1. What are Penny Stocks?

Penny Stocks, according to the Securities and Exchange Commission (SEC), refers to low-priced (below $5), speculative securities of very small corporations. A penny stock is traded over OTC (Over the counter) through quotation services such as the Pink Sheets or OTC Bulletin Board.

2. Why Buy, Sell or Invest in Penny Stocks?

Penny stocks are normally shares of small corporations that have abundant potential but are not followed by normal Wall-Street money managers or stock brokers. Oftentimes, Wall-Street money managers and stock brokers won’t follow a stock unless it trades above a certain threshold, sometimes $1.00, $3.00 or even $5.00 per share. These low priced penny stock companies and shares can reward investors who get in early with very substantial returns. Sign up today for our FREE penny stock alerts so that you do not miss out on some of the best penny stocks.

3. How can I find Hot or  Good Penny Stocks to Invest in?

Start by joining our FREE email list to receive alerts on the hottest Penny Stock companies. Do your research on the company we alert you to and make sure you understand the company’s business as well as its goods and services. Read the company’s reports, filings, press releases and financial statements. Speak with your registered stockbroker or financial advisor.

4. Where can I Buy, Sell or Trade Penny Stocks?

Most online brokerage firms will allow you to purchase penny stocks. Some examples would be Scottrade, TDAmeritrade, Etrade, Ing Direct, Charles Schwab, Trade King and Interactive Brokers.

5. How safe is my money in these stocks?

All investment strategies involve risk and you should always consult with your registered investment advisor or stockbroker when considering investment opportunities. While considered more speculative than other investments, penny stocks also provide the opportunity for substantial returns.

6. What kind of Penny Stocks do you alert?

We alert our members to penny stock corporations, listed on the OTC, OTCBB, NASDAQ, AMEX and even sometimes the NYSE. Mainly we tend to focus mainly on OTCBB companies that we believe have both short and long term potential. Some of the things we look for in penny stock companies are: an experienced and proven management team, goods and/or services with excellent potential, emerging growth sector, existing contracts or clients, proven track record and much more

7. Are you compensated for providing alerts?

We’re sometimes compensated for alerting our subscribers to a particular company. However, we do turn down a number of companies that approach us and we will only accept compensation for a company that we have researched and believe will provide our subscribers with substantial opportunities both for short and long term returns. Whenever we do accept compensation on an alert, as required by the

Securities and Exchange Commission (SEC), we’ll disclose who paid us, the

amount, and the type of payment within our email and website disclaimer.

8. What is a Stock Quote?

A stock quote can either mean the very last price of which a stock sold at or the current price in which market makers are prepared to buy and sell a stock. Stock quotes can be displayed in either real-time or 15-minute delay. The type of quote you obtain relies upon the source of the information and the exchange on which the stock is currently traded.

9. What are Delayed Quotes?

The easiest stock quotes to comprehend are delayed stock quotes. These quotes are typically on websites like Yahoo Finance and show the price at which the stock traded about 15 to 20 mins ago. Having said that, these prices don’t show you at what price an individual is willing to buy or sell the stock right this moment.

10. What are Real-Time Quotes

Real-time quotes are tricky since the act of buying or selling a stock can move the price up or down. This is especially valid in an “order driven market” like the New York Stock Exchange where the orders themselves set the price. Electronic exchanges such as the NASDAQ are “quote driven markets” where market makers compete to publish the best bid and ask prices for stocks. You are more inclined in this type of market to know precisely what price you will get, or there a bouts, before placing the transaction. As an example, Alphatrade.com offers real time quotes as well as Level I and Level II quotes.

11. What are Level 2 Quotes

Skilled stock traders depend on “Level 2 Quotes” to analyze the buy and sell pattern of a stock in real time in order to better predict what their own order may do to the price. Level 2 quotes display what type of institution was active in the transaction, the volume with the trade and what prices were being offered. As an example, Alphatrade.com offers real time quotes as well as Level I and Level II quotes.

Learning How To Sell Stocks properly is essential to profitable investing because buying a stock with a clear exit strategy is the only way to prevent huge losses from decimating your portfolio.

Many investors manage to select the right stocks that are increasing in price at the time of purchase.  The stock continues to increase in value creating a nice paper profirt.  Then the same stock suddenly returns to the purchase price or lower resulting in close to zero profit or a loss.  Unfortunately that same investor will hold onto the position with the anticipation of more price increases.

What usually happens in cases like this is that the stock continues its downward slide leading to even further losses until emotions take over and the stock is sold.  Then you can guess what happens next – the stock shoots right back up sometimes moving into positive territory again.

How can this roller-coast ride be avoided?

First, an assessment of the overall market timing needs to be performed.

In general, new long positions should never be entered unless the overall market is either in an uptrend or recovering from an extreme bottoming out process.  The key objective for any market timing analysis is to identify the best time to own stocks, not to identify the extreme top or bottom of a trend.

Patience should be employed to make certain the overall market is supporting generally higher stock prices before new long positions should be entered.  Read more on how to buy stocks.

Most stocks will follow the general market trend and pullbacks should be expected and welcomed in a market showing bullish tendencies.  Market pullbacks are healthy for the market and in turn create many buying opportunities for those who know what to look for.

Second, an uptrending stock you own becomes a sell candidate if it no longer performs appropriately for an up trending stock.

An uptrending stock should be expected to make higher-highs and higher-lows within a fairly predictable amount of time – usually by following a key indicator such as the MACD.

The following chart shows the characteristics of an uptrending stock.

Characteristics of an Uptrending Stock

This stock is making higher-highs and higher-lows on a consistent basis.  When a stock fails to make a higher-high when expected it should be added to a sell list because that is an unexpected action.  Assuming the stock was purchased correctly the position should at least have some profits and action should be taken to preserve those profits before they turn into losses.

When a stock makes a lower-low it is a sign that at least for now the stock has either changed its trend from up to down or is transitioning to a new down trend.  This sort of action usually trips a stop loss order that is in place to prevent or minimize trading losses as much as possible.

A stop-loss order is entered at the preestablished exit price as soon as the position is in the account. This single action alone would prevent many small losses from turning into portfolio damaging positions.

Third, a new long position is never entered until the first exit point is established.

Examine the chart below to see where the optimal stop loss would be for an uptrending stock

For a stock in an uptrend the stop-loss order should be placed just under the prior reaction low.  Depending on market conditions and stock volatility you might want to consider the prior reaction low – but never lower.

This stop loss order would remain in place until the stock makes a higher-high and then a higher-low.  The stop order is then moved up under the new low.  Stop orders are NEVER moved down in price..

How To Sell Stocks – Stop orders for a base break out

For a stock breaking out from a new base, the stop-loss order should be placed just under any of the the lows prior to the breakout move.  Preference of course should be given to the highest low as that approach would preserve the greatest profits or reduce losses if the break out fails.

As in an uptrending stock, the stop-loss order should be moved up when the stock makes a higher-low after making a higher-high from the breakout move.

Again, Stop orders are NEVER moved down in price.

Real life example of how to sell stocks for profitable investing.

For a real life example of how to sell stocks we’ll examine the performance of Apple Computer – symbol AAPL – between November of 2011 and the end of 2012.  Click on the AAPL chart and follow along in a new window.  We’ll ignore the market timing aspect for this analysis.

How To Sell Stocks – Apple Computer – AAPL

In mid December of 2011, AAPL changed from market performance to leading the market; AAPL was now performing better than the market as a whole and so became a candidate for investing consideration.

The first real buy signals appeared when AAPL was just under $400 a share as the stock price moved into new highs.  Once the price moved above $400 there was no stopping its performance until May of 2013.

A purchase of AAPL below $400 and the appropriate stop loss order placements  would have kept you in this position until stopped out at around $580.  This would have provided a $45% profit with almost no downside risk when using this stop loss strategy.

As AAPL increased in price the appropriate stop loss levels where located at $400, $480, $510, and then two very close orders around $580.  The last stop order would have been exercised as AAPL refused to make a new high, made a lower low, and then moved into a market perform phase.  Market perform means that AAPL was no longer leading the market and therefore did not deserve our investing dollars – at this time there are better investments to be had.

AAPL continued to perform with the market until August of 2013 when it once again began to lead the market in price performance.  APPL could once again be purchased as higher highs were being established with the optimal stop level at about $550.

This time the leadership of AAPL did not last long, only until October of 2013 when it started severely under performing the market.  The last stop of this two month phase would have sold this position with a smaller profit – but nevertheless a profit – just as the stock rolled over and promptly lost almost 30% of its value.

An under performing stock does not deserve your investment dollars and so AAPL would go on the back burner until it starts to outperform the market again.

This simple example shows the benefit of being invested in only stocks that are out performing the market.  AAPL is certainly a good company but this strategy will allow you to earn profits in leading stocks, sell and take profits when the stock is out of favor, and buy back in when the stock once again leads the market.

As binary options become increasingly popular and more widely available, the increase in binary options trading strategies is becoming more evident with each passing day. Many of these binary options strategies have been developed by investors that have used them to profit considerably from the markets. If you are looking to get your binary options trading off to the right start, you should consider choosing a solid trading strategy to follow.

The problem lies in that there are hundreds of trading strategies that you can employ. However, all successful strategies have a couple of things in common. Every profitable binary options strategy is simple to use and maximizes profits while minimizing losses. Let’s examine a few popular binary options trading strategies that have proven to be successful by traders all around the world.

Binary Options Strategies for Simplicity

Sometimes, the simplest strategies are the best. The Call or Put Strategy is one of the simplest and most straight forward binary options strategies. When using this strategy, you simply purchase a call option if you believe the price of an asset will increase by the trade expiration time, or you would purchase a put option if you have determined that the price will decrease during the same time period. For example, if you decide to purchase a 30 minute binary option for Apple stock, and you feel the stock will increase in value in half an hour, you would simply purchase a call option. Even if your prediction is wrong and the trade finishes out of the money, you may still be able to receive 15 percent of your investment back.

Binary Options Strategies for Damage Control

The ability to minimize losses is paramount in becoming a successful binary options trader. A great risk control strategy is the Call and Put Strategy. To use this strategy, you first simply purchase a call or put option for an asset. If you see that the trade will finish out of the money, then halfway through the trade you would purchase an option in the opposite direction. This allows you to hedge your bets and at least break even on a trade that could have resulted in a significant loss.

Binary Options Trading Strategies for Maximum Profits

Reducing risk is great, but chances are you’re interested in binary options because you want to make some serious money. Well, the Doubling Strategy can do just that. The Doubling Strategy is popular amongst experienced binary options traders who know how to squeeze as much out of the markets as possible. It is basically the exact opposite of the previous strategy. So, instead of minimizing your losses, this strategy allows you to maximize your gains. With the Doubling Strategy, you simply purchase a second contract in the same direction as the first contract if the first contract looks like it will finish in the money. This allows you to double the profits you can receive.

This is just a small sample of the seemingly countless binary options trading strategies that you can employ during your quest to become a financially secure binary options trader. Most of the strategies that are available in the marketplace have been vetted and work the majority of the time when they are used properly. However, choosing the best strategies for your trading style and financial circumstances is entirely up to you. Successful traders understand and employ multiple binary options strategies in order to profit from nearly every situation. Therefore, the more strategies that you learn to implement, the more successful of a trader you will become.

Fundamental Binary Options Trading Strategies

1. The pairing binary options strategy:

The pairing strategy can consistently yield high profits from trading a single binary option contract. This popular strategy involves pairing up a money put with an in the money call. If the spot price of the asset falls between the two chosen prices upon expiry, the nested position allows you to still make profits.

2. Hedge and double position binary options strategy:

Another popular strategy is to hedge and use a double position to pair the call with a put. This hedging strategy not only reduces risks, but it can lead to huge profits as well.

3. The betting binary options strategy:

This common trading strategy involves a trader placing a call or put option if he or she expects a big market move in a particular direction. This strategy is often successful because traders tend to base positions on widely used indicators that can cause assets to gain price momentum in a certain direction.

4. Stop-loss binary options strategy:

This strategy is by far one of the most popular amongst binary option traders. The strategy seems simple upon first glance, but experience is often needed in order to predict the perfect stop-loss time. The following factors can greatly affect the stop-loss strategy and make it difficult to implement:

• Trading vehicle – The strategy depends on which type of asset you are trading, because each type of asset requires its own stop-loss strategy. Someone trading options might use a two-dimensional strategy, while someone trading stocks will likely use a consistent stop-loss level.

• Risk tolerance – The stop-loss strategy used by a trader is determined in large part by their risk tolerance. Every trader has their own aversion to risk, and this strategy is largely dependent on a trader’s personal risk preferences.

• Trading Style – Every trader also has their own trading style, which affects the type of stop-loss strategy that they feel comfortable implementing. One trader may feel more comfortable making 10 trades a day and another may prefer to focus on making one winning trade a day. The former would utilize a tight stop-loss and the latter would more than likely choose to use a wider stop-loss strategy.

• Market mood – The mood of the market also has an impact on the stop-loss strategy used by traders. Traders tend to use wider stops in volatile markets and tighter stops in quiet markets.

As you can see, stop-loss strategies depend upon numerous factors and can be quite complex. Each trader uses a stop-loss strategy that best suits their trading style and the trading system they have chosen to implement.

The high yields and quick returns of binary options are responsible for the rising popularity of this unique trading vehicle. Binary options may be simple for beginners to learn, but binary options trading is also perfect for advanced traders that can incorporate various strategies into their trading game plan. A solid binary options strategy can be responsible for nice profit returns, but using multiple trading strategies can erase someone’s money worries for the rest of their life.

Using any of the above strategies, it is very easy to reduce risks and make considerable profits in a short amount of time trading binary options. However, like any form of trading, there is always a risk of capital when trading binary options. Fortunately, many traders have found that experience combined with the right trading strategy can lead to lucrative profits in no time at all.