PennyStocks100 Trading Strategy

Retail is for Stockpickers

2012-02-11T22:45:00.000-05:00

Since September 2004, the S&P Retail Index has been caught in a sideways consolidation channel at between 400 and 500, unable to establish a sustainable trend in one direction or the other. During that time, the monthly retail numbers have been largely mixed. But in January, the retail data (excluding auto) was impressive, showing growth of 2.20% versus the estimate of 0.8%. It was the strongest reading in years.

Yet the initial optimism appears to be fading after seeing mixed reports from the nation’s retailers on Thursday. The early data suggests that same-store sales growth will be sub par compared to what we saw in January.

The reading in January may have been an aberration because of warmer than expected temperatures. The surfacing of cold weather in February apparently sent a chill through the pocketbooks of consumers. Also, the strong January sales may have taken away from spending in February.

The reality is the absence of a positive trend in retail makes investing in retail stocks more of a risk. You need to pick the right company. Even bellwether stocks such as Wal-Mart Stores (WMT) are struggling as far as its share price in spite of some decent sales results and same-store sales growth. But the current valuation deserves a look.

Youth oriented clothes retailer Gap (GPS) is a company that is clearly struggling at the cash register. Its February same-store sales crashed 11% year-over-year, well above the Street estimate calling for a decline of 6.80%. This followed on the heels of an 11% decline in the company’s Q4 earnings along with a FY07 forecast that was short of Wall Street expectations.

GAP expects comparable-store sales to be negative in the first half and turn moderately positive for the remainder of the year. Same-store sales are widely viewed as the best indicator of a retailer's health.

For investors, GAP is clearly a turnaround play that could pay off if it can somehow figure out how to attract shoppers. The fact is the company has great brand awareness and this counts for something in this brand conscious world we live in.

On the upside, you have a company like Best Buy (BBY), a dominant market leader in consumer electronics. The stock is just below its 52-week high, up 69% from its yearly low.

The reality is retail spending may be impacted by the higher financing costs associated with the rising debt loads across America. The personal savings rate is declining and was negative in January. Consumers are eating into their savings and you know this cannot be good for retail.

Note: you are welcome to post this article on your site if it is financial related. You must cut and paste the bio and make sure the web site link is live. Also please e-mail me to let me know.

Trading Using Multiple Time Frames

2012-02-08T11:51:00.000-05:00

Why do we need to Trade Using Multiple Timeframes?

To improve the efficiency of our trading strategy. We see the major Trend using a higher time frame than what we intend to use & a lower Time frame to enter a trade.

Say we want to trade using the Daily Charts. We take the Weekly charts to see the major trend. Suppose it’s an uptrend in a Weekly chart. We will tend to trade only long positions. We will use entries in the daily charts to enter long positions only. When sell signals are generated we will just exit our long positions. I.e. we don’t short sell.

Suppose it’s a downtrend in a Weekly chart. We will tend to trade only short positions. We will use a entries in the daily charts to enter short positions only. When buy signals are generated we will just exit our short positions. I.e. we don’t enter long positions.

Now that we are using two timeframes. Now coming to timing the entry of trades or adding additional positions. (Pyramiding) We can further use a Hourly chart to time our entries. Supposethe weekly & daily charts are in a uptrend. We will enter a long position or an additional long position when a hourly chart gives us a buy signal. Supposethe weekly & daily charts are in a downtrend. We will enter a short position or an additional short position when a hourly chart gives us a sell signal. This timeframe would not be used to exit the trades. It’s solely to improve the timing for entry. For exits we would use the signals generated in the daily charts.

Using multiple time frames to trade

We take three charts of the same security. First is the weekly chart. Next chart is the daily chart. Third chart is the hourly chart.

We will now use the daily chart to trade. We check the weekly chart for the weekly trend. Lest assume the weekly trend is up. So based on this information we will just trade long positions in the daily chart.

We look for a buy opportunity in the daily chart or we can see the hourly chart to enter a long position.

Now for entering additional positions we use buy opportunities in the hourly chart. We would exit based on the daily chart only, because we were trading based on the daily chart.

Similarly we can trade short where weekly charts are in a downtrend and daily chart generates sell opportunity. Additional positions are entered whenever sell opportunities are generated on the hourly charts.

For Day trading we can use the Hourly, 15 Min and 5 Min charts here we trade the 15 Minchart. Or we can use 15 Min, 5 Mins and 3 Mins charts here we trade the 5 Mins chart.

Stock market guide

2012-02-04T15:46:00.000-05:00

Stock market is an inquisitive place for many. It is because the place has given birth to many millionaires and is also responsible for turning millionaires to locals. Thus the bulls and bears have always been charismatic. Now millions of people invest in the stock market to make good money. The aura of the place is such that it is swarming with people any hour of the day and any season of the year. But only few know that how the stock market came into existence or what actually are its origins.

A short encounter with the past

The oldest stock certificate was issued in favor of a Dutch company in 1606. The purpose of this company was to benefit from the spice trade between India and the Far East. During the 18th and the 19th centuries the trade of spices drifted to England when Napoleon reigned over the place. With the development of United States of America as a colony to British and Alexander Hamilton (the first US secretary of the Treasury) flourished the American Stock Exchange. Hamilton played a crucial role in encouraging the trading in the Wall Street and Broad Street in New York. The New York Stock and Exchange Board now popularly known as the New York Stock Exchange was organized by the traders of New York in 1817 when trade and commerce bloomed there.

A precise survey of the Western stock market

• The Wall Street- a place where the whole of 18th century trade and commerce took place, Wall Street is a recognized place across the globe. The street was termed as Wall Street since it ran alongside a wall that was taken as the northern boundary of New Amsterdam in 17th century.

The Wall Street is known for the J.P. Morgan’s million dollar merger that created US Steel Corporation, the ruinous crisis that resulted in Great Depression and the “Black Monday” of 1987.

• The NYSE or the New York Stock Exchange is perhaps the foremost and so the oldest stock exchange in United States that is believed to be born in 1792. The significant aspects related to NYSE include the Buttonwood Agreement when 24 stockbrokers and traders of New York signed this accord and established the New York Stock Exchange and Securities Board which is now recognized as the NYSE; the considerable swings that the NYSE saw during the 20th and 21st century; the hitting of the 100 and later even 1000 mark by the Dow around 1971 and the mark of 10,000 that the Dow scaled in 1999.

• NASDAQ is the National Association of Securities Dealers Automated Questions. It is an apparent or virtual stock market where all trading is done through the electronic media. NASDAQ, the global and the largest electronic stock market today was first established in 1971 in United States at the time when computers were not as developed as they are today and it was very difficult to compute. The main exchange of NASDAQ is in United Sates while its branches can be found in Canada and Japan and it is also linked to markets of Hong Kong and Europe. NASDAQ functions by purchasing and selling the over- the- counter or OTC stocks.

• AMEX-was discovered in 1842. The putative father of the institution is Edward Mc Cormick (the commissioner of SEC) who endowed it with its current name. It started its journey as the New York Curb Exchange and its name is factual. The AMEX in contrast to the NYSE operates with the small and more dynamic companies some of which even make it to the NYSE board.

Hedge Funds 101 - Understanding Current Concepts and Lingo

2012-01-31T21:35:00.000-05:00

What exactly is a "hedge fund " ?

In essence , it is a managed pool of capital for institutions or wealthy individual investors that employes one of various trading strategies in equities, bonds or derivatives , attemting to gain from market inefficiencies and , to some extent hege underlying risks.

Hedge funds are often loosely regulated and usually are much less transparent than traditional investment funds. That helps them to trade more stealthilyt. Funds typically have minimum investments periods, and charge fees based both on funds under management and on performance.

Many experts contend it is a mistake to talk about hedge funds as an assett class : rather the industry embraces a collection of trading strategies. The appropriate choice of hedging strategy for a particular investor depends largely on its existing portfolio; if for example , it is heavily invested in equities, it might seek a hedging strategy to offsett equity risk. Because of this, discussion of relative returns between hedge-funds strategies can be misleading.

Hedge funds use investment techniques that are usually forbidden for more traditional funds , including "short selling: stock - that is borrowing shares to sell them in the hope of buying them back later at a lower price - and using big leverage rhrough borrowing.

The favoured strategies tend to change. It has been said that the hedge-fund industry was equity driven but that now in 2006 there is less long/short. It seems to be a much more diverse picture in 2006 with less of a concentrated exposure format.

Some of the most common strategies include

Convertible arbritrage : This involves going long in the convetible securities ( that is usually shares or bonds) that are exchangeable for a certain number of another form ( usually common shares) at a preset price , and simultaneously shorting the underlying equities. This strategy previously was very effective and was a standard. However this type of action seems to have lost effectiveness and seems to have lost favour in the crowd.

Emerging markets : Investing in securities of companies in the ever emerging economies through the purchase of sovereign or coporate debt and /or shares.

Fund of funds : Inveting in a "basket" of hedge funds. Some funds of funds focus on single strategies and other pursue multiple strategies These funds have an added layerof fees.

Global Macro - Investing in shifts between global economies , often using derivatives to speculate on interest-rate or currency moves.

Market neutral : Typically , equal amounts of capital are invested long and short in the market, attempting to neutralize risk by purchasing undervalued securities and taking short positions in ovevalued securities.

As you can see the terminolgy in dealing with "hedge funds " is both everchanging and confusing.

You should be fluent in both the language and the concepts in order that you can discuss and make intelligent rather than confused choices in your investments.

Remember it is you and not your broker / adviser who will pay the ultimate costs of negligent comprehension and investment planning.

Upside potential with convertible bonds

2012-01-29T22:20:00.000-05:00

Convertible bonds are bonds issued by corporations that are backed by the corporations' assets. In case of default, the bondholders have a legal claim on those assets. Convertible bonds are unique from other bonds or debt instruments because they give the holder of the bond the right, but not the obligation, to convert the bond into a predetermined number of shares of the issuing company. Therefore, the bonds combine the features of a bond with an "equity kicker" - if the stock price of the firm goes up the bondholder makes a lot of money (more than a traditional bondholder). If the stock price stays the same or declines, they receive interest payments and their principal payment, unlike the stock investor who lost money.

Why are convertible bonds worth considering? Convertible bonds have the potential for higher rates while providing investors with income on a regular basis. Consider the following: 1. Convertible bonds offer regular interest payments, like regular bonds.

2. Downturns in this investment category have not been as dramatic as in other investment categories.

3. If the bond's underlying stock does decline in value, the minimum value of your investment will be equal to the value of a high yield bond. In short, the downside risk is a lot less than investing in the common stock directly. However, investors who purchase after a significant price appreciation should realize that the bond is "trading-off-the-common" which means they are no longer valued like a bond but rather like a stock. Therefore, the price could fluctuate significantly. The value of the bond is derived from the value of the underlying stock, and thus a decline in the value of the stock will also cause the bond to decline in value until it hits a floor that is the value of a traditional bond without the conversion.

4. If the value of the underlying stock increases, bond investors can convert their bond holdings into stock and participate in the growth of the company.

During the past five years, convertible bonds have generated superior returns compared to more conservative bonds. Convertible bonds have generated higher returns because many companies have improved their financial performance and have their stocks appreciate in value.

Convertible bonds can play an important role in a well-diversified investment portfolio for both conservative and aggressive investors. Many mutual funds will invest a portion of their investments in convertible bonds, but no fund invests solely in convertible bonds. Investors who want to invest directly could consider a convertible bond from some of the largest companies in the world.

Choosing a Stockbroker

2012-01-29T17:31:00.000-05:00

It is true that even though you can choose your own investments you must still use a stockbroker to execute the orders. You do not have to rely in their advice though it may be helpful. You can make your own selections but you will still require their services to invest. There was a time when you had no choice about the type of stockbroker to utilize. There was only one type of broker, the full service brokers, and they controlled the market. The commissions that they demanded for their services were very high but this was the industry standard. This contributed to the notion that the stock market and stock market investment were beyond the means of the average person and only for the very affluent.

The initial loss of control of the market by these full service brokerages occurred in 1975 and discount brokers emerged. They charged a fraction of the fees the full service brokers did and as such were a big hit on the market. They offered the same great services but were affordable to the average individual as the cost were significantly lower. Another great innovation was the introduction of the internet. This was a great innovation as there was greater trading efficiency as a result. The overall effect of all the changes on the stock market was that individuals now had access to a ton of information that was never accessible to them previously.

It is a debate however whether these avenues have in fact enhanced investments and made better investors. In the case of persons that do their homework and seek out the truth behind the hype the answer is a definitive yes. The investors out their can now choose the type of broker they require from the range available. There are four categories of brokers. These are the discount/online broker, the discount broker that provides advice, the full service broker and the money manager. The discount/online broker is basically an order taker. They do not offer advice and will not tell you when to buy or sell a stock. There may be research available and other account management tools but the choice of investment in the stock market is entirely up to you.

The variation of the discount/online broker that assists customers is the nest type. They do not offer full consultation services but will have more research than order taking sites. They will offer newsletters and investing tips but most likely not recommend particular stocks. You are not totally on your own with this option but you will still need to do a lot in terms of deciding on the best stock investment. The full service broker will provide recommendations on specific stocks and the broker will also access your financial situation to determine your needs and investment options.

This service is suitable for the investor that does not have the interest or time in making their investment decisions. The money manager is made for the investor with a hefty investment sum. This broker will handle only significant portfolios and will invest and manage the entire account for a percentage of the assets under investment. This option can be expensive but very worthwhile in the long run.

Before you start stock trading first think if it is worth your time and money.

2012-01-26T13:29:00.000-05:00

That was the good news. The bad news is that those companies are selling you the tools and service only. They do not sell you any guarantees of success. It does not matter if you profit or lose money, the trading company will get its fee for each trade anyway.

Since you are considering going into the stock market, most likely you are planning to get a significant return on your investment which should also be better than what you would get buy investing your money into mutual funds (less risky than single stocks) or even no-risk certificate of deposits (CDs) where returns are guaranteed.

Well, how can you get such returns? The answer of course is simple and well known: buy low, sell high. If you do it most of the time you’ll be a successful stock trader. Now the first problem comes: how do you know when to buy? There are probably several ways to do that, we do not discuss this here, let’s assume that you know somehow or think you do know. Lets say you got lucky and the stock after you bought it is going up, just as you planned.

Now another problem comes: when to sell? After the stock is up 20%, what do you do? Sell now, or wait until it is up 50%, 100% or 200%? Do you listen to investor news and do what everybody else does: selling, buying more, or continue holding the stock? If you choose one of the first two options, how much of the stock you should buy or sell? Or if you hold the stock, are you sure it will continue to go up, or you may end up waiting until the stock price is back to the original and than lose it’s value resulting in your losses.

The truth is some people actually do know the answers to those questions most of the time and actually make profit. The question is, are you as good as those people? Most people are losing money guessing and trying to time the market. If you’re new in this game and not planning to spend much time on research, chances are you will lose. You will be competing with professional traders, big players and insiders who profit mostly because many others keep losing. Plus what are the chances that you can predict the market? The chances are very slim.

Some may argue: “I had that stock, I sold it when it was up 20%, but if I did not sell it at that time, now it would be up 300%. How stupid I was when I sold it, if I did not I’d made a lot of money. I have to do this again. It really proves that I can make a lot of money there and it’s easy!” That is right you can make a lot of money, but it is not that easy as it looks. Lets assume you did not sell the stock at the time it was up 20%. Then what makes you think you would wait until it is up 300%? You may have sold it when it was up only 25%. Or it may go down several times below 20% increase, you could have thought it was going down forever and sold it even with a lower than 20% profit.

The bottom line is that it is easy to look at the past and see all the mistakes you’ve made. However it is very difficult to do right things for the future. Unless you know market trends well, understand related industries and stock company financials, most likely you will not be able to make profitable trades. Even professional traders do mistakes and lose money. If you are not one of them or not planning to become one, your best bet would be investing into CDs, mutual funds or your own business.

Which Would You Rather Do Forex Or Daytrading

2012-01-25T04:06:00.000-05:00

Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save months of expensive trial-and-error learning.

Day Trading

Day Trading had its heyday during the bull market of the 1990's. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.

FOREX Trading

The Foreign Exchange Market (FOREX), the world's largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than $1.2 trillion dollars.

Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.

As a matter of fact, it's advisable to take FOREX training even before opening a trading account. It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to either enroll in a FOREX training courses or even purchase some books regarding FOREX trading.

There are pros and cons to enrolling into a FOREX course. For beginners a FOREX course is a rapid method of learning the basics of FOREX trading. Not much time is spent on history of the market or arcane economic theories. Often, on-line or phone support from a skilled FOREX trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.

The disadvantage is the price, as courses are more expensive than a paperback from the bookstore. Also, the course may just teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realise that nothing is predictable in the FOREX market, and many different strategies will bring profits in varying market circumstances. Also, knowledge of practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.

Stock Investment Research Guidelines To Eliminate Stress

2012-01-21T14:45:00.000-05:00

This day and age presents a large amount of opportunities to invest your money. But sometimes it’s difficult to choose the best investments that are suitable for your situation. If you are interested in investing your money in stocks then this article may be of assistance to you.

Below you will find ideas on how a little research can take the stress out of stock investing and hopefully fetch large returns from your stock investment.

Find Investments That You Trust The best way to choose the right stock is to research a stock company to find information that may or may not be desirable. Consider only companies, which have been trading in the public market for a long period of time. These companies often provide extra security and stability for a well maintained and branched out investment portfolio. Use the information you get from stock market quoting to determine if you think the particular company is a fit for you. Periodically keep yourself up to date on the companies your investing in, just because a company is stable now doesn't mean they'll be around several years from now.

Search for Recent News A good way to find profitable investments is by reading news stories that may influence the value of a companies stock in which you are going to invest your money. By updating yourself about the stock market you can be in touch with top stories of public companies, which can keep you informed about what is going on in the market (company’s stock value is going up or down). This can be especially useful if you get wind about major scandals or negative factors on time and are able to sell shares before the price drops. Alternatively this will also enable you to invest before an upcoming event that may cause a spike or upwards trend as well.

Keep an Eye On New Technologies You should also read news about technological progress and fields like health care and biochemistry. New advancements in these fields can cause a sudden rise in stock prices, quickly earning you a nice profit. Learning about new and advanced technologies before they become well known, can potentially give you long term benefits and opportunities to engage your money in other investments. Don't expect each and every new technology to cause an increase in stock value, but there is a better chance for making good profits from initial investments.

Invest for the Long Term It is important to know about long term investments. Usually long term investments give more benefits than many short term investments. Many short-term investments also do well (scheduling your purchase and sell ahead of time can also save you some heartaches); long-term investments will add stability and security to your portfolio.

Find Yourself Some Good Help With not too much trouble you will find many other people investing like you are. Ask around, there's a good chance many of them use a stock recommendation service or a broker they're happy with. In this case they'll gladly recommend their services and if you’re new this may be a smart way to get started - this should also help you to avoid stock broker fraud as well.

Saving money through investing in mutual funds

2012-01-16T20:54:00.000-05:00

A good mutual fund company will know how to use the investor's money to buy and sell large amounts of securities. The aim of mutual fund companies is to increase their profit margins. The individual who invests on mutual funds also has a similar objective of squeezing maximum profit out of it. It's a win-win situation, only if you know how to make the most out of investing in mutual funds and thus saving your money from being wasted. When selecting funds, be sure to take note of your goals and ambitions so that you can invest in the right fund.

Investing in mutual funds has emerged as the new buzzword amongst consumers in order to save money. But, for first time investors it requires a little bit of knowledge about the current market scenario. You need to keep in mind that when you are buying mutual funds you are actually investing in the shares of a corporation. You need to master the art of maximizing returns and minimizing risks to benefit most by investing in mutual funds. In terms of variety, flexibility and liquidity mutual funds are perhaps the best option.

A recent media poll confirmed that mutual funds are the most popular choices amongst investors primarily because of its risk-free nature. Mutual funds have its own share of advantages, which make it a preferred choice amongst most investors, big or small. Many people see it as an effective tax saving tool. Mutual funds have infact, took precedence over the traditional options of national saving certificates and public provident fund to save money.

If you are a starter, there are many courses which will provide you a veritable mine of information on how you can buy and sell your mutual funds to extract the maximum profit and save money through investing.

Higher risk mutual funds, however, work best when you want to make short-term investments. The Internet these days is replete with information on mutual funds. Even investors with no investment experience go for mutual funds to save money. Many consider award-winning funds as the most suitable investment option for people. But you need to bear in mind that the funds falling in the award-winning category may not suit your interests best.

Careful fund management and proper market survey can go a long way in helping you to save your taxes through mutual funds. Do not be hesitant to take the help of mutual fund brokers in case you are not sure about whether you are taking the right move or not.

Winning the battle of life becomes all the more easier with investing in mutual funds. So it makes sense to invest in mutual funds to make you capable enough to sail through even the worst financial situations of life without having any tension.

If retirement blues is haunting you or you are worried about your kid's future take heart. With investing in mutual funds you can save enough money to lead a happy and peaceful life. Let mutual funds ensure that you do not work for money, instead the money works for you.

Lack of a Trading Strategy

2012-01-15T22:04:00.000-05:00

If you know the pitfalls of trad¬ing, you can easily avoid them. Small mistakes are inevitable, such as entering the wrong stock symbol or incorrectly setting a buy level. But these are forgivable, and, with luck, even profitable. What you have to avoid, however, are the mistakes due to bad judgment rather than simple errors. These are the “deadly” mistakes which ruin entire trading careers instead of just one or two trades. To avoid these pitfalls, you have to watch yourself closely and stay diligent.

Think of trading mistakes like driving a car on icy roads: if you know that driving on ice is dangerous, you can avoid traveling in a sleet storm. But if you don’t know about the dangers of ice, you might drive as if there were no threat, only realizing your mistake once you’re already off the road.

Although trading involves risk, never treat it like gambling. You must have a solid trading strategy, one which you plan, test, and revise repeatedly. You need to stick to this strategy, and never act on spur-of-the-moment decisions. All you do when you act on a gut feeling is jeopardize any and all of the thoughtful planning you’ve done by giving yourself completely over to chance. Remember that you can never control where a single trade will end up, but you do have control over a long-term plan.

And don’t evaluate your performance on the basis of individual trades. A gambler might think that a small loss is a failure while one huge risky gain means success. Traders should never think this way. Instead, judge yourself by the consistency and profitability of your overall strategy. This is the only way to stay in control of your trading success.

To do this, of course, you have to build a solid strategy. This means developing a set of pre-defined rules that you follow consistently. You should set goals for each week, or possibly each month (but never for a single day, as there are too many things you won’t be able to control over such a short period of time). Next, decide on realistic profits and losses for each trade. Then, according to these markers you’ve set for yourself, carry out your plan without exceptions.

If your set profit for a trade is, say, $300, sell when you reach that milestone, even if you have a feeling the stock will rise. Otherwise, you corrupt your plan with too much risk, and you’ll never know if your overall strategy was successful or not. You may have gotten lucky with one trade, but you haven’t determined any kind of consistency.

Keeping to a strategy will allow you to revise what you’re doing, learning which goals and limits will work and which won’t. Straying from your strategy teaches you nothing useful that you can apply over the course of your trading career. So, while you may gain a few hundred, or even thousands, of dollars on a single trade, who knows how much knowledge you sacrificed, knowledge could have gained you tens or even hundreds of thousands of dollars in the years to come.

Seasonal Trading Strategy for Stock Funds and US Federal Employee TSP 401k Retirement Accounts

2012-01-13T10:11:00.000-05:00

“Sell in May and Stay Away” Words to live and invest by? I don’t know who coined the phrase but I did a bit of research and yes this strategy would have worked out for you is you had implemented it over the life of the TSP retirement account. Of course we know past performance does not guarantee future results but there is something here that makes this investor think that just maybe there is something more to the story this time.

There are five funds available in the Thrift Savings Plan.

The C Fund is based on the S&P 500 The F Fund is designed to match the bonds in the Lehman Brothers U.S. Aggregate (LBA) index. The G Fund invests in short-term U.S. treasuries The S Fund follows the Wilshire 4500 index The I Fund follows the EAFE index

From its inception in 1988 through the end of 2005 the C Fund (based on the S&P 500) has averaged 12.61556% per year. In the months October through May it averaged12.87611%. From June through September it averaged -0.26056%. For the same 18 year period, the F Fund averaged 3.356111% for the four months June through September. Had you sold all of your stock C Fund on May 31 and moved all your money into the F Fund and then moved all of your money from the F Fund back to the C Fund on September 30th, you would have realized a 3.616667% per year increase in your rate of return over 18 years. Let me repeat this, a 3.616667% annual increase based on only two trades per year.

From 2001 through 2005 the C Fund (based on the S&P 500) annual average was only 2.22%. Its average gain October through May was 9.24% while it’s June through September average was an appalling 7.02% loss. Utilizing the same strategy as above, our average rate of return would have jumped from an anemic 2.22% to a healthy 11.38%. That is an amazing increase of over 9% based on just two trades per year.

Since its inception in 2001 the S Fund (based on the Wilshire 4500 index) has averaged 9.314% and the I Fund (based on the EAFE index) averaged 6.56%. They show the same pattern of gains October through May, with gains of 14.05% for the S Fund and 10.368% for the I Fund annually during those eight months. They also continue the S Fund pattern of losses Jun through September, a 4.736% loss for the S Fund and 3.808% loss for the I Fund. Using the same strategy of eight months in the S and I funds and four months in the F Funds, you would have realized additional gains of 6.336% for the S Fund and 5.378% for the I fund brining your rate of return to 15.65% for an S+F strategy and 11.938% for an I+F strategy.

What do you think about this? Join the TSPcenter forum and let me know. My gut tells me we are in for a bad summer. Of course that could be a result of the pepperoni pizza I just ate.

Is Day Trading For A Living Your Cup Of Tea

2012-01-12T17:17:00.000-05:00

If you like working with other people's money, then maybe day trading for a living is what you should be doing. This type of trading works daytime hours only, from the moment the stock market opens at 9am until it closes at 4pm in the afternoon, you can do a lot of trading in that amount of time. Or maybe you want to do day trading for livings with your own money, that way if you loose it, then you have no one to blame but yourself. However, it may be a good way to watch your money grow too. The following is the basic definition of what day trading is all about. Maybe it is your cup of tea, maybe not, only you can decide.

What is Day Trading?

Day trading for a living is when you take a position in the markets with a view of squaring that position before the end of that day. Day trading for a living mean a trader usually trades many times a day looking for fractions of a point to a few points per trade, however, by the end of the day he or she will close out all their positions. The goal of the day is to capitalize on price movement within one trading day. Unlike investors, the day trader will hold positions for only a few seconds or minutes, and never overnight.

What day trading really means.

The meaning of day trading is actually a misunderstood term. True day trading means not holding on to your stock positions beyond the current trading day, meaning your not suppose to hold on to your stock overnight. Trading this way is really the safest way to do day trading, this way one is not exposed to the potential losses that can happen if the stock marked is closed due to news that can affect the prices of your stocks. There are many people out there today who are not very good “day traders,” they are actually more like con artists just out to take your money. Because of greed, they will hold your stock overnight, setting themselves up for the catastrophic elimination of their capital. In day trading currency, the term “day trading” changes slightly. Because currencies can be traded 24-hours a day, there can't' really be any overnight trading. You can have open positions for longer than a day with active stop losses than can be activated at any time.

There are a few different types of day traders out there today, it can actually be subdivided into a number of styles.

Scalpers- This type of day trading involves the rapid and repeated buying and selling of a large amount of stocks within minutes or seconds. The goal here is to earn a small per share profit on each transaction while minimizing the risk.

Momentum Traders- This style of day trading involves identifying and trading stocks that are in a moving pattern during the day, in an attempt to buy such stocks at bottoms and sell at tops.

The advantages of day trading for a living is there are no overnight risks. Because positions are closed prior to the end of the trading day, news and events that affect the next trading day's opening prices do not affect your client's portfolio. Day trading for a living has a greater leverage on your client's capital because of the low margin requirements as their trades are closed in the same market day. This increased leverage can increase your client's profits if used wisely.

An Overview Of The Stock Market

2012-01-09T00:49:00.000-05:00

When you are interested in investing in the stock market one of the first things you will need is a reliable and affordable stockbroker. At one point in time, a stockbroker was seen as a very high priced person that was extremely hard to understand. In today’s world, stockbrokers have become much different, they have begun to make their services cheaper to obtain and in such a way that is easier to understand. This is an extremely wonderful change for the simple reason that you will not be able to trade in any way, shape, or form without a stockbroker.

One of the major rules within the stock market is that no person is allowed to trade within the stock market unless they are a certified stockbroker. A stockbroker, within the United Kingdom twelve million investor’s trade in the stock market, performs every trade that occurs and each one has enlisted the services of a stockbroker.

So you are probably now wondering, what exactly can a stockbroker do for me? There is a wide range of abilities and services that any stockbroker can offer you, at the same time there are also various ranges of fees that will be collected from them. Typically, a stockbroker will charge a commission, a set fee, or some combination of the two. In regards to the services a stockbroker can offer you, there are three basic levels that include only execution, portfolio management, and advice.

When a stockbroker only deals with the selling and buying of particular shares, per the instructions you give them, this is generally called execution only or in softer terms dealing only. With this type of service, they do not offer you any type of advice on any action you want perform. Typically, investors that are experienced or novice in investing will use this type of service. Execution only is cheaper and extremely efficient the fees the stockbroker charges can range anywhere between £20 to hundreds of pounds, this will depend on the specific stockbroker you choose.

Portfolio management is extremely detailed and the most expensive type of service performed and dealing with advice is typically a little more expensive than execution only, because the stockbroker will offer advice and views on what is happening within the stock market. The stockbroker at this level of service will also take the time to explain anything you may not understand very well.

Within the portfolio management service, you can separate these into two other categories these are advisory and discretionary. When under the advisory category, the stockbroker will create a proposal of a portfolio for you; however, he or she will not take any action without express permission from you. Within the discretionary category, your stockbroker will completely run all aspects of your portfolio and will give you reports as needs on how the portfolio is working.

How To Trade Stock Timing Is Everything

2012-01-05T20:34:00.000-05:00

The following article lists some simple, informative tips that will help you have a better experience with how to trade stock.

Aim for the best timing in stock market trading. It is the only option for a successful stock market investor learning how to trade stock.

In order to raise capital and invest in the business, companies issue their stocks and the public may then buy and sell. The price varies depending on the supply and demand. This is what a stock market trader takes full advantage of.

The business of stock market trading can offer better profits to the investor compared to ordinary stock enterprise. The stock market offers a wide variety of stocks to choose from for any investor to go on with stock trading. There is always a moving stock out there amongst the thousands of others registered.

However, a careless attempt to proceed with stock market trading can produce undesirable result. Big losses can be incurred if the market trend is not properly predicted. Small profits would also frustrate the purpose of doing stock market trading. An uninformed stock trader may also end up waiting for that decisive moment that would never come.

Market Timing

The more authentic information about how to trade stock you know, the more likely people are to consider you a how to trade stock expert. Read on for even more how to trade stock facts that you can share.

To avoid the adverse effects of poor stock market trading, investors use market timing to forecast when the market will change its course. Market timing presumes that the decisive point can be predicted ahead. The direction of the market is predicted through a thorough examination of the price and economic data.

Best Timing

The consistency of such trend prediction is subject to many factors, that is why the aim of any would-be successful investor is best timing. At first glance, market timing sounds like a guaranteed way to make it big. This however requires exertion of considerable effort and persistence in carefully studying the various factors this is the proper way to learn how to trade stock.

Avoid mere speculating. Speculating is a desperate move when the investor hasn't done his homework.

Investors also buy stocks because they got a hot tip from someone. Most of these tips however prove to be false, as they are mostly given by parties with vested interests.

Market timing requires involvement in research to know the company's history and calculate the trend by charting the movement of the stock’s price. This involves analysis of the value of the stock to come close to accurate in predicting the trend. This is ideal in developing standards for when to buy and when to sell for the investor must accurately settle on the proper time to sell. One must also correctly determine when to regain, reselling the stock bought when it reaches its peak value. This way, the maximum profits can be realized.

Is there really any information about how to trade stock that is nonessential? We all see things from different angles, so something relatively insignificant to one may be crucial to another.

Make More Money Trading the Stock Market

2012-01-05T01:15:00.000-05:00

If you are a stock trader, how often do you base your buy and sell decision on technical analysis? If you use technical indicators in your trades, Ashkon Stock Predictor can help you make closer predictions of the stock market. Thanks to the dozens of simple pre-defined trading strategies and literally hundreds of combined ones, there will be no lack of strategy for any stock and any market situation. Choose the right trading strategy and increase your trading profits with Stock Predictor! Download Free Trial (16 MB)

Traditionally, analytical packages for the stock market cost thousands of dollars, and require their operators a high degree of competency in mathematical statistics. Ashkon Software innovative product provided, for the first time, an intuitive and simple to use graphical user interface to the complex process of trading, analyzing data and making predictions. Stock Predictor allows you to make weighted decisions on whether to buy, sell, hold, or avoid a particular stock or stock index by plotting stock charts and technical indicators. You can glance at the charts and make a quick trade decision, or scrutinize them with any of the built-in trading strategies.

Are you sure you are selling your stocks at the right time? Limiting your losses and protecting your gains is a rule of thumb for every investor. Making a trade decision is risky and time-consuming. You can reduce your risks and save time by using proper analytical tools. Stock Predictor saves your time by providing comprehensive analysis of technical indicators for all of your stocks.

Do you have a trading strategy? If you do, how do you know that the strategy of your choice is the most effective one for a given stock and under the circumstances? Stock Predictor helps you choose the right trading strategy for a given stock or group of stocks, supporting multiple pre-defined trading strategies. Running the strategies against a single stock, stock index or a group of stocks makes it easy to calculate and compare cumulative and summarized returns on investment. Choosing the best trading strategy for a particular stock or group of stocks can increase your bottom line dramatically.

Having access to prior performance of a given stock certainly helps developing the right trading strategy. Stock Predictor provides access to historical data at no extra fee with built-in downloader. You can import data into Stock Predictor from a different source, or export data to process it in an analytical application of your choice.

Despite having all the features of advanced analytical packages, Stock Predictor does not cost an arm and a leg. At only $295, Stock Predictor is extremely affordable for any stock trader.

Stock Predictor is available for immediate download. Get your free evaluation copy at http://www.ashkon.com/sp.html and bring your trades to the new level of competency!

Of Stockholders And Stock Market

2012-01-02T15:12:00.000-05:00

A copper mining enterprise Stora Kopparberg first introduced the system of stock in the 13th century. The financial backers and owners felt the need to raise money for investment in the new projects of the same company so they started the method of stock and shares. It was also required in order to ward off the threat to the ownership rights if the company was sold, which would mean complete loss of control.

The investors got the monetary support they were looking for and at the same time solved ownership issues in case the company was sold by granting stocks to the people. Plus, they sold a part to people and still retained control over the company. Thus, the owner had some portion of the assets, some power to make decision conditionally. In return, they shared a part of the profit with the stockowner as dividend.

Financially, stock implies the ownership or share in a corporation. It gives the stockowner the right to claim a share in the assets and income of the corporation. The two types of stocks, preferred and common differ in many respects. The common stock owners can vote at the shareholders' meetings whereas the preferred stockowners cannot vote. Common stockowners get dividends declared by the company, whereas preferred stock owners have higher claim in assets and income of the company. Preferred stock entitles the owner to have his dividends earlier than the common stock owner. Preferred stock owner gets the priority when the company goes bankrupt. Besides these two, the other types of stock are dual class shares and treasury stock.

A stockowner is not liable to losses in case the company closes and has loans to pay back. The loss of the stockholders is limited to the money that would have been made by converting the assets into cash since all the money would be used to repay the loans to the creditors.

A stock exchange is the place where trading of shares is carried out. Individuals and companies sell and purchase shares on a large scale. Generally, a particular company trades only in one specific market and is said to be on the list of that particular stock exchange. However, big multinational companies can be listed on many stock exchanges. This is called inter-listed shares.

There are various methods to buy or sell finance stocks, but the commonest among them is through the mediator called stockbroker, who actually transfers the shares from one owner to another. Stocks can be bought directly from the company also.

The stock market of a country is an indicator of its economy, which just goes to show the growth and power of the stock market.

What is the stock market all about

2011-12-31T14:17:00.000-05:00

Thousands of people who have money in any type of account for their retirement can consider ourselves participating in the Stock market. But have you pondered about the functionality of how this interesting market works? Imagine being at a regular auction, where instead of nice bits such as cars and antiques are being bidded away, think of bits of public companies being auctioned away.

To make a less confusing analogy, think about the role of an auctioneer. The auctioneer's role is to get the highest and best price for each product. Well, the stock exchanges around the globe kinda operate in the same fashion. The auctioneer role, is called a Market Maker. In a stock sale, there is no stable, set price for stocks, but instead, setting the price is the role of the Market Maker.

The price will fluctuate greatly, because the ying and yang of the market, the buyers and sellers, will bid on either the stock going lower, or higher. Usually when you see a stock price go up, it means that the buy price of a stock has increased. This is vice versa when a stock declines in value.

Now I am sure you have seen visuals on the major news networks of how a stock floor looks. You know, the floor where tons of stark raving mad folks, scream numbers and look at monitors and make trades all day. The trading day starts at 9:30 in the morning Eastern Time, and stops at 4:00 in the afternoon Easter Time. Depending on business news, market forecasts, world events, and a few other things thrown in between, can dictate how much volume a market can have in a day.

The last couple of paragraphs have mentioned all of the particulars of two major markets, the New York Stock Exchange(NYSE) and the lesser known American Stock Exchange. But there is a third one too! It is called NASDAQ. Now what makes NASDAQ quite unique from the other two, is that this market is controlled by computers. Despite the technological advances of this stock market, NASDAQ still has the conventional bidding water of NYSE and American Stock Exchange. The buyers and sellers have their own areas to buy and sell stock, and bid through a quote system called Level II.

The great thing with stock trading, is that in order to be successful with trading stocks, you do not have to be in the pit, bidding like a madman on the hunt for their lives. Not at all! You can now use the very computer in your house, or go to a trading office if you live in a big city and trade stocks. Many different internet based brokerages are out there, and have plenty of materials to get you started on your way to becoming a great stocktrader!

Intelligent Stock Trading

2011-12-26T20:16:00.000-05:00

If you want be a successful penny stock trader, you’ll need to be an intelligent trader. There are very few requirements to start trading in penny stocks. It can be broken down into three main things.

1. Money:

The money we are talking about is not just the money that is sitting in your bank account. It is not the money that you use to pay for your rent, your car or your food. Penny stocks can be extremely unpredictable and although you might make a great deal of money it is also true that may lose everything, so it is important especially when you are starting out with penny stocks that you only use money that you can afford to lose. After you have built up a nice profit, you can re-invest your profits from past trades which will snowball your earnings.

2. Knowledge:

This is without a doubt the single most important factor in determining whether your budding career as a penny stocks investor will be a spectacular triumph or a dismal failure. If you are a newcomer to investing of any kind there are various guides you can buy and it is a good idea to read several of these before spending any money.

Penny Stocks: The Next American Gold Rush by Dan Holtzclaw Stock Investing for Dummies by Paul Mladjenovic The Guide for Penny Stock Investing by Donny Lowy

These are all good and although they will not help you with specific decisions such as whether to buy a particular penny stock, or when to sell, they give you a good background on how it all works and are invaluable in building a good knowledge base.

3. Make A Plan:

Before you investing any money, make an investment plan and stick to it at all times. This will help you become disciplined and will also help you organise your time and investments. Keeping things simple will result in less stress. Your plan should consist of the investments you are going to make and why and how much you are investing in them. It should also include your exit point (the price which you will sell your investment at to take profit) and also the time you want to allocate for your investments each day (i.e. The time it takes to monitor and research them).

Now you have got all the major elements in place you are set for the roller coaster ride that is the world of investing in penny stocks But remember that knowledge is the most powerful tool you have to make your penny stocks successful so start learning today.

A Review Of The Stock Market Crash Of 1929

2011-12-23T23:49:00.000-05:00

The great Wall Street Crash just previous to the Great Depression of the 1930s has become a part of North American legend. People speak of the crash, its causes and its consequences, with great authority, although few people actually understand the fundamentals that led to the crash, and fewer still the intricacies involved in it. This article will detail a short review of the crash, analyze some of the myths evolving out of this period in American history, and also answer some questions such as why the crash happened, and if something like it could happen again.

The crash began on October 24, 1929 and the slide continued for three business days, ending on October 29 1929 (as we can see, the crash did not occur in the ‘30s, as many people believe). The first day of the crash is known as Black Thursday, and the last day is called Black Tuesday. The crash began when a rush of nervous spenders panicked and rushed to sell their shares- over 13 million stocks were sold on that first Thursday. In an attempt to halt the slide, several bankers and businessmen gathered and tried to rally the numbers by buying up blue-chip stocks, a tactic that had worked in 1909. This was to prove only a temporary fix, however. Over the weekend, while the stock markets were closed, the media added to the fear of investors as the published the wrap ups to the week. By Monday, a fearful populace, nerves on edge due to the reports, were waiting to liquidate. Again, industrial giants and other businesses tried to halt the panic by demonstrating their faith in the system by buying more stock, but the slide would not stop. The market did not recover its value until almost a quarter of a decade later.

As with any legend, the Wall Street Crash of 1929 carries with it several mythical misconceptions. To start with, the Crash did not lead to the Great Depression. In fact, many financial analysts and historians are still not sure to what degree the Crash even contributed. The economic forecasts were poor before Wall Street fell, and it was poor people who could not even afford to think about stocks that were the most affected by the Depression. For these people, poverty was mostly caused by very poor farming conditions. There was also not the onslaught of suicides that is commonly referred to- a few investors did succumb to depression, but their numbers are generally agreed to have been very small indeed- enough to count on one hand.

What was it that caused this Crash? Because the market had been doing so well, many Americans were investing- many more, in fact, than could afford it. These people were investing on speculation. This means that they were buying stocks with an eye to selling them in the future for a higher profit, and to achieve the capital to invest they borrowed from banks. When prices began to drop, people realized they would not be able to pay their debt, let alone make any money,. They rushed to get out as soon as possible. To prevent panics such as this in the future, buying on speculation is now illegal.

Blue chip stocks not a poker game

2011-12-21T12:09:00.000-05:00

Investing in conservative blue chip stocks may not have the allure of a hot high-tech investment, but it can be highly rewarding nonetheless, as good quality stocks have outperformed other investment classes over the long term.

Historically, investing in stocks has generated a return, over time, of between 11 and 15 percent annually depending how aggressive you are. Stocks outperform other investments since they incur more risk. Stock investors are at the bottom of the corporate "food chain." First, companies have to pay their employees and suppliers. Then they pay their bondholders. After this come the preferred shareholders. Companies have an obligation to pay all these stakeholders first, and if there is money leftover it is paid to the stockholders through dividends or retained earnings. Sometimes there is a lot of money left over for stockholders, and in other cases there isn't. Thus, investing in stocks is risky because investors never know exactly what they are going to receive for their investment.

What are the attractions of blue chip stocks?

1. Great long-term rates of return.

2. Unlike mutual funds, another relatively safe, long term investment category, there are no ongoing fees.

3. You become a owner of a company.

So much for the benefits - what about the risks?

1. Some investors can't tolerate both the risk associated with investing in the stock market and the risk associated with investing in one company. Not all blue chips are created equal.

2. If you don't have the time and skill to identify a good quality company at a fair price don't invest directly. Rather, you should consider a good mutual fund.

Selecting a blue chip company is only part of the battle - determining the appropriate price is the other. Theoretically, the value of a stock is the present value of all future cash flows discounted at the appropriate discount rate. However, like most theoretical answers, this doesn't fully explain reality. In reality supply and demand for a stock sets the stock's daily price, and demand for a stock will increase or decrease depending of the outlook for a company. Thus, stock prices are driven by investor expectations for a company, the more favorable the expectations the better the stock price. In short, the stock market is a voting machine and much of the time it is voting based on investors' fear or greed, not on their rational assessments of value. Stock prices can swing widely in the short-term but they eventually converge to their intrinsic value over the long-term.

Investors should look at good companies with great expectations that are not yet imbedded in the price of a stock.

How is the Weekly Spot Uranium Price Calculated

2011-12-18T03:07:00.000-05:00

Trading in the uranium market is done by a very small number of players. After all, there are about 440 nuclear reactors worldwide, a few dozen trading firms, fuel managers, and a relatively small number of utilities who participate in the actual buying of uranium. It’s the front end of the nuclear fuel cycle. Without it, nuclear reactors shut down. The uranium price has been skyrocketing since Christmas week 2000, with no end in sight. Forecasts range from $50/pound to well above $100/pound. Few believe the spot uranium price will go lower in the near future.

It’s become a fun game. Every Tuesday night (Monday afternoon, if you are a subscriber to the Ux Consulting), you will see the spot uranium price posted on the company’s front webpage. Moments later, the Yahoo and other Internet chat boards light up with commentary about the current uranium price and where it might head next. The spoiler is that TradeTech LLC issues its spot uranium price on Friday to subscribers and to the general public on Sunday night. Investors have been betting on the price swings of their favorite junior uranium stocks (more leverage, more risk/reward) by trying to second-guess the uranium spot price. Now, you can find out exactly how Ux C arrives at their weekly spot uranium price, from the president of Ux C, himself: Jeff Combs.

StockInterview: How does Ux Consulting arrive at your weekly spot uranium price?

Jeff Combs: We have a pretty specific definition. What we’re looking for is the lowest offer of which we are aware, at around the time we publish the price. The quantity being offered has to meet certain parameters. It has to be a certain size transaction within a certain timeframe. So we’re not really trying to cover transactions, per se. Obviously, where there is a transaction that takes place, there’s an offer embodied in that. We’re really trying to capture where the market is going based on current offers, rather than where it has been.

StockInterview: So is your published spot price more of a predictor than an actual trade?

Jeff Combs: It’s a predictor only in the sense that the next deal is likely to be done at the lowest offer price if the market is working efficiently. It’s like in the stock market where the lowest offer price will be taken first, although the stock market is a lot more efficient than the uranium market. Thus, we aren’t predicting the price of the next deal per se, but reporting the lowest offer price, which is an indication of where the sell side of the market is at that point in time.

StockInterview: So the weekly published spot uranium price is not based upon an actual sale of uranium that took place that past week?

Jeff Combs: Since it’s more of a forward-looking concept, the sale – that is, the coming together of buyer and seller - hasn’t necessarily taken place. But the level of the lowest offer indicates where the market is at that point in time. The sale itself shouldn’t deviate much, if any, from the offer price. This is especially true in a sellers’ market, where buyers don’t have much negotiating power. But it’s also true in a buyers’ market, as sellers are looking to offer an attractive enough price to encourage the buyer to take the material.

Chasing Value Versus Growth

2011-12-17T07:27:00.000-05:00

A lot of opinions had been thrown regarding the benefit of value investing versus growth investing. The proponents of each styles of investing insists that their method is superior over the other.

I believe that each has its own merit. Being a proponent of value investing, let me state the case for value investing. First, value investors buy companies in a mature industry. That said, it is easier to predict earning of such company. This is why I lean towards value investing. I am in favor of reducing risk instead of chasing return. Anybody can make an estimate that a small biotech company A will rake in X amount of profit after several years. But, if your prediction is not accurate, then how do you determine the fair value of the common stock? Your valuation will be out of whack. Disease comes and go. Technology fames and fades. It might defy common sense to some but I prefer a low or no growth industry.

Another benefit of investing in value stocks is that you might get decent dividend yield from the companies. They are growing less and management feel that they do not need all that profits to fund expansion. As a result, they propose dividend payments to shareholders. This helps reduce risk.

Having said that, I believe that the return of growth stocks will be higher than value stocks. No, I don't mean you can profit handsomely buying overpriced stock. You should of course buy it at a reasonable price. You should not overpay for any stocks, including growth stocks. Growth stock is companies that are growing or expected to grow rapidly in future. Is advertising a growing industry? Yes, but it is not growing big. How about pay per search or pay per call advertising? Oh, yes. If you invest in these types of companies, you are investing in growth stocks. These new forms of advertising is less than 5 % share of total advertising budget. Can their share grow? You bet. Just like television gets some share of advertising pie, pay per click advertising will get more of its share if it is cost effective for advertisers to do so.

We can say that value investing takes less return for engaging in little risk. Growth stock, on the other hand, takes in more risk in order to garner greater return. That is fine. There are, however, other kind of investing that will burn your pocket. A lot of investors engage in an investing style that get little reward while taking a big risk! Buying a stock at any price is one example. Do not misunderstand growth stocks with buying at any price. It is just plain silly. There are calculations and predictions involved in buying a common stock. Determine its fair value and decide whether you want to invest on a stock based on the risk/reward that it offers.

Constant Access with Stock Trading Online

2011-12-13T17:40:00.000-05:00

In a world built on capital, we humans are forever vying for that next big money-maker. It seems that everybody forever desires more cash. Some strive for a senior education; others compete for that big promotion. No worry what the method, we all find a way of increasing our income. Investing is a customary form of making an added buck. With the obsession of the stock market in gorged affect, many of us chance on that up-and-coming business, or upright product that has the latent to fuel in value. We know that shares can sky-rocket in appraise if purchased at the right time. A blessing to many investment junkies is stock trading online. The stock market is now at your fingertips.

If you've never played the stock market, it may be time to inhibit it out. Many people make millions in selling and selling. Haven't you heard about the UPS shares? Those people got rich. It's amazing where a little chance can take you. With stock trading online somebody can have constant access to the market. Hop on your computer and inhibit out the websites that can help you with this process. It doesn't worry if you're looking to squander a little or invest a lot, there is something just waiting for you. The great thing about the Internet is the information. You can find an abundance of trading tips and truth about the stock market for free. This way when you commence stock trading online, you won't be in the dark.

We hope that the first part of this article as brought you a lot of much needed information on the subject at hand.

A few living back, my best friend hopped on the stock market bandwagon, and purchased some shares. When he began this little venture, he purchased on the recommendation of a partner who had been trading for years. After selling a number of shares at 10 bucks a pop, he was keen to go. It wasn't long before the shares had amplified to 60 bucks a pop. He took the innocent road and sold immediately. I think that this was a astute decision. He made the currency and puzzled nothing. With stock trading online, shrewd when to fold is key. Just like with gambling, you have to know when to currency out. Make some money, but don't get greedy. Before you know it, the shares have dropped below your purchase price. Stock trading online is a amazing way to veer a profit and make that added cash. Before you skip online and flinch investing, inhibit out some websites for figures and pointers on the contest of stock trading. A better understanding of the affair will pay off in the end.

10 Golden Rules for Stock Trading Success

2011-12-09T09:29:00.000-05:00

Your stock trading rules are your money. When you follow your rules you make money. However if you break your own stock trading rules the most likely outcome is that you will lose money.

Once you have a reliable set of stock trading rules it is important to keep them in mind. Here is one discipline that can reap rewards. Read these rules before your day starts and also read the rules when your day ends.

Rule 1: I must follow my rules.

Naturally if you develop a set of rules they are to be followed. It is human nature to want to vary or break rules and it takes discipline to continue to act in accordance with the established rules.

Rule 2: I will never risk more than 3% of my total portfolio on any one stock trade.

There are many old traders. There are many bold traders. But there are never any old bold traders. Protecting your capital base is fundamental to successful stock market trading over time.

Rule 3: I will cut my losses at 5% to 15% when I am wrong without question.

Some traders have an even lower tolerance for loss. The key point here is to have set points (stop loss) within the limits of your tolerance for loss. Stay informed about the performance of you stock and stick to your stop loss point.

Rule 4: Never set price targets.

This is a style that will allow me to get the most out of rising stocks. Simply let the profits run. Realistically, I can never pick tops. Never feel a stock has risen too high too quickly. Be willing to give back a good percentage of profits in the hope of much bigger profits.

The big money is made from trading the really BIG moves that I can occasionally catch.

Rule 5: Master one style.

Keep learning and getting better at this one method of trading. Never jump from one trading style to another. Master one style rather than become average at implementing several styles.

Rule 6: Let price and volume be my guides.

Never listen to any opinion about the stock market or individual stocks you are considering trading or are already trading. Everything is reflected in the price and volume.

Rule 7: Take all valid signals that show up.

Don't make excuses. If an entry signal shows up you have no excuse not to take it.

Rule 8: Never trade from intra-day data. There is always stock price variation within the course of any trading day. Relying on this data for momentum trading can lead to some wrong decisions.

Rule 9: Take time out.

Successful stock trading isn't solely about trading. It's also about emotional strength and physical fitness. Reduce the stress every day by taking time off the computer and working on other areas. A stressful trader will not make it in the long term.

Rule 10: Be an above average trader.

In order to succeed in the stock market you don't need to do anything exceptional. You simply need to not do what the average trader does. The average trader is inconsistent and undisciplined. Ask yourself every day, "Did I follow my method today?" If your answer is no then you are in trouble and it's time to recommit yourself to your stock trading rules.

How To Undertake Free Stock Research

2011-12-06T18:54:00.000-05:00

Stocks are not constant. They increase, decrease and disappear. In fact, investing in the stock market is a risky endeavor not to be taken lightly. You name it-- you may start out happy with the high standing of your stocks and after an hour or two turn sad because your stocks have somehow lowered down below their original value. They may actually plunge, slamming down to the lowest values fathomable. You may emerge feeling depressed that you’ve lost an investment that you’ve worked hard for and had much hope in. For this reason, investing in stocks can be both exhilarating and disconcerting.

To avoid such unsightly scenario, it would be best to do some research before investing all your hard earned savings on stocks. Stock investment is not for the faint hearted; it is for those smart individuals who knew how to manipulate the stock market for their advantage. These people know the importance of stock research and have spent a great deal of effort, time and even money just to come up with the best tactics that can help them in their quest for enormous stock returns.

The internet is a good venue for conducting research on stocks since you are able to access various online sources pertaining to stocks. The best thing about these sources is the fact that they are free. You might ask yourself why conducting stock research is critical. The answer is clear.

A stock research is conducted in order to know what stocks are favorable for investment and which stocks are to be avoided. It is also conducted to know the fluctuations in the stock market, this way businesses as well as private individuals are guided when to sell or when to buy additional stocks.

In addition, there are some free stock research providers online that offer their expertise by helping people reclaim their money from old bonds and stock certificates. Most of their clients are comprised of banks, estate and stock brokers, lawyers, and private individuals. Their services also include research on a company’s history and old stock shares dating centuries back.

There are also other free stock research providers that offer consultation services and at the same time assist members in choosing the stocks to invest on. These providers are stock investors themselves, what they actually do is to make the initial investment in a certain stock which they assess is profitable and then they let their members to also invest in the same stocks. If they gain their members will also gain. They religiously conduct stock researches in order to update their members when to sell, or when to buy additional stocks.

They also keep track of whatever changes in the stock market since they know that even a slight fluctuation in the stocks have significant effect on their investments as well as on the investments of their members---and the best thing about all of these services is that they are for free. If it’s your first time to invest in stocks it would be best to join such free stock research provider online. Keep in mind, time is critical since they accept only a limited amount of members.

Not Limiting Your Losses

2011-12-03T16:53:00.000-05:00

Traders often fail to limit their losses in search of a big win. Of course, the only way you can make a fortune with trading is to actually stay in the game, and it’s hard to stay in the game when you’ve already lost all of your money. The problem is that people often feel like any loss is a failure, and so they don’t incorporate a strategy for “safe” losses. They may feel like “planning” for a loss is planning to fail when, in fact, it’s planning to keep themselves in the game.

Losses are a part of our business. The key to trading success is to limit your losses. Too many traders give a trade way too much “room,” and they take big hits, which can shrink an account down by 20%, 30%, and sometimes even 40%. You have to put a system into place which will ensure that you set small losses to avoid emptying your account.

There’s a huge difference between losing big on a regular basis and losing small in a controlled trading plan. You already know that you should keep your losses small; the key is to keep them smaller that your average wins. Even if your winning percentage is only 50%, you’ll still be profiting if you set yourself up correctly. For example, if you have a weekly strategy that gets you $300 for every win but only takes $200 for every loss, a tie of a win and a loss will still get you a $100 profit for that week.

The real key is to set a weekly goal and to be sure that you set a loss limit for each trade. So let’s say your goal is $300 each week, and you want to be sure that you lose no more than $200 per trade. If your first two trades of the week were losses, then you’re down $400. But all you need is three more wins through the rest of the week to make your profit. Once you meet your goal, stop trading, otherwise, you may end up with further losses, putting you behind schedule and gouging into your account funds, which will simply set you back further.

The basic rule: always know when to exit a trade. Set a loss limit and stick to it. But also set short-term goals, and stop when you’ve reached those goals. Don’t ever gamble. Remember that looking for small gains over the long term is a much more reliable and consistent strategy which will help you avoid losing too much too quickly.

Few important tips for penny stock day traders

2011-11-13T03:56:00.000-05:00

Day trading the stock market consists of the swift buying and selling of stocks on a day-to-day basis. This scheme is used to assure quick profits from the repeated changes in stock values, minute to minute, second to second. It is rare that a day trader will continue in a trade over a night into the next day. These trades are entered and exited in a matter of minutes.

The first question that most people ask when it comes to day trading is straightforward: ‘is it necessary to sit at a computer watching the markets ALL day long in order to be a successful day trader?’ The answer is no. It’s not necessary to sit at a netbook all day long.

There are a number of factors to consider, but generally the rule of day trading is to trade when everyone else is trading. In other words, trade in the morning. As with all financial trades, day trading is risky - in fact, it’s one of the riskiest forms of trading stocks out there. The stock prices jump or fall according to the behaviour of the market, which is utterly unpredictable. Day traders buy and sell shares rapidly in the hopes of gaining profits within the moments and seconds they own those particular stocks. Simple to do in theory, harder to do in reality.

If you are limited by a small amount of capital, you may not be able to buy large number of a stock, but buying only a small amount can add to the risk of a loss. And, obviously, it is impossible to predict with certainty which stocks will result in profits and which in losses. Even the best of traders must learn to accept both outcomes. The day trading industry deals in a large variety of stocks and shares.

These examples below are not your only two available options when it comes to day trading stocks. The best way to determine which type of stock is right for you is to invest some time for careful research, a familiarity of market patterns, a robust strategy, and finally, what is probably the most important - a disciplined trading plan.

Bullish Momentum trading - shares which are expected to continue to grow in price. These shares of companies which are on the rise and show no signs of stopping. Although penny stocks are generally cheap, they are a very risky investment for day traders. You’d be safer to go with large caps and/or mid-caps, which are much more secure and stable thanks to a premium.
Distressed trading - company stock that has not performed well in the past periods. Day traders buy these penny stocks in the hopes of achieving profits if and when the stock rises in value. As with small caps, distressed penny stocks can be a risky choice for penny stock day traders.

It’s also important to know that in day trading, it is the number of shares rather than the value of shares that should be the focus. If you day trade, you will face losses, but even for the more expensive stocks, the loss should be marginal, because prices do not usually change to an extreme degree over the course of just one day.

How to avoid issues with IRS and your Brokerage when day trading penny stocks

2011-11-10T20:47:00.000-05:00

A Day Trader is somebody who does four intra-day trades in five consecutive trading days. Let me concentrate on some terms here to help you understand this well:
Intra-day trade:
A trade that is opened and closed in the same trading day (round trip).
Five Consecutive Trading Sessions:
These are calendar or working days when the market is open, all in a row. For example, if the market was open on Monday through Friday that would be five consecutive days. Then we would have Tuesday through Monday for the next five consecutive days (unless Monday was a holiday in which case it would then be Tuesday through Tuesday. Next, we would have Wednesday through Tuesday, and so on. The key is five trading days in a row.
How to avoid it?
One of my friends taught me to use a table to record my intra-day trades. By placing an "X" on the day you do intra-day trades, (2 X's if you do two, 3 X's if you do 3 in that day) you can avoid accidentally getting to four by looking at your calendar. Make sure you mark the days the market is closed on your calendar.
Why it is important?
I considered it mattered a lot, but after my research, it appears there actually are some good benefits being classified as a "Day Trader" assuming the $25,000 is not an issue for you and you plan to keep this ammount on your trading account anyway .

Basically there are two issues at hand:
ISSUE NUMBER ONE: Tax Consequences with the IRS. Actually upon my research into the IRS Articles it does not appear as bad as I thought. A tax firm specializing in day trading activity, says:
o They enable the active trader to still take advantage of the beneficial long term capital gain rules.
o They enable the active trader to circumvent the restrictive "Wash Sale" rules normally applied to investors, thereby alleviating a huge record-keeping nightmare.
o They allow the active trader to deduct losses on open as well as closed positions.
o They allow a full deduction of all trading losses in the year they face, thereby circumventing the historical $3,000 net capital loss rule.
o They allow full actual expensing of trading operating costs without limitation, thereby circumventing the limitation on miscellaneous itemized deductions.

You would report your trader's activity as a business on Schedule C of your 1040, possibly allowing all the deductions for your classes and tools, versus a limitation on deduction for passive trading that would have had to be documented on your Schedule A with a 2% AGI limitation deduction. But here is the sweet deal: you can still elect to report your gain or loss on Schedule D as a capital gain unless you made the mark-to-market election, (which has you claim the income as ordinary income on Form 4797 instead of Schedule D - see IRS Publication 550 for more critical info on this). Just to be safe, you better talk to an accountant that specializes in stock market trading, particularly day trading. Being a certified accountant, I want to tell you that most accountants will not know how to treat your trading income properly, unless they studied it as a separate discipline. Trader needs to understand this.
The proper classification of your investment activities is important to determine how income and expenses are to be recorded.
Traders that purchase and sell securities frequently can report their purchases and sales result in capital gain and loss, and their deductible expenses are trade or business expenses.

ISSUE NUMBER TWO: Account Value - your brokerage firm will likely impose the NASD requirements of maintaining at least $25,000 in your trading account (mentioned above) - and you have 5 days to comply with this requirement. If you have this kind of money there is no issue! However, if you are starting out with limited assets to trade it could be a big issue! One important note - always ask for one time of forgiveness! Many people told me they did and the status was removed - so always ask if in trouble! There may be a way around it, but I am not sure. From my reading of the requirements, the punishment for not complying is that you are subject to cash only trades, (which are what we were doing anyway with options)!

There is a really incredible benefit though if you are labeled a Day Trader and keep the $25,000 minimum value in your trading account. You may be eligible for day-trading margin, which is from 2 to 4 times account buying power. This is my favorite! This buying power may only be used intra-day and may not be preserved past market close. Orders exceeding Day-Trading Buying Power will be rejected. Remember this!

Trading Results for 11/4/2011

2011-11-05T17:46:00.003-04:00

Trading Alert for 11/4/2011

2011-11-03T21:27:00.001-04:00

$BWEN - symbol we will be trading tomorrow morning based on our pennystocks100 strategy. Chart shows plenty of room for an up move even without major trend change.
Broadwind Energy Inc. ($BWEN), a U.S. maker of wind-turbine components, surged the most in more than two years after announcing an order from Siemens AG.
Broadwind gained 31 percent to 51 cents after the announcement in New York, the biggest increase since June 26, 2009. Siemens will buy 36 wind towers from Broadwind to expand a wind energy project in Iowa and signed an option to purchase an additional 25, according to a statement today from Naperville, Illinois-based Broadwind.

Trading Results for 11/3/2011

2011-11-03T20:26:00.000-04:00

Not a bad day. Small profit from $RTK still a profit... Exit was a bit challenging due to the weak volume, but overall it was quite good.

Date	Symbol	bought	sold	P/L%
3-Nov-11	RTK	1.9	1.92	1.05%
3-Nov-11	Average per trade			1.05%

Trading Alert for 11/3/2011

2011-11-02T22:20:00.001-04:00

One symbol to trade tomorrow - old friend of us - $RTK. If you think the chart is overbought, think again - it's a strong momentum play and the game is likely to continue in the near term. Forgot to mention, I hold $RTK (small position) already for my mid-to-long term speculative portfolio. Tomorrow will add significantly, just for a quick trade in my pennystocks100 strategy.

Shares of alternative-fuels company Rentech got a lift after the company revealed the terms of its nitrogen fertilizer business IPO. It hopes to raise around $250 million by selling 15 million units at a price ranging from $19 to $21 a stub, and will trade on the New York Stock Exchange under the symbol "RNF."

Rentech is focusing on developing cleaner-burning jet fuel made from plant-based biomass, but its gasifier project got cut out of the financing loop by the Energy Department this summer, sending its stock barreling lower.

When it goes public, Rentech will own 60% of Rentech Nitrogen, which had $176 million in sales for the 12 months ended in June, and will see it compete against such established players as CF Industries and Mosaic

Trading Results for 11/2/2011

2011-11-02T22:08:00.002-04:00

Not a bad day for us. $RDN and $JAG yielded 2.2% profit on average

Trading Alert for 11/2/2011

2011-11-01T18:35:00.002-04:00

Two symbols for tomorrow: $JAG and $RDN Both charts look good, especially $RDN, from short term speculation stand point.

Radian Group Inc. ($RDN), the second-largest U.S. mortgage insurer, climbed in New York trading as profit advanced and the company said sales are climbing. Third-quarter net income increased 64 percent to $183.6 million, or $1.37 per share, from $112.2 million, or 84 cents, the Philadelphia-based company said today in a statement.
Policy sales climbed 2 percent to $178.3 million as smaller rival PMI Group Inc. was prohibited from selling new coverage. Mortgage insurance claims fell 33 percent from a year earlier to $329.9 million.

Trading Results for 11/1/2011

2011-11-01T17:29:00.002-04:00

Symbols to trade for 11/1/2011

2011-10-31T21:54:00.000-04:00

$SIFY - will be trading tomorrow. First symbol after a long break. Seems like November could be a month of resumed trading... we'll see.
Anyway, for now, just $SIFY that skyrocketed on very positive second quarter of fiscal year 2011-12 financial results. Doesn't mean much, but chart is definetely a good short term bullish trade.

Trading Results for 10/14/2011

2011-10-14T18:17:00.002-04:00

Trading Alert for 10/14/2011

2011-10-13T20:49:00.000-04:00

Show must go on - four symbols to trade tomorrow: $BZH, $CLWR, $TQNT, $IVAN:

$BZH - Beazer Homes USA Inc. said on Thursday that new home orders jumped 33 percent in its fiscal fourth-quarter compared with the same period a year earlier, while home closings rose 23 percent.

Backtested Symbol: $BZH

Strategy: Pennystocks100 (5 min chart)

Period: Oct 13, 2010 - Oct 13, 2011

# Win: 1

# Loss: 1

Winners: 50%

Profit-Loss%: +4.11%

$CLWR - Shares jumped as much as 21.5% overnight after the 4G wireless network operator shared "selected preliminary" results for the third quarter. Revenue projections of about $332 million were just a bit above the analyst consensus at $324 million, and operating losses will be smaller than last quarter's.

Backtested Symbol: $CLWR

Strategy: Pennystocks100 (5 min chart)

Period: Oct 13, 2010 - Oct 13, 2011

# Win: 1

# Loss: 1

Winners: 50%

Profit-Loss%: +3.41%

$TQNT - TriQuint Semiconductor Inc. (TQNT) shares surged the most in almost a decade after a report indicated that its chips are included in the Apple Inc. (AAPL) iPhone 4S.
The stock jumped 24 percent, to $7.35, after the Ifixit website published analysis that showed Apple’s newest version of the iPhone sports a part made by Hillsboro, Oregon-based TriQuint. That was the biggest intraday gain since Oct. 23, 2002.

Backtested Symbol: $TQNT

Strategy: Pennystocks100 (5 min chart)

Period: Oct 13, 2010 - Oct 13, 2011

# Win: 0

# Loss: 0

Winners: 0%

Profit-Loss%: +0.00%

$IVAN - President of Ivanhoe's wholly-owned subsidiary Sunwing Energy Ltd., announced today that Ivanhoe's drilling team has begun moving the drilling rig to the site of the second exploration well in east-centralMongolia.

Backtested Symbol: $IVAN

Strategy: Pennystocks100 (5 min chart)

Period: Oct 13, 2010 - Oct 13, 2011

# Win: 1

# Loss: 1

Winners: 50%

Profit-Loss%: +2.99%

Trading Results for 10/13/2011

2011-10-13T18:27:00.000-04:00

Overall it was good, especially I liked $GTIV action this morning. We booked relatively small profit on average basis, but I think it was not bad for bulls at all. At least we are holding this level decently.
+0.53% profit on average per trade. And $CX was a disappointment of today. Fake positive 3-min bar too early spoiled the whole thing. We should have entered around 9:57 when the second positive 3-min bar chart appeared and started a nice 10% run up, but we were not lucky enough to capture this nice bullish action.

Trading Alert for 10/13/2011

2011-10-12T20:31:00.000-04:00

Wow, what a day. Four symbols to trade tomorrow: OPK, AONE, GTIV, CX
Has a real new bull market emerged? I don't know. Time will test it. As of now, we have something to trade, at least for tomorrow.

$AONE popped up nicely on news that General Motors Co. will start selling an all-electric Chevrolet small car for the U.S. market in 2013. Is it related to $AONE? Who knows, but technically good looking chart, + overall market positive mood, + GM news = all should work our well tomorrow and continue this bullish activity. It make break out the channel easily... We'll see. This one looks like the best set up from all other symbols I have in my screener for tomorrow.
Backtested Symbol: $AONE
Strategy: Pennystocks100 (5 min chart)
Period: Oct 12, 2010 - Oct 12, 2011
# Win: 0
# Loss: 1
Winners: 0%
Profit-Loss%: -1.64%

$OPK - Over the last six months, insiders were net buyers of 6,854,500 shares, which represents about 5.04% of the company's 136.01M share float.
Backtested Symbol: $OPK
Strategy: Pennystocks100 (5 min chart)
Period: Oct 12, 2010 - Oct 12, 2011
# Win: 0
# Loss: 1
Winners: 0%
Profit-Loss%: -1.19%

$GTIV - just a huge oversold play due for a decent bounce from these 'below the bottom' levels. Volume confirmation is what I am buying here.
Backtested Symbol: $GTIV
Strategy: Pennystocks100 (5 min chart)
Period: Oct 12, 2010 - Oct 12, 2011
# Win: 0
# Loss: 0
Winners: 0%
Profit-Loss%: +0%

$CX - the stock looks very cheap, and if the company doesn't collapse under the weight of its debt, the stock could see serious gains.

Backtested Symbol: $CX
Strategy: Pennystocks100 (5 min chart)
Period: Oct 12, 2010 - Oct 12, 2011
# Win: 0
# Loss: 0
Winners: 0%
Profit-Loss%: +0%

Trading Alerts going forward...

2011-10-02T20:22:00.000-04:00

I am receiving emails from some regular readers of my pennystocks100 blog, why I don't publish alerts, or sometimes publish late. In fact, if there is something to trade, I am always trying to be on time and inform my readers by 8pm for the next following trading session. However, I need to admit that if there is nothing to trade, in other words no symbol comes out my screener, I am not very disciplined to put a post "No symbols to trade". Obviously with a bear market that was in full swing in September and likely to continue in October, there is no much to do for us, bulls. Unless you want to lose money... :) So, for now, absence of any alert, means that 'there is no symbol to trade' by default and IF there is something interesting I plan to trade, I promise, I will let my readers know...

And what is most important, I want to emphasize again: NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

Pennystocks100 Trading Stats for September 2011

2011-10-02T19:43:00.000-04:00

Pennystocks100 Trading Strategy Statistics for September 2011

% of Winning Trades: 37.50%
Screened but NOT traded: 0
Largest Winner: 5.28%
Largest Loser: -3.90%
Average Loss Trade: -2.00%
Average Win Trade: 3.13%
Average Trade: -0.07%
Trading Strategy Expectancy: -0.04

Previous month (August 2011) Statistics could be found here

No symbols to trade for 9/23/2011

2011-09-22T20:19:00.001-04:00

No symbols to trade for 9/22/2011

2011-09-21T20:27:00.001-04:00

No symbols to trade for 9/21/2011

2011-09-20T21:32:00.000-04:00

No symbols to trade for 9/20/2011

2011-09-19T23:31:00.000-04:00

No symbols to trade for 9/19/2011

2011-09-18T17:49:00.001-04:00

Trading Results for 9/16/2011

2011-09-18T11:44:00.000-04:00

No luck with $NCT. Slow death without much positive moves. 3% trailing stop loss kicked us from the trade.

Trading Alert for 9/16/2011

2011-09-15T20:25:00.000-04:00

$NCT - symbol to trade tomorrow, Sep 16, Friday. Markets are gaining momentum and although we didn't have any symbols in our screener, it's still may indicate that bulls attempt this time to break out the resistance on S&P chart will be successful. As for $NCT, it advanced today after the real estate investment company raised its quarterly dividend and suggested further increases could be in store.

Backtested Symbol: $NCT

Strategy: Pennystocks100 (5 min chart)

Period: Sep 15, 2010 - Sep 15, 2011

# Win: 0

# Loss: 0

Winners: 0%

Profit-Loss%: +0.00%

No symbols to trade for 9/15/2011

2011-09-14T21:26:00.000-04:00

No symbols to trade for 9/14/2011

2011-09-13T23:59:00.000-04:00

Trading Results for 9/13/2011

2011-09-13T16:31:00.000-04:00

Nothing really to say here. Small loss, just due to ask-bid spread. The only good thing - I was able to enter and exit at a full position, though overall volume and activity was weak throughout the day. I exited earlier than 3pm, and time proved it was a right move. My losses would be a bit higher if I exited on time at 3pm. Anyway, just another flat day in this bear market.

Symbols to trade for 9/13/2011

2011-09-12T18:25:00.000-04:00

Just one symbol we'll be trading tomorrow: $VTG
Double bottom nicely confirmed and should have a bullish continuation tomorrow morning. Plus, overall market run up from today's afternoon is very likely to continue tomorrow. This will provide additional support to our $VTG bullish case.

Backtested Symbol: $VTG

Strategy: Pennystocks100 (5 min chart)

Period: Sep 12, 2010 - Sep 12, 2011

# Win: 1

# Loss: 1

Winners: 50%

Profit-Loss%: +0.12%

No symbols to trade for 9/12/2011

2011-09-09T23:13:00.001-04:00

No symbols to trade for 9/9/2011

2011-09-08T21:06:00.001-04:00

Trading Results for 9/8/2011

2011-09-08T16:09:00.000-04:00

Excellent day for us! Both $FCEL and $TLB ended up with a good profit! Entry and exit both were executed well. Trading volume supported smooth execution.

Trading Alert for 9/8/2011

2011-09-07T19:58:00.000-04:00

$TLB and $FCEL - two symbols we'll be trading tomorrow.
$FCEL - Earnings results were good -- revenue rose 65% to $31.2 million while backlog stands at a record $231 million -- that Wall Street can't help but anticipate even stronger demand to come. Shares of FuelCell had been punished about 50% since the start of the year, but by generating its first quarterly gross margin, investors might finally be seeing the proverbial light at the end of the tunnel.

Backtested Symbol: $TLB

Strategy: Pennystocks100 (5 min chart)

Period: Sep 7, 2010 - Sep 7, 2011

# Win: 0

# Loss: 1

Winners: 0%

Profit-Loss%: -1.56%

Backtested Symbol: $FCEL
Strategy: Pennystocks100 (5 min chart)
Period: Sep 7, 2010 - Sep 7, 2011
# Win: 3
# Loss: 3
Winners: 50%
Profit-Loss%: +6.91%

No symbols to trade for 9/7/2011

2011-09-06T23:40:00.000-04:00

Trading Results for 9/6/2011

2011-09-06T21:38:00.000-04:00

Trading volume was so low and weak. I was barely able to enter the trade and exit it. Only 1/3 of the normal position, but nothing to regret about. It just saved me some money.

Trading Alert for 9/6/2011

2011-09-05T08:57:00.000-04:00

Markets are closed today, so the symbol we filtered on Friday is our play for tomorrow, Tuesday and this is $PEIX, old and reliable friend of us. It has a long and reliable track record history in our Pennystocks100 startegy and is one of the most profitable symbols we've been trading. Set up for Tuesday looks good. We traded $PEIX on Aug 26, few days ago and again harvested healthy 4%+ profit, but the bullish set up has not yet fully revealed itself. Bullish speculators know something about $PEIX and I am sure they will be pushing it higher again next week.

Backtested Symbol: $PEIX
Backtest Strategy: Pennystocks100 (5 min chart)
Period: Sep 2, 2010 - Sep 2, 2011
# Win: 11
# Loss: 5
Winners: 69%
Profit-Loss%: +49.18%

Pennystocks100 Trading Stats for August 2011

2011-09-04T18:09:00.000-04:00

Pennystocks100 Trading Strategy Statistics for August 2011

% of Winning Trades: 36.36%
Screened but NOT traded: 0
Largest Winner: 4.17%
Largest Loser: -4.13%
Average Loss Trade: -2.43%
Average Win Trade: 1.99%
Average Trade: -0.60%
Trading Strategy Expectancy: -0.25

Previous month (July 2011) Statistics could be found here

Trading Results for 9/2/2011

2011-09-02T16:27:00.001-04:00

Pretty good day for us. 5%+ gain from $GLUU trade was not bad at all. And it developed in my favorite way - early morning pull back, excellent entry opportunity and then nice run up... Trailing 3% stop loss also worked our well enough. Anyway, good close for the pre-holiday trading session. Great week-end to everybody!

Trading Alert for 9/2/2011

2011-09-01T20:37:00.001-04:00

$GLUU - symbol to trade tomorrow. Nice set up, nice looking chart... There is a lot of positive news and buzz around $GLUU and the latest article I just found on seekingalpha.com (Zynga's Next Acquisition Target: Glu Mobile) sounds quite reasonable. I believe many traders/investors would agree with the author. And many of them will join the party. So do I... at least for tomorrow, 9/2/2011

Backtested Symbol: $GLUU
Strategy: Pennystocks100 (3 min chart)
Period: Sep 1, 2010 - Sep 1, 2011
# Win: 3
# Loss: 1
Winners: 75%
Profit-Loss%: 3.81%

Trading Results for 9/1/2011

2011-09-01T19:46:00.002-04:00

Attack of bulls for the last 5-7 days was the first real one since May, but it was all lost opportunity. Don't know how next week develops. It could be that this week was a warm up session before a true bull season starts, or it might be just a trap for bulls...We'll see... Both our trades today ended up in negative territory. September start was not very optimistic.

Trading Alert for 9/1/2011

2011-08-31T19:32:00.001-04:00

We entering September with positive hopes and expectations. Last year bullish rally started on September 16th. History never repeats exactly, but some similarities in seasonal cycles are pretty common. Especially when it comes to trading. Two symbols again for tomorrow: $OPWV and $YRCW.

Volume confirmation, specifically for $OPWV was very convincing. Openwave Systems today filed complaints with the International Trade Commission against Apple and Research In Motion, alleging infringement of five patents it claims are “foundational to the mobile Internet”. This is a case when legal news are good news.

Backtested Symbol: $OPWV

Strategy: Pennystocks100 (5 min chart)

Period: Aug 31, 2010 - Aug 31, 2011

# Win: 1

# Loss: 0

Winners: 100%

Profit-Loss%: +1.45%

As for $YRCW, it has been one of our favorite speculative plays. Stock is so down and oversold, that the bounce is just expected from pure technical standpoint. Strong green volume today tells me that $YRCW bulls are ready for another attack on bears. I am joining the party tomorrow morning.

Backtested Symbol: $YRCW
Strategy: Pennystocks100 (5 min chart)
Period: Aug 31, 2010 - Aug 31, 2011
# Win: 4
# Loss: 2
Winners: 67%
Profit-Loss%: +12.08%

Trading Results for 8/31/2011

2011-08-31T19:10:00.001-04:00

I hate trading when volume is so dry. This $BZH trade today was just outrageous. It kicked me out on my 3% trailing stop loss and then recovered back. Again, automatic trailing stop loss order is good, when volume is decent. Otherwise, its just a licence for the brokerage to steal your money.

Results of my trades today are attached.

Also, just have a look at 1-min chart of $BZH. I hate those deep pocket brokerage manipulators who love to steal traders' money!

Trading Alert for 8/31/2011

2011-08-30T20:38:00.000-04:00

Two symbols we'll be trading tomorrow: $COCO and $BZH.
Both are down big time for the last couple of months and we are expecting a healthy bounce up. Both are highly speculative plays, but upside potential in the short term significantly exceeds downside risk. Stock specific reasons, (positive news buzz) multiplied by momentum and the overall market bounce potential may yield high returns. Volume just confirms the action. We are expecting positive bullish activity to continue tomorrow morning.

Backtested Symbol: $BZH

Strategy: Pennystocks100 (5 min chart)

Period: Aug 30, 2010 - Aug 30, 2011

# Win: 1

# Loss: 0

Winners: 100%

Profit-Loss%: +8.85%

Backtested Symbol: $COCO

Strategy: Pennystocks100 (5 min chart)

Period: Aug 30, 2010 - Aug 30, 2011

# Win: 1

# Loss: 1

Winners: 50%

Profit-Loss%: +0.44%

Trading Results for 8/30/2011

2011-08-30T17:44:00.000-04:00

Trading Alert for 8/30/2011

2011-08-29T22:06:00.000-04:00

Two symbols for tomorrow: $COOL and $MILL
$COOL was one my closely monitored pennystocks. $COOL has lost 50% of its value during the last 2 months. The company is a leading developer, provider, distributor of video games. The stock experienced unbelievable gains throughout 2010 when it released several best selling video games which include Zumba.The company has no debt and is on pace to significantly outperform 2010. From technical standpoint, chart looks perfect for a nice breakout through the resistance at around $2.60. It might be very well possible that the breakout actually happened today.

Backtested Symbol: $COOL

Strategy: Pennystocks100 (5 min chart)

Period: Aug 29, 2010 - Aug 29, 2011

# Win: 2

# Loss: 0

Winners: 100%

Profit-Loss%: +5.02%

Backtested Symbol: $MILL

Strategy: Pennystocks100 (5 min chart)

Period: Aug 29, 2010 - Aug 29, 2011

# Win: 0

# Loss: 0

Winners: 0%

Profit-Loss%: +0.00%

Trading Results for 8/29/2011

2011-08-29T21:54:00.002-04:00

Something was good, something not so good. Market overall showed a nice bullish recovery. How sustainable is this, near future will show... Minor +0.24% profit is Ok for now. I hope bulls can sustain the gains and that's what most critical today.

Trading Alert for 8/29/2011

2011-08-28T19:40:00.000-04:00

Three symbols for tomorrow: $TGB, $HERO, $PEIX. Surprisingly large number of stocks to trade we got into our screener. But, that's the reality. Penny stocks were down for a long time, since May 16th, as my indicators show, so, it's due for a decent bullish rally, at least for commodity and really strong plays. So, we'll see... For now, as I said, three symbols and each one has a reason to go higher.

$TGB - The Canadian Environmental Assessment Agency has formally accepted Taseko Mines Limited's $TGB's project description for its proposed $1 billion New Prosperity gold-copper mine in British Columbia's central interior.

Backtested Symbol: $TGB
Strategy: Pennystocks100 (5 min chart)
Period: Aug 26, 2010 - Aug 26, 2011
# Win: 2
# Loss: 2
Winners: 50%
Profit-Loss%: +2.10%

Backtested Symbol: $HERO
Strategy: Pennystocks100 (5 min chart)
Period: Aug 26, 2010 - Aug 26, 2011
# Win: 4
# Loss: 2
Winners: 67%
Profit-Loss%: +8.05%

Backtested Symbol: $PEIX
Backtest Strategy: Pennystocks100 (5 min chart)
Period: Aug 26, 2010 - Aug 26, 2011
# Win: 10
# Loss: 5
Winners: 67%
Profit-Loss%: +45.44%

Trading Results for 8/26/2011

2011-08-26T16:42:00.002-04:00

I traded $YRCW manually today. Float as usual was too low and I was trying to make a sense out of this trade. I did't use trailing stops of course, because of small volume and when after 10:30am everything was kinda looking soft and unstable, I gradually exited my possition with 1 cent profit per share. Again, not bad given the market situation. Feels like bulls are trying to come back here... hopefully September will offer more opportunities for us. Will see... As for today, 1%+ profit from $YRCW.

Trading Alert for 8/26/2011

2011-08-25T20:59:00.000-04:00

One symbol we'll be trading tomorrow: $YRCW. It confidently got into our screener tonight. Strong price move accompanied by volume confirmation set a promising set up for bulls tomorrow morning.

Backtested Symbol: $YRCW
Strategy: Pennystocks100 (5 min chart)
Period: Aug 25, 2010 - Aug 25, 2011
# Win: 3
# Loss: 2
Winners: 60%
Profit-Loss%: +10.12%

No symbols to trade for 8/25/2011

2011-08-24T17:00:00.000-04:00

Trading Results for 8/24/2011

2011-08-24T16:42:00.001-04:00

Profitable trade from $WTSLA today. +1.65%. Good deal, but float was so low and weak, I was able to enter only with 1/2 of my standard position and did it with multiple entries, which I hate to do. Anyway, little profit is still a profit in such difficult times for bulls.

Trading Alert for 8/24/2011

2011-08-23T17:30:00.001-04:00

One symbol to trade tomorrow - $WTSLA
We haven't had anything in our screener for a long time (2 weeks or so). This is something that worth to celebrate for bulls :-) Is it? I don't know. We'll see tomorrow. Looking at $WTSLA chart I can say that set up looks good and a bullish continuation is very likely, just at least to hit the upper edge of the channel. Overall $WTSLA doing quite well, given the current market condition. It is still in a strong ascending channel and all red corrections were on a minimal volume, while green bars accompanied by strong trading volume support.

Backtested Symbol: WTSLA

Strategy: Pennystocks100 (5 min chart)

Period: Aug 22, 2010 - Aug 22, 2011

# Win: 1

# Loss: 0

Winners: 100%

Profit-Loss%: 0.98%

No symbols to trade for 8/23/2011

2011-08-22T17:20:00.000-04:00

No symbols to trade for 8/22/2011

2011-08-19T21:10:00.000-04:00

No symbols to trade for 8/19/2011

2011-08-18T17:19:00.001-04:00

No symbols to trade for 8/18/2011

2011-08-17T23:09:00.000-04:00

No symbols to trade for 8/17/2011

2011-08-16T17:42:00.002-04:00

No symbols to trade for 8/16/2011

2011-08-15T16:03:00.000-04:00

Liquidity has left the market. There are bunch of stocks "in green" but there is no a single one with a volume serious enough to support the action. $NOK, may be the only exception, but I am not going to trade it tomorrow. Still feels too speculative and not convincing enough. So, no symbols for tomorrow. I am just watching for now...

No symbols to trade for 8/15/2011

2011-08-12T17:11:00.000-04:00

Trading Results for 8/12/2011

2011-08-12T16:18:00.000-04:00

No luck with $AONE today. Promissing setup, but the final result is negative -1.77%

Trading Alert for 8/12/2011

2011-08-11T21:30:00.000-04:00

One symbol to trade tomorrow: $AONE.
$AONE popped 49% in intraday trading today after General Motors said it has awarded A123 Systems a contract to build battery packs for "future" electric vehicles (EVs). An A123 spokesman stated the company expects to build "thousands or up to tens of thousands of battery packs" a year for GM. It was already known that A123 had a production contract with a major North American automaker, though today's announcement suggests that contract just got bigger and was extended.

Backtested Symbol: $AONE

Strategy: Pennystocks100 (5 min chart)
Period: Aug 11, 2010 - Aug 11, 2011
# Win: 0
# Loss: 0
Winners: 0%
Profit-Loss%: +0.00%

No symbols to trade for 8/11/2011

2011-08-10T23:10:00.001-04:00

Trading Results for 8/10/2011

2011-08-10T16:37:00.002-04:00

$EGLE volume was so weak, I was not able even to enter with 1/4 of my regular position. And exit, though manual, still dragged the price down so it was just a wash sale for me. 0% profit... few dollars to cover the cost of trade itself...

Trading Alert for 8/10/2011

2011-08-09T17:29:00.000-04:00

Huge bounce today yielded one symbol for our pennystocks100 trading tomorrow: $EGLE
chart looks very attractive at this point. Though I don't buy what some people call "cheap" or "expensive" - it's all so relative. But at this point $EGLE chart looks ready for a nice bullish continuation tomorrow morning. A lot of stocks we are monitoring showed great price increase today, but $EGLE was the only one where price increase was confirmed by the volume spike. This is the first symbol we will be trading in August, so lets see how it goes...

Backtested Symbol: $EGLE

Strategy: Pennystocks100 (5 min chart)
Period: Aug 9, 2010 - Aug 9, 2011
# Win: 0
# Loss: 0
Winners: 0%
Profit-Loss%: +0.00%

No symbols to trade for 8/9/2011

2011-08-08T22:46:00.001-04:00

I think this message of "no trade" for tomorrow is just redundant after today's bull massacre :-) but just in case... if some didn't get a message today. We just entered a bear market, guys. As a permabull I had zero positions whole last week and obviously zero today and going into tomorrow so I am almost in a "vacation" mode. Will keep posting updates anyway and will follow my pennystocks100 screener alerts, but honestly don't expect anything anytime soon. I guess we will be lucky to have 5-10 trades in August.

Good luck to all bulls! :-) Time to take a vacation, guys...

No symbols to trade for 8/8/2011

2011-08-05T21:51:00.001-04:00

No symbols to trade for 8/5/2011

2011-08-04T23:50:00.000-04:00

No symbols to trade for 8/4/2011

2011-08-03T18:40:00.000-04:00

No symbols to trade for 8/3/2011

2011-08-02T23:41:00.000-04:00

Pennystocks100 Trading Stats for July 2011

2011-07-31T19:00:00.000-04:00

Pennystocks100 Trading Strategy Statistics for July 2011

% of Winning Trades: 45.00%
Screened but NOT traded: 0
Largest Winner: 11.19%
Largest Loser: -4.40%
Average Loss Trade: -2.43%
Average Win Trade: 3.27%
Average Trade: 0.50%
Trading Strategy Expectancy: 0.20

Previous month (June 2011) Statistics could be found here

No symbols to trade for 8/1/2011

2011-07-30T20:46:00.001-04:00

Trading Results for 7/29/2011

2011-07-29T15:55:00.002-04:00

Can't believe but it was a profitable day for us. $RBY pulled back at open and we had a good entry at $4.11. Intraday volatility was low, but we were close to lose our trade when after spike to $4.22 it dropped down to $4.10 - just 1 cent away from 3% stop loss being triggered. Anyway, sold around 3pm with a modest 1.7% profit.

I didn't look into overall July results yet, but seems to me they will be around breakeven point.

Anyway, I liked this end of July trade of $RBY. It brings some positive optimistic feelings about future :-) Great weekend to everyone!

Trading Alert for 7/29/2011

2011-07-28T16:23:00.002-04:00

In spite of difficult market season for bulls, we have one pick for tomorrow: $RBY. Rubicon Minerals Corporation ($RBY) announced that the strategic investment of C$70,000,000 in Rubicon by Agnico-Eagle Mines Limited by way of a non-brokered private placement of common shares has closed. Chart looks quite good. Seems like we are at the trend change or significant bounce point. Fundamentally, it is a play with a good financial position (at least for now, based on the news), plus it is a commodity play, plus it is a gold play. So, everything lined up pretty well. We'll see tomorrow...

Backtested Symbol: $RBY

Strategy: Pennystocks100 (5 min chart)
Period: July 28, 2010 - July 28, 2011
# Win: 0
# Loss: 0
Winners: 0%
Profit-Loss%: +0.00%

No symbols to trade for 7/28/2011

2011-07-27T23:08:00.000-04:00

Trading Results for 7/27/2011

2011-07-27T21:41:00.000-04:00

Market sell off today affected everything including our $LLNW pick. Bought after morning pullback around 9.50am, but it didn't help much. Honestly, I was almost sure that it will be a NO TRADE day for us. That was the only 3-min bar that closed green before 10am. Anyway, I closed $LLNW position around 3pm and it was actually a good decision, as the sell off continued at market close as well.