[spin]A Personal Note From The Developer Of Seven Summits Trader Mark Soberman-

Watch this weird 30 minutes Stock Trading Nitty Gritty Video just now. Turn $200 into $100,000 in just 1 month with this FREE Penny Stock Trading Report that shows how to find killer penny stocks. Mark Soberman, the Seven Summits Trader: I wanted to take a couple of minutes and send you a personal note about our release of the Seven Summits Trader (SST) tomorrow. My goal is that after you read this you’ll see why I’m so enthusiastic about *and* why it’s so important that you attend Wednesday’s Debut Webinar.

I would like to personally encourage you to sign-up and attend one of the two release webinars. I can tell you having founding NetPicks over 15 years ago (in 1996) that we are always very deliberate when we release a new product. This is our first new course this year. While other companies seem to release a new product every month, I have always been very conservative and made sure that our newest products are actually tested to make sure they really are superior.

The Seven Summits Trader is the pinnacle and culmination of what I’ve learned in the past 15 years and in tomorrow’s webinar, you will have a very unique opportunity to see it before anyone else worldwide:

If you’ve watched the news recently, you’ll know that there are many calls for a fall crash in September or October. You have to wonder if this just ends up being a self-fulfilling prophecy or if it will rally instead. If it occurs, everyone will be again sitting on huge losses or miss the advance because fear is so high (along with record stock market outflows).

Buy and hold is dead – you know that. The only way we can trade consistently is to take matters into our own hands and control our destinies.

While everyone else is pulling their hair out trying to figure this out, using the SST we actually have the opportunity to outperform precisely because we prey upon volatility. And it’s because of this that we have no care at all whether a market goes up or down.

The Seven Summits Trader takes it to a new level for us. Trailing has never been something we’ve focused on though it can offer some of the best “home run” moves
available. With trailing built right into the strategy, and completely mechanical at that we have a brand new opportunity that we have not had before.

Not to mention the ability to grow with the strategy. As your account grows, you’ll be able to use the built-in “scale in” rules and add to your position during the strongest moves. A great way to compound your gains when the markets are on the move. The SST literally goes with you whether you’re a new trader, intermediate or advanced trader.

Thanks so much for reading this. I hope to see you in one of tomorrow’s webinars. I promise that in under an hour we’ll give you everything you need to make the right decision for yourself. It’s going to be one heck of a release (I simply cannot wait to get it into everyone’s hands!). I look forward to you joining me. I’ll catch you on Wednesday! I almost forgot to tell you what really makes me proud of the Seven Summits… it’s the true team effort behind its creation. For the first time, one of my NetPicks Trading Coaches was the driving force behind the SST. In addition, our professional traders also helped develop the software, ruleset and training.

Remember, all of our Trading Coaches are active individual traders and started out just like you. So, they know *exactly* what it takes to make a successful strategy… and it’s because of this that you’re going to benefit tremendously. So please, carve out some time and join me tomorrow in the SST Debut:

The Seven Summits Trader Debut Is Happening Today

Master these highly profitable Candlestick Patterns with this FREE 82 page PDF Candlestick Guide. Download these Swing Trading Informants FREE. Hey, in case you haven’t seen one of the bazillion emails, the Seven Summits Trader Debut is happening today ;) But in all seriousness, I’ve seen a sneak preview of the SST and I can definitely see how it would generate some buzz. To celebrate the Debut, Mark (the developer) has 2 live webinars planned today: the first at 12pm Noon and the second at 6pm Eastern (New York Time) – so check your schedule and see what time works best for you.

I’ll be at the 6pm webinar - honestly, I’m kind of anxious to see what kind of ‘extras’ he’s giving away for the big debut. (Mark is known for really bringing the giveaways on release day). The bonuses go like hotcakes but man, I love all those extras! If you’re anything like me, make sure you pick a webinar and get your logins ASAP:

Mark will be teaching a lesson on the new ‘Scale & Trail’ system, finally shedding some light on what the system comes with (prepare to be shocked) and host a live Q&A call with live audience members. So if I were you, I’d bring your tough, skeptical questions because you’ll probably learn a thing or two. But whatever you do, try to get your hands on those giveaways! Many of them are only given out to live webinar attendees so get your seat right now and maybe I’ll see you later today?

Did you see the most recent SST results update on trading Google?

+31.85 on a 130 minute chart!

You saw the big debut of the Seven Summits Trader on Wednesday, right? I told you it was going to be good! The SST system did not disappoint and as I’ve heard from many of you, you’re already onboard with BONUSES and Giveaways in-hand (you did me proud!). Here’s a quick recap of the bonuses…

* Extra Day Per Week in Live Training Room ($197.00 Value)
* ‘Top Secret’ SST Trade Plans ($397.00 Value)
* Instant Rebate applied at checkout ($300.00 Value)
* Range Bar & Renko Bar Plugin for MT4 ($197.00 Value)
* Free Shipping on SST Resource Package ($50.00 Value)
* Invitation to 2010 NetPicks Owners Meeting ($397.00 Value)

I can’t promise but I *believe* there still might be a few extra bonuses available. If you haven’t already, click the Seven Summits Trader link RIGHT now to claim the remaining goodies…There are only limited quantities of the SST system (and even fewer bonuses) so if you’re not seeing the performance out of your current system, it might be time for an upgrade (and anyway you look at it, the SST is a huge leap forward). But don’t say I didn’t warn you - get to the registration page now before they run clean out. Remember, for this 1st debut, Mark is offering a Double Price Guarantee! Basically, it means if the price of the Seven Summits Trader decreases anytime in the next 12 months, you’re entitled to receive a refund of the difference x2. Pretty sweet, huh? Now you’re probably *wishing* that they’ll charge less for the product in the future ;)

How To Swing Trade Penny Stocks

There are 4 basic strategies you can use to swing trade swing trade stock picks. They all work different and only a few of them work in every market. Swing trading is the process of buying a stock with the intention to profit within 1-4 days and sometimes 1-4 weeks.

1. Momentum (Power Hour Swing Trading)

This is great but there are several factors that must be present in the broader markets to swing trade momentum. First and foremost we need to see volume and volume has really died off this month. Secondly you want the broader markets to be trending higher which we don’t have now. Finally, you have to have optomistic investor sentiment. This is the only way you will get any follow through on momentum since the stocks you swing trade on momentum are typically over bought. This is a hard strategy when we are in uncertain times and the economy seems to be getting worse. You should always try to avoid going long and momentum trading during a market correction.

2. Trend Line

This is simple, you buy on the trend line. So you buy on the dip. The only probelm now is the markets could be reversing and you don’t want to get in on that trend line break because that is when things get really really ugly. The problem with this strategy is that most penny stocks don’t trend and most stocks don’t trend when the market is not trending. Most penny stocks don’t trend so this is a hard strategy to use. Most penny stocks usually go up because of fraud and scams so you want to try to avoid using this method unless you are trading large cap stocks.

3. Price Oscillations

This is simple and involves trading reversals and trading stocks that are in a range. You would buy these stocks when they are in a channel and try to sell at the top end of the range and buy and the lower end of the range with a stop set 2 cents outside of the range. You could also trade reversals using your stochastic RSI and your ultimate oscillator to find over sold stocks that cross the 20 line and go long. You would only want to play these if the market is reversing with the stock.

4. Breakout - What We Are Currently Doing Now.

This involves trading stocks that are channeling and break the high. You would enter the stock 1 cent above the high of the channel and you could ride this for several days as long as the market is not uncertain. You can go long and short on these. One of the best technical indicators to use with this type of trade is the bollinger bands. You want to see a band that has gotten very tight. You would look for it to break that range and try to exit on the first red day. This is a very accurate strategy.

For a list of penny stocks with entry prices you can visit picksthatmakecents.com. They have picks with entries listed everyday.

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Defending Your Profits When Trading Emini Futures

As emini futures traders, we’re all familiar with the feeling of excitement when the trade turns out as expected. The satisfaction of realizing we used the required self-discipline as required by our emini index trading system and followed by way of sticking to the foundations as outlined by that system. We watch in anticipation because the set-up takes shape and reveals the entry point we expected. Trade entry was executed without a snag and now we are watching as all our arduous work has paid off. The following step nonetheless, and probably the most tough for brand spanking new emini traders is locking in profits. Gains is what trading eminis is all about.

This stage of the trading course is where many deviate from their rules centered emini futures platform and let guesswork take over the trade. On Many occasions gains are eliminated and a loss is encountered because the emini futures trader foregetting to follow his system and comply with his stop loss. Maximizing profits is the goal of the trailing stop and the one way to ensure we lock in gains previously made is by using and imposing the emini trailing stop.

The trailing stop is dynamic in that as the trader you will continuously modify the stop loss as your trade continues to move up with the emini market if in a long position. The alternative can be true if the emini futures trader were holding a short position and the route is down. By frequently moving the trailing stop as our trade moves, we lock in profits already made, effectively a guarantee that a loss won’t be a consequence of the trade.

The trailing stop is a one-sided calculation in that it’s calculated to maneuver in just one direction, trailing our position as the trade develops in the direction we predicted from the start. The trailing stop is only just adjusted as our order makes new highs if we are long the emini market or adjusted downward if we’re going short the market. The trailing stop is rarely adjusted reverse of the preliminary move. The trailing stop is intended to protect gains already made only.

In manyinstances, new traders begin a trade with the futures market going within the course they anticipate and are rapidly within the money. However as is commonly the case, the market reverses and turns against the emini trader. Either out of emotion or the absolute need to be right, the new emini index futures trader both fails to obey his trailing stop or by no means considers using one in the first place. Profits made before quickly vanish and switch into a loss which could have been avoided had the index futures trader obeyed the principles of his emini trading system and employed a trailing stop order.

After all, a preliminary stop loss order ought to be applied when the trade is executed initially. The initial stop loss is there to protect you from a large loss should the position go south below your entry point. The trailing stop is there to protect gains because the play unfolds and continues to move within the path you expected when the order was executed. Emini trading can be fast paced, risky and is highly liquid and it’s the equivalent of trading suicide to actively use index futures trading strategies without using both initial stop loss orders and trailing stop orders in your emini trading plan.

Trailing stops can be used and are used successfully in both emini index futures day trading and index futures scalping no matter which of those emini futures trading methods are selected to be a part of the financial markets.

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Breakout Penny Stocks To Watch For - UTSI, PLM

I am going to give you 4 Stocks to watch and give you entry prices for where they will breakout. There are tons of stocks setting up for breakouts and we give you the entry as a member of our site. Make sure you add these 4 stocks to your list of Penny Stocks. So the best way to trade these is by setting your price alerts so you know when they hit. They will not hit the day you read this article so set your price alerts with your broker which most brokers offer as a free service.

UTSI - Breakout Price 2.21 (entry)

This stock has been trading in a range for 2 months and I guarantee you that tons of buying pressure will come in at 2.21. Hit mid $3.00’s back in may and pulled off the high damn near 40%. Keep this on your list of penny stocks to watch.

UTStarcom, Inc. engages in the manufacture, integration, and support of Internet Protocol (IP) based, end-to-end networking, and telecommunications solutions worldwide. It designs, manufactures, sells, and installs an integrated suite of wireless and wireline access network and switching systems. UTStarcom focuses on three markets: Internet Protocol TV (IPTV), Next Generation Networks (NGN), and Broadband. Its IPTV solutions enable the delivery of broadcast TV and VOD services over an IP network along with value added applications, such as high-definition TV (HDTV), time-shift TV, video calling and conferencing, distance learning, IP surveillance, and digital signage. IPTV solution also lays the framework for various applications that can be custom designed for operators. The company?s NGN solutions include IP telephony for next generation voice and data networks ensuring the delivery of voice, data, and multimedia services. NGN solution enables new applications and provides an integrated back end system to support various offerings, including local and long distance, voice-over-broadband, fixed mobile convergence, PSTN emulation, and IP messaging. UTStarcom?s Broadband solutions enable deployment of IP-based Internet, voice, data, and multimedia services over wireline and optical networks. These solutions expand the capacity and performance of narrowband, broadband, and transport solutions to deliver next generation services. The company has strategic alliances with Softbank Corp, Matsushita Communication Industrial Co., Ltd., Mitsubishi Electric Corporation, NEC Corporation, SkyCreek, and Foundry Networks, Inc. UTStarcom?s customers include service providers in telecommunications markets, such as local, regional, national, and international telecommunications carriers, including broadband, cable, Internet, wireline, and wireless providers. The company was founded in 1991 and is headquartered in Alameda, California.

PLM - Breakout Price 1.56 (entry)

This has also been trading in a tight range for a couple of months and we think it is going to pop pretty hard when it hits this. It broke the high of the range and did not breakout since the market was down 170 points.

PolyMet Mining Corp., together with its subsidiary, Poly Met Mining, Inc., engages in the exploration, development, and acquisition of natural resource properties. It controls 100% of the NorthMet copper-nickel-precious metals ore body through a long-term lease; and owns 100% of the Erie Plant, a large processing facility in the mining district of the Mesabi Range in northeastern Minnesota. The company was formerly known as Fleck Resources Ltd. and changed its name to PolyMet Mining Corp. in June 1998. PolyMet Mining Corp. was incorporated in 1981 and is based in Vancouver, Canada.

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How To Trade Penny Stocks That Going To Bounce

I am going to tell you 3 simple signs that a penny stock is going to reverse. I will give you a simple strategy to build a list of penny stocks to watch. It is important that you have access to some software that will give you a complete market view. Remember that penny stocks are priced under $5.00 in america so I am going to focus on stocks that are between $1.00-$5.00.

1. Look at the biggest decliners.

First you will need to find the biggest decliners from your software or a market view list you have access to. You can google biggest market decliners and try to find a site that will list stocks between $1-$5. There are a couple of free scanners you can use if you google “Free Stock Screeners.” You will want to find stocks that have sold off 20% or more on much higher than normal volume. Once you have found the biggest decliner for the day then add it to your list of penny stocks to watch. You will want to check your list every night and removed them if they bounce sooner than expected.

2. Look for a decreasing ATR and Light Volume

You will want a minimum of 5 red days in a row with a tightening ATR. This means maybe it went from $4.00 to $3.00 on day 1, $3.00 - $2.50 on day 2, $2.50 - $2.25 on day 3 and 2.25 - 2.20 on day 4, and $2.20 - $2.18 on day 5. You will also want to see the volume decreasing day over day. So you will usually see one huge volume spike which will represent the first sell off day then you will see it followed by a smaller volume bar. You want 5 days of decreasing volume with a tiny trading range on the 5th day.

3. Look for Stochastic Cross and Ultimate Oscillator To Cross.

Once you have found this I like to see an oversold stochastic indicator and an oversold ultimate oscillator. Once I see this I know I have found the stock that I want to try and take higher. I will want both of these oversold and I will want my cross above the 20 line with the factors listed on rule 2, that being the tightening ATR and decreasing volume. For icing on the cake I would want to see a broken down trend line. If I could have all of the stars align as listed above I would feel more than confident that I would make money and I would up my risk higher than normal.

Reversals are trick yto trade which is why I briefly went over what I look for. Using the strategy above will not give you trades to make every day but that is not what is important. The important thing is that when it does give you trades they will be very accuracy. Making trades does not mean making money in fact looking for trades can actually cost you money. I know that this strategy is very accurate because I use it all of the time. I want you to follow some and paper trade them to see if this strategy of trading penny stocks on the bounce would work for you. I try to stay away from penny stocks that don’t have a minimum of 100,000 shares and 100 trades.

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Here Is A Great List Of Precious Metal Stocks To Watch For 2010 & 2011

Here is a list of precious metal Stocks To Watch. Keep them on your radar and see if Gold begins going up as a reserve currency.

Orofino Gold Corp. (OTC:ORFG) recently reported that the results from mineralized and un-mineralized material samples, as well as selected representative samples collected from its Colombian projects that ran higher than expected in gold, silver and copper have been re-assayed. These results give the company four very strong targets and two extremely rich structures to target for Gold and Copper. The company will now implement an airborne magnetometer program as well as begin site preparation for the diamond drilling planned to take place in the second quarter of 2010.

ORFG is a precious metals acquisition, exploration, and development company. The Company acquires and explores strategically-located precious metals properties in the historically rich gold bearing jurisdictions of Colombia and Mexico. To this end OROFINO has signed an option agreement to acquire several properties in Colombia.

OLDCORP INC. (NYSE:GG) recently reported increased gold production of 609,500 ounces for the second quarter which combined with higher realized gold prices to drive record operating cash flow of $382.6 million. Reported net earnings attributable to shareholders of Goldcorp in the quarter were $828.3 million compared to a net loss of $231.6 million in the second quarter of 2009. Adjusted net earnings were $198.8 million, or $0.27 per share, compared to $99.2 million, or $0.14 per share, in the second quarter of 2009.

GG engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company produces and sells gold, silver, and copper. It also holds interests in lead and zinc projects.

EGI, Entree Gold Inc. (NYSE AMEX:EGI) has approved a total of US$3.7 million for work on its Ann Mason property in Nevada. The property was acquired as part of the transaction whereby Entrée acquired all of the shares of PacMag Metals Limited, which closed on June 30, 2010 (NR dated June 30, 2010).

A budget of up to US$2.7 million has been approved to conduct deep-penetrating induced polarization (“IP”) geophysical surveys, to be followed by core drilling to explore the potential for higher grade mineralization at depth and for extensions west of the currently defined Ann Mason resource. This resource totals in excess of 7 billion pounds of copper (NR dated January 26, 2010) associated with porphyry-style mineralization and alteration, which includes a bornite-bearing, higher grade core zone. Approximately 9,100 metres of drilling is planned in nine holes.

EGI is a Canadian mineral resource company successfully meeting the global demand for products derived from gold, copper, molybdenum and coal.

EGI is achieving this goal through concerted exploration efforts. With operations in Mongolia, China, the United States, Canada and most recently Australia, through the acquisition of PacMag Metals Limited, EGI has assembled a portfolio of projects balanced between grass roots, advanced exploration and pre-production.

Before investing in any of our stocks add them to your list of Stocks To Watch and see how they perform!

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Trading Stocks And Forex Online

One of the biggest innovations the birth of the internet has created is the advent of online stock and forex trading. the ability to check stock prices online at any time of the day and night, keep on top of breaking news 24/7 and trade instantly via online systems has opened up the stock market to a wide array of new investors which were previously put off by the intimidating nature of the stock market.

In a similar way, the ability to quickly and easily open a forex demo account has allowed novice forex traders to get their feet wet with no risk and yet still get an accurate feel for a live forex trading environment. With a Demo Account, you get a starting pool of virtual funds you can use to trade as you wish, but any losses or profits you make are completely separate from real trades. You’re not going to get rich trading on a forex demo account, but what yopu might do is learn the skills you need to succeed in a live trading environment. Think of it as a dry run - a chance to experience the thrill of trading, get used to the controls of your online trading platform, and learn how online trading transactions work int he real world without having to worry about the risk of making costly mistakes.

The avialability of market information on demand through constant news feeds allows traders in both the stock market and foreign currency markets to be kept aware of changes whcih are potentially vital to making good, profitable trading decisions without the lag that has traditionally occured. In these markets the early bird really does get the worm, or in this case the juicy trade!

Another huge advantage created by online trading platfiorms is the wealth of information available to new traders. Online communities, blogs and instructional videos, eBooks and articles mean that those new to the market have options available to them that previously never existed. The experience and wisdom of experienced traders is available on demand, and any questions you might have are most likely explained in great detail on any number of websites.

In the past it used to be that you needed to be an expert in investments and business before even starting to look at investing in these markets, but now the biggest barrier is a fear of the unknown - there’s a world of profitable investment opportunities out there for anyone with the courage to take the plunge and step out of their comfort zone. Doing a little research first, trying a free demo account and getting your confidence is an essential step on your path to success, but all of this has been made both accessible and simple - if you’re ready to take a step up from term depositis earning a couple of % interest annually and have the courage to push your boundaries, your financial freedom awaits you in the online trading world!

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Purpose Of Trading Firms

Proprietary trading, proprietary trading desk, or “prop desk” are terms used in banking to describe when the firm’s traders actively trade stocks, bonds, currencies, commodities, their derivatives or other financial instruments with its own money as opposed to its customers’ money, so as to make a profit for itself. Prop Trading Firms are become more and more prevalent for traders trying to day trade at home. There are several ways these firms choose to set up and there is a reason they are becoming so popular as I will discuss below.

The SEC has a pattern day trader rule which requires Day Traders to have a minimum of $25,000 in equity. If you don’t have $25,000 in equity then you are stuck to doing only 3 day trades per 5 rolling days. Well prop trading firms have figured out a way to hire people but charge them commissions just like a broker would to make money. This actually allows people to day trade with as little as $2,000. This is the only way around the minimum equity required to day trade. So people with $2,000 - $5,000 are all over these offers. Most prop trading firms keep 10% - 20% of the profits so that is kind of a bummer. Of course they let you soak up all of the loss!!! There is one prop trading firm that we think has the best offer and they actually pay out 100% of the profits. Obummer is trying to band prop trading, but we don’t think he is getting anywhere with that bill and for now he has a million other things to worry about.

When prop trading firms keep 10 - 20% of your profits it really puts you at a disadvantage. Especially when you take into account they let you keep 100% of the losses and most prop trading firms charge $8.00 per trade. You can see how these prop trading firms can kill you with fees. Day trading is hard enough as it is without somebody nickel and diming you for money every chance they get. On top of that to even get your orders put in you usually have to pay a software fee. You would have to be hitting on all 8 cylinders to make money with a prop trading firm, but there is one firm that actually gives you an advantage.

To read more about this firm click on the link “Prop Trading Firm.” I will briefly discuss the advantage of this firm. For starters they pay out 100% of profits. This is so important that I can’t stress it enough. 100% pay outs is a must if you want to have a fighting chance at making it. Think about it for one second. Let’s assume after all fees you made $4,000 a month. Well if they are charging you 20% of your profits now you only have $3,200 left. Then 20% for taxes and you have a little over $2,500. So the money can disappear very fast if you are getting profits taken off the top of your hard earned money. Secondly they don’t charge commissions. That is right… they don’t charge commissions. Instead of commissions they charge a monthly fee of $700. Now you might be thinking… “$700!!” That is insane… but it isn’t. Do the math with a group like Scottrade and assume you are pyaing $7 a trade and doing 5 full turns a day. Well in that scenario you are paying $1,500 a month. So this actually saves you money. This company is even great for day traders with the 25k equity required to day trade.

Prop trading firms are growing but you must make sure you go to the right one if you are considering using one. They are great for day traders that don’t have the equity required to day trade or don’t want to tie up 25k in a trading account.

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Information About Trading Penny Stocks

I want to talk about trading Penny Stocks. They can be very tempting but the main thing is that you have a great list of Penny Stocks To Watch.

Penny stocks can be a tempting investment. The share prices are so low that most people have the tendency to believe that they make for an excellent investment because with the price being so low, it would seem that the stock can not go anywhere but up. This is sometimes the case, but if you are a neophyte investor, there are some things that you need to be aware of before investing in penny stocks.
Penny stocks are defined differently depending on who you talk to. Stockbrokers define them as any stock that trades below $5 per share. Regulatory agencies sometimes classify them as a stock with a price below $2. But, generally speaking, a penny stock is any low-priced security that trades on one of two exchanges; the Pink Sheets or the OTC Bulletin Board.

The Pink Sheets are an exchange where most startup companies first get listed. There are no listing requirements to be traded on this exchange. A company does not have to have any sales, nor does it have to reveal how many shares outstanding it has to qualify for the Pink Sheets.

The reason why a company tries to get listed on the Pink Sheets, even though their stock will not go up in price because they have no sales to speak of, is because it gives their company more substance and credibility; it is typically easier to attract additional capital, obtain financing, and execute contracts and agreements if a company is publicly traded, even if it is on the Pink Sheets. Also, it is easier to get transferred from the Pink Sheets to one of the larger exchanges than it is to go from being a private company to hopping directly on to one of the major exchanges, such as the NASDAQ or NYSE. Companies listed on the Pink Sheets trade as ridiculously low as $0. 00001 per share, all the way up to $500 per share and sometimes beyond. Foreign companies often have some of their shares sold in the United States by listing them on the Pink Sheets.

The OTC (Over-The-Counter) Bulletin Board is similar to the Pink Sheets. This exchange consists of relatively young companies either with no sales or a small amount of sales. Companies listed on it are sometimes fully reporting (meaning that they reveal how many shares they have outstanding and what their balance sheet looks like). Often, companies go from the Pink Sheets to the Bulletin Board once they are ready to become fully or semi-reporting.

Most publicly traded companies that are now listed on one of the major exchanges (NASADAQ, AMEX, NYSE), at one time or another, were penny stocks listed on the Pink Sheets or Bulletin Board. Rarely does a company go from being private directly to one of the 3 major exchanges. Google is a rare example of a company that was able to do that, because they were so successful so quickly. But, most companies have to pay their dues and edge their way up from the penny stock exchanges to the bigger ones.

So, investing in penny stocks can be an excellent investment because some of these young companies will one day be worth a fortune. The hard part is finding the right company to invest in, because for every successful startup company, there is also one that fails within the first year or two.

To find the right company, there are a few things you need to look for. Number one, you need to do some research and try to find out how many shares the company has in its float. The float is the number of shares that are currently being traded. Companies listed on the Pink Sheets usually do not officially report this number to the public, but with a little research, you can usually find out. It is usually contained in articles written about the company, or in TV or radio interviews with company officials that are sometimes archived on certain websites. You can also look for the information on message boards or forums where stock traders chat with each other. Simply do a search on Google and read every article ever written about the company, and you will likely find out about their float. This is important because you do not want to invest in a company that already has something like 500 million shares in its float. Companies with this kind of share count are likely having problems moving forward, so they have issued more and more shares to raise money just to stay alive. You want to look for companies that have approximately 5 to 100 million shares in their float.

Other things that you should look for in a new company are barriers to entry, patents, and consumer demand. Here are the questions you need to ask yourself when analyzing the probability that a company will be successful:
1) Barriers to Entry: Are there are obstacles that will make it difficult for the company to sell its products or services?
2) Patents: Is the product that the company is going to sell patented? A patent will prevent other companies from producing the exact same product.
3) Consumer Demand: Will there be a demand for what the company is selling? Sometimes a company has a great new invention or an exciting technology, but if it is not something practical that consumers are going to want or need, then it does not matter how great it is.
I hope this information has helped you to get acquainted with penny stocks. Try to set aside some money for investing and start while you are still young. The earlier you begin, the more money you can potentially make down the road. Do your homework on the companies you are going to invest in and you will do fine.

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