have to worry about losing your money the hard way.

Seth Lionni specializes in such areas as Penny Stock Trading and Penny Shares.

5 Tips For Investing In Penny Stocks

1. Penny Stocks are a penny for a reason.
While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker's money for an IPO. This doesn't make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.

2. Trading Volumes
Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn't trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding "dead money", where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.

3. Does the company know how to make a profit?
While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?

If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return.

4. Have an entry and exit plan - and stick to it.
Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you're out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.

If your plan was to sell at $0.12 and it jumps to $0.13, either take the 30% gain, or better still, place your stop at $0.12. Lock in your profits while not capping the upside potential.

5. How did you find out about the stock?
Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.

Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time), others in cash.

How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You'll start to notice quickly if you have subscribed to a good newsletter or not.

One other tip I would offer to you is not to invest more than 20% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 20% grows, you'll have more than enough money to make a healthy rate of return. Penny stocks are risky to begin with, why put your money more at risk?
Trading Penny Stocks | investment strategies for penny stocks
1source4stocks.com provides penny stock traders with online trading and investment tips, online trading strategies and penny stock picks.

5 Tips For Investing In Penny Stocks

1. Penny Stocks are a penny for a reason.
While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker's money for an IPO. This doesn't make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.

2. Trading Volumes
Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn't trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding "dead money", where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.

3. Does the company know how to make a profit?
While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?

If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return.

4. Have an entry and exit plan - and stick to it.
Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you're out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.

If your plan was to sell at $0.12 and it jumps to $0.13, either take the 30% gain, or better still, place your stop at $0.12. Lock in your profits while not capping the upside potential.

5. How did you find out about the stock?
Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.

Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time), others in cash.

How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You'll start to notice quickly if you have subscribed to a good newsletter or not.

One other tip I would offer to you is not to invest more than 20% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 20% grows, you'll have more than enough money to make a healthy rate of return. Penny stocks are risky to begin with, why put your money more at risk?
Trading Penny Stocks | investment strategies for penny stocks
1source4stocks.com provides penny stock traders with online trading and investment tips, online trading strategies and penny stock picks.

Why Short Term Trading Penny Stocks Is A Bad Idea

Search Google for penny stock and you will be deluged with sites promoting the active, short term trading of penny stocks. This attracts people due to the greed factor (the promise of huge % returns in short time) , the "I don't have much money" factor, and lastly the knowledge (or lack of) factor. All these sites prey on these three aspects to get people to sign up to day trade penny stocks or at least try to. Most of the time, their version of day trading is holding for a few days, rather than only go in and out the same exact day.
Now not all of these sites are bad. There are a few that are in it for the longer haul, really trying to find the diamond in the rough. The only issue that is never talked about is the true rarity of that happening. I do not have exact stats, but I would guess for every 1000 penny stocks, maybe less than 5 or 6 ever build up to a real company and get listed on a regular exchange. What is a regular exchange? Nasdaq NMS, Nasdaq small cap, or NYSE. The rest go to 0. It may take some time, but it happens - maybe a few get taken over or merge but rarely is it a huge boon to shareholders. Its usually a take under at some point. What most people eventually figure out, is that short term trading penny names rarely leads to any kind of substantial profits for anyone but the people who are issued stock to sell for free.
Penny stocks are usually Bullitin Board or more likely Pink Sheet Stocks (read 99% chance of scam/fraud) - the fact that the company is not even regulated nor required to publish financials that are audited on the pink sheets, and the double combination of the pump schemes to hype stocks so the company can sell shares to earn money (them and their buddies) makes it a huge game of musical chairs. You can always buy penny stocks (market order, please!) but you will have a hard time selling them. The market makers do not want this junk on the books either, unless they have orders to buy it and they can make money reselling the stock at a higher price. So they are very happy to have people who want to learn about trading try their hand at penny stocks.
Think about one aspect for a second - the primary way regular companies go public is: 1 - Have a great idea for a business, 2 - incorporate, find partners, build business some, 3 - if its going well, raise capital with private placement OR VC depending on the industry, 4 - expand further, grow margins and get profitable or very close to it with a well defined plan, 5 - plan to go public OR sell/merge company with a bigger competitor. Now contrast this to the way most penny stocks are capitalized: 1. Think of a business idea, 2 - buy a shell company (listed on pink sheets, but no business or revenues, you buy the name and the other stuff from someone), 3 - formulate a business plan, talk with brokers about getting the word out about your company, 4 - issue press releases about your business (usually whatever is hot at the time is a magnet "to do" stuff), issue shares to pay consultants to pump stock, issue shares to pay yourself a salary, issue shares for rent, issue shares for equipment, issue shares to maybe hire someone (all of which get dumped into the pump scheme designed to keep volume in the stock), .... and on and on. You should notice a difference between the 2 by now. One is a bona fide business from the get go, the other is basically a concept reversed into a public shell, with everything else as an afterthought. That does not mean ALL are like that, but a large percent are or do a majority of those things.
If that did not deter you from trying to day trading penny stocks, lets look at the capitalization issue. A lot of penny names have 10s of BILLIONS of shares outstanding, I personally have seen as many as 800 billion outstanding. So lets take a lower number, but prob average of 5 billion shares outstanding for company XXYY. Also, lets assume the stock is trading at 0.002 per share (penny stocks can trade as low as 0.0001 that is the lowest increment before 0). But we are giving XXYY the benefit of the doubt. Lets see what the market cap is on XXYY. 5bil x .002 = 10 million bucks market cap. This is common. Even at .0002 its 1 million market cap for something that no one would probably even buy for 50k. The company has 0 revenues (or very little at all), and is basically like saying your home based business with a big idea is worth 10mil - prob not even worth 10,000.00 with no sales. Think about it. If you actually had 10mil, would you give it to a company that has no products, has a unique concept and is working on a business plan? Hell no, not a chance. Even if a company was profitable, the general rule is a low multiple x earnings for last 12 months OR revenues, depending on the sector. This company has no earnings and no revenues or even a product. Its pure hype. So if the business makes 2 mil a year (profit, not revenues) you MIGHT pay 10mil for that biz. The hype is always so compelling - turn 2k into 1million bucks etc IF it works and IF it goes up bla bla bla, I can short term trading and make money.
The real driver of any company is only 2 factors: Earnings per share OR what another company would pay to take that business over. Lets see what it would take for company XXYY to earn .10 per share, then we will be super generous and let it trade at a 100 PE ratio so its a 10 dollar stock. That would be considered a home run in anyone's book, whether learn about trading or not. To earn 0.10 per share, the company NET PROFIT would have to be $50,000,000 - now lets be generous again, hugely, and say XXYY is in the software business and gets the same margins as MSFT (Microsoft) of 80%. This would mean their revenues are about $70,000,00.00 with no expenses at all. Most of the time, the entire market for the good or service these companies are in, assuming 100% market share and no competition is not even that big. How many people go from a concept to 70mil in revenues? Very, very few. Most cannot even get product sales much before they implode.
Usually people think they can outsmart the pump and get in early and out before its done, meaning they realize its a scam but the gambling mentality just keeps them trying it. This might work 1 or 2 times, but keep it up you will eventually lose every penny you put into your account as you get trapped in the stocks for 20,30,50% losses when it does not work.
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Learn How To Trade Penny Shares

A great place to start if you are a novice and want to get involved with the stock market is with micro cap stocks. You can make a significant profit with a little bit of skill and some luck thrown in for good measure without having to front up a large amount of money.

If you are finding it difficult to sift through all the information about each penny stock and decide which will be a good investment you can discuss them with your broker.

It may be a bit harder then when looking at more established shares to find good value micro cap shares to buy, but the rewards are definitely worth it..

However your persistence can certainly pay off in the long run as that small initial investment you made could turn into a lot of money!.

You should set up a watchlist once you've discovered some companies you want to trade in order to get some idea of their activity as the key ingredient you are looking for when trading micro cap shares is volatility.

It is time to take control of your money and invest in your future and the way you have decided you are going to do that is to trade micro cap shares!.

Again even if your broker recommends penny shares to invest in you should also research the company yourself beforehand because if you've chosen your broker wisely and they give you good advice you will learn how to find good companies and conversely if you get bad advice you know which type of companies to avoid.
If you want a more extensive introduction to investing in penny stocks check out How To Trade Penny Stocks Or alternatively for more information you can check out the following website Penny Stock Investing

Invest in Penny Shares Online

Many people consider investing in penny shares online. They are afraid to invest in penny shares because everyone says they are so risky and you will likely lose money. I strongly disagree with them. Penny shares are just like anything else. You can learn about them and get better at investing in them. I have been investing in them for a few years now and have loved every second of it!

The truth is, if you can invest in penny shares successfully, you can earn your financial freedom very quickly! Think about it, how many people see the potential in penny shares and just leave it alone because they are afraid of losing money. There are so many people in that situation and it is sad because you can make a lot of money very quickly.

This is my third year of investing in penny shares online and let me tell you, it has been one heck of a ride. I quit my 9 to 5 job over a year ago and now am a full time investor. There is nothing in the world like being your own boss. Nobody tells me what time to get up in the morning. I can sleep until noon if I want to. That is just of the many advantages you get when you invest in penny shares online!

You can do this exact same thing! There is nothing different between you and me. We both have the same potential and you can make just as much money as I have. The only thing that matters is how bad you want your financial freedom and how hard you are willing to work for it. It is tough in the beginning but it pays off a hundred times over!

You are living your life and you only get to live it once. Don't you think you should live it the way you want to. Do not submit to the norm of working 40 to 50 hours a week for 80% of your life. Take charge and make this life what you know it can be!
You can visit the following website for a review of my favorite tool I use to invest in penny shares everyday: Invest In Penny Shares. It has helped me countless times and I would recommend it to anyone who wants to invest in penny shares. Thank you for reading and good luck!

Crack Penny Stocks Sensationalclaim To Riches

Penny stocks are common stocks that trades for less than five dollars. The truth is, many of them are traded for measly pennies as well as less per share.

Lots of businesses forbid transacting in shares that are under five dollars in price. In consequence, this adds to a lack of liquidity that adds to the instability of those Stocks.

As a rule, Penny Stocks aren't traded on the conventional exchanges - NYSE, NASDAQ, or AMEX - moreover are not subject to the same regulatory or reporting obligations as stocks traded on those exchanges.

Still, it is important to mention a specific difference to the declaration above. Countless below five dollars dollar shares do trade on the regular exchanges and are bound to the austere regulatory and reporting stipulations of those exchanges same as all stocks traded on those exchanges.

Also if a stock trades under $1 on the regular exchanges for very long, they run the risk of been de-listed from those exchanges and would have to re-list on the Over The Counter (OTC) Bulletin Board or the Pink Sheets.

Genuine Penny Stocks are traded through quotation services such as the Bulletin Board or the Pink Sheets (recognizable with a .PK suffix) .
The Attraction Of Penny Stocks To Countless Investors
A little amount of cash could command a substantial quantity of stocks
The low price and promise for swift growth
Because of the cheap stock prices, even little moves can lead to gigantic percentage gains

Although a number of Penny Stocks are lightly traded, others volume can reach several hundreds of millions of shares traded each day because of their cheap price.

In spite of the fact that there is an clear allure for the potential of brisk and stellar profit from investing in penny stocks, there is a not so appealing aspect to take into account.

A large portion of stocks listed on the Pink Sheets or the OTCBB are manipulated and traded fraudulently, so Buyers Beware.

Disadvantages Of Penny Stocks
Listed below are various of the challenges involved counting causes of manipulation.

Lack of liquidity can cause enormous volatility and also at times make it tough to go into or exit a position.
Lack of regulatory obligations and no minimum accounting standards make penny stocks a lot more vulnerable to manipulation and fraud.
Pump and Dump schemes in thinly traded companies: Crooked traders buy the stocks cheap after that tout the stock on bulletin boards, chat rooms, or additional means as the most recent hot penny stocks or best penny stocks.
In consequence, they get others to run up the stock price - then they get rid of their personal shares at humongous gains.

To conclude, investing in penny stocks is not for all and sundry. It can be massively rewarding but it is also extraordinarily perilous.
Previous to diving in, examine your tolerance for risk scrupulously. Excercise due deligence in your penny stock picks.

Should you conclude that you have the guts to engage in it, commit only a tiny sum of your available investment funds to it, at least until you know what you are doing.
More thorough instruction, concerning Penny Stocks can be found at www.stock-trading-guru.com/penny-stocks.html

Added resources unrelated.
Other interesting information about travel and the Caribbean can be found at tobagosite.com

Crack Penny Stocks Sensationalclaim To Riches

Penny stocks are common stocks that trades for less than five dollars. The truth is, many of them are traded for measly pennies as well as less per share.

Lots of businesses forbid transacting in shares that are under five dollars in price. In consequence, this adds to a lack of liquidity that adds to the instability of those Stocks.

As a rule, Penny Stocks aren't traded on the conventional exchanges - NYSE, NASDAQ, or AMEX - moreover are not subject to the same regulatory or reporting obligations as stocks traded on those exchanges.

Still, it is important to mention a specific difference to the declaration above. Countless below five dollars dollar shares do trade on the regular exchanges and are bound to the austere regulatory and reporting stipulations of those exchanges same as all stocks traded on those exchanges.

Also if a stock trades under $1 on the regular exchanges for very long, they run the risk of been de-listed from those exchanges and would have to re-list on the Over The Counter (OTC) Bulletin Board or the Pink Sheets.

Genuine Penny Stocks are traded through quotation services such as the Bulletin Board or the Pink Sheets (recognizable with a .PK suffix) .
The Attraction Of Penny Stocks To Countless Investors
A little amount of cash could command a substantial quantity of stocks
The low price and promise for swift growth
Because of the cheap stock prices, even little moves can lead to gigantic percentage gains

Although a number of Penny Stocks are lightly traded, others volume can reach several hundreds of millions of shares traded each day because of their cheap price.

In spite of the fact that there is an clear allure for the potential of brisk and stellar profit from investing in penny stocks, there is a not so appealing aspect to take into account.

A large portion of stocks listed on the Pink Sheets or the OTCBB are manipulated and traded fraudulently, so Buyers Beware.

Disadvantages Of Penny Stocks
Listed below are various of the challenges involved counting causes of manipulation.

Lack of liquidity can cause enormous volatility and also at times make it tough to go into or exit a position.
Lack of regulatory obligations and no minimum accounting standards make penny stocks a lot more vulnerable to manipulation and fraud.
Pump and Dump schemes in thinly traded companies: Crooked traders buy the stocks cheap after that tout the stock on bulletin boards, chat rooms, or additional means as the most recent hot penny stocks or best penny stocks.
In consequence, they get others to run up the stock price - then they get rid of their personal shares at humongous gains.

To conclude, investing in penny stocks is not for all and sundry. It can be massively rewarding but it is also extraordinarily perilous.
Previous to diving in, examine your tolerance for risk scrupulously. Excercise due deligence in your penny stock picks.

Should you conclude that you have the guts to engage in it, commit only a tiny sum of your available investment funds to it, at least until you know what you are doing.
More thorough instruction, concerning Penny Stocks can be found at www.stock-trading-guru.com/penny-stocks.html

Added resources unrelated.
Other interesting information about travel and the Caribbean can be found at tobagosite.com

5 Tips For Trading In Penny Stocks

1. Penny Stocks are a penny for a factor.
While many of us dream related to trading in the next Microsoft or the next Home Depot, the reality is, the odds of you finding that once in a decade achievement story are slim. These companies are either beginning and purchased a shell firm since it was discounted than an IPO, or they simply do not have a business method powerful sufficient to justify investment banker's funds for an IPO. This doesn't make them an undesirable investment, but it should make you be reasonable related to the kind of organization that you are trading in.

2. Trading Amounts
Seek for a steady high quantity of shares being traded. Taking a look at the average volume could be misleading. If ABC trades 1 million stocks nowadays, and does not trade for the rest of the week, the in one day average will seem to be 200 000 stocks. To find in and out at an acceptable price of return, you must have normal amount. Also consider the number of trades a day. Is it 1 insider selling or purchasing? Liquidity ought to be the initial thing to think about. If there is no amount, you will end up holding "dead money", where the simply method of selling stocks is to remove at the bid, which will put further selling pressure, which results in an even lower sell price.

3. Does the business understand how to earn money?
Although its not strange to see a start up company run at a loss, its momentous to consider why they're getting rid of funds. Is it controllable? Will they must search for more funding (resulting in dilution of your shares) or will they have to seek a joint collaboration that favors one other company?

In case your company understands how to make an income, the corporation could utilize that funds to build their organization, which increases shareholder rate. You should do a few research to acheive these companies, nevertheless once you do, you lesser the danger of a loss of your money, and boost the odds of a much higher return.

4. Come with an entry and exit formula - and stick to it.
Penny stocks are volitile. They will swiftly move up, and move down just as promptly. Remember, in case you purchase a share at $0. 10 and sell it at $0. 12, that represents a 20% return on your investment. A 2 cent refuse leaves you with a 20% loss. A lot of shares trade in this range on an a day basis. If your investment money is $10 000, a 20% loss is really a $2000 loss. Do this 5 times and you are out of cash. Keep your stops close. In case you obtain stopped out, move on to the next possibility. The market is telling you something, and whether you want to admit it or not, its commonly better to listen.

In case your method was to sell at $0. 12 and it jumps to $0. 13, either take the 30% acquire, or better still, put your stop at $0. 12. Lock in your benefit even though not capping the upside possible.

5. How did you discover about the stock?
Most of us learn about penny shares through a mailing list. You can find a few good penny share newsletters, but, you'll find only as several who're pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the organization to unsuspecting newsletter subscribers. These subscribers buy although insiders are selling. Guess who wins here.

Not all newsletters are bad. Having worked in the business for the final 8 years, I have seen my share of unscrupulous corporations and promoters. Numerous are paid in shares, sometimes in restricted shares (an agreement whereby the shares can't be sold for a predetermined length of time), others in funds.

How to spot the excellent corporations from the bad? Only subscribe, and track the investments. Was there a legitimate opportunity to generate profits? Do they have a track record of offering subscribers with good chances? You'll start to notice immediately in case you have subscribed to an excellent newsletter or not.

The other tip I would offer to you isn't to invest further compared to 20% of your overall portfolio in penny stocks. You are investing to generate capital and preserve capital to fight one other battle. If you place too much of your capital at risk, you raise the chances of losing your money. If that 20% grows, you'll have additional than sufficient fund to generate a healthy value of return. Penny stocks are risky to begin with, why put your money extra at risk?
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Fundamentals Of Penny Stocks

In the American financial market Penny Stocks are those stocks that are being traded outside the major exchanges including the NYSE, NASDAQ or AMEX. Often these stocks are disapproved and considered pejorative. The definition of a penny stock in official jargon is - "a stock that is a low priced speculative security of a very small company" - regardless of whether market capitalization is there or not and if it is trading on a securitized exchange like NYSE or NASDAQ or in OTC like OTCBB/ Pink Sheets.

Penny stocks are also known by other names like micro-cap stock/ small caps/ nano caps and so on. These names are used inter changeably. It is to be understood that according to SEC definition the status of penny stocks is decided based on share price and not by marketing capitalization or the stocks' listing service. A penny stock is normally listed for prices below 5 dollars for one share. Traditionally shares that trade at 41 or less per share are referred to as penny stocks but as per SEC definition it is $5.

In the United Kingdom market penny stocks are called as penny shares. They refer to stocks and shares in small cap companies - which are defined as companies with market capitalization less than 100 million pounds and/ or price of a share at less than one pound and having a bid/ offer spread of more than 10%. FSA - Financial Services Authority in the UK - issues risk warning as part of standard regulation on penny shares.
There are many investors who are new in the market or novices are attracted by the penny stocks because they are low priced and they are seen to have potential for fast future growth. This perception happens when the stocks are being promoted avidly. But if investors are not careful they can have severe losses because it is a fact that many penny shares have lost all their value in the long term. The penny shares have less liquidity, there is no formal financial reporting and the business is fraught with fraud. Because they lack liquidity these stocks are easy to manipulate. Similarly sudden demand or supply changes in penny shares can cause volatility in stock prices. Requirements to get quoted at OTCBB are bare minimum only. That is why SEC warns that such stocks are in the high risk investment category and ensures that new investors are aware of all the risks involved.
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Buy Penny Shares

The expression penny Shares is often used, and not everyone knows what it means. In fact it was only when a friend suggested I buy penny shares that I made an effort to find out just what that meant.

I discovered that penny shares are generally speaking shares that cost less than 100 pence in a company which at the time of recommending the shares have a value of less than £100 million.

As well as that each share has a price differential of at least 10% between the price you pay to buy a share, and the price you would sell it for.

This all sounds very straightforward and simple, and it is, but it is also risky.

Now to make a gain involves some risk, and it is up to the reader to do sufficient investigating about the company whose penny shares he wishes to buy before committing himself.

It is well enough known that there are really only two reasons that shares are valued at under 100pence. The first is because the company whose shares are valued isn't much good, and on the face of it, that is probably a good reason not to take the risk. On the other hand in a time of economic downturn the Company may simply have fallen on hard times. This is where research is so important before committing yourself to purchase. Your investigations may well show that the Company is under new management, and has a new direction, and in that case it may be very well worthwhile making an investment.

The other reason for a low share value can be because the company is so new that it doesn't even have an established track record. With nothing to go on, the shares are bound to be marked low. Let us suppose in the course of your investigations a company is new, it is a mining company, and you find it has found coal on the Falklands, that would be a reason to invest or a new pharmaceutical company is testing a drug to reduce Autism. That may be worth an investment.

One big reason for investing in risky penny shares and not a blue chip company with a share value of 14 Pounds Sterling, can be put quite simply.

A 50 pence rise in 50 pence stock doubles your money, and could see your 1000 Pounds Sterling become 2000 Pounds Sterling. A 50pence rise in stock worth 14 Pounds Sterling doesn't set the heart racing. Penny shares may be a gamble, but properly researched you can see a great profit.

Check out Buy Penny Shares.
Ian Smith has been advised for a long time to buy penny shares and has been doing a lot of research on the best penny shares. He is of pension age, and was looking for some extra income to fund his vacations. He suggests you check out http://www.buy-pennyshares.com.