Archive for March, 2009
Buying Penny Stocks the Lazy Person’s Way
Written by troy on Saturday, March 28, 2009 | No Comments
Categories: Uncategorized Tags: Buying Stocks, Rapid Returns
Buying penny stocks can produce high profits quickly from relatively small investments, but it also carries quite a bit of risk. Risk can be reduced through careful evaluation of stocks, but the evaluation process is difficult and can require a lot of time.
There is a new computer “bot” that has been created that analyzes penny stocks thorough in-depth mathematical analysis and by doing so dramatically decreases the risks and increases the profits from buying penny stocks, while greatly simplifying the work of choosing what stocks to buy and when. As you probably guessed, a system this effective comes at a rather high cost, but there is an inexpensive way for even the smallest stock investor to get beneits from it.
Penny stock investing has big advantages when it comes to large, rapid returns on investment, and the fact that penny stocks are priced low enough for even very small investors to buy stocks and have the opportunity for a diversified portfolio. With penny stocks, a change in the price of the stock of just a few cents can mean a large change in the value of the stock on a percentage basis, leading to a large potential return on investment, especially when compared to the usual return on investments with higher valued stocks.
To show the power of penny stock price changes, let’s do a comparison. If you wanted to invest $1000 and found a stock you decided to buy at $100 per share, if it increases by $1 per share, you’ll have made $10. On the other hand, if you invested $1000 in a penny stock that initially sold at $1 per share and it increases by $1 per share, you’ll make $1000!
Now, by the same token, penny stocks can lose a bunch of money very quickly too, which is one reason why it is important to be very careful when buying penny stocks. Another reason that penny stock investing is risky is because of shady or outright fraudulent practices of some individuals involved in marketing and selling penny stocks. It is often very hard to get reliable information to really evaluate penny stocks, as companies that issue these stocks are not legally required to file financial reports with the Securities and Exchange Commission.
Various unscrupulous tactics may be used to lure unsuspecting investors into buying penny stocks as a ploy to drive up the stock price and then insiders may quickly sell of their stock at a high price. The sell-off drops the stock value sharply and the investors take a big loss. In investing, it is typical that investments with the highest potential returns will also have the highest risk, but in penny stock investing, the high rate of fraud increases the risk well beyond just what is produced by the natural tendencies of the market.
To overcome the risks, buying penny stocks has traditionally required a large investment of time to research stocks to avoid the scams and predict a relatively good rate of return. A careful penny stock investor could spend quite a bit of time evaluating a single stock. This effort would hopefully pay off in the long-run, but the time required in doing this often made penny stock investing out of the question for part time investors.
Then along came “Marl”, which is a penny stock buying computer bot designed by a couple of guys that had the unusual combination of computer programming expertise and in-depth understanding of stock investing. Marl has several advantages over human investors, but the biggest advantage Marl has is that there are no emotions involved in his stock picks. Marl makes his picks based on cold, hard, statistical calculations. Plus, Marl can do a detailed analysis of hundreds of stocks in less time than it would take even an expert stock analyst to do a cursory evaluation of just one stock. This doesn’t completely eliminate the risks of buying penny stocks, but it does cut down on the risk considerably.
Marl has been so effective that he has allowed for huge gains by advanced investors. Because of this, Marl is considered a bargain at the $28,000 licensing fee, but bargain or not, this is well beyond the means of small investors. There is an option to use Marl that is available to investors with even the smallest of budgets though. The guys that developed Marl put out an e-newsletter that gives Marl’s top penny stock pick for each week. For new investors, this might be even better than buying the full Marl program, as it narrows down the investment options to just one stock every week, instead of figuring out what to buy out of hundreds of options. Using this system, even complete novices have the potential to make good returns on their penny stock investments.
Although the inventors of Marl have indicated that they will be limiting their subscriber list to the newsletter and may stop selling new subscriptions in the near future, hopefully they will have compassion for the small investors who need all the help they can get and continue to allow new subscribers long-term. In the meantime, small investors now have an option to dramatically assist them in buying penny stocks.
By: George Best
About the Author:
There is a new computer “bot” that has been created that analyzes penny stocks thorough in-depth mathematical analysis and by doing so dramatically decreases the risks and increases the profits from buying penny stocks, while greatly simplifying the work of choosing what stocks to buy and when. As you probably guessed, a system this effective comes at a rather high cost, but there is an inexpensive way for even the smallest stock investor to get beneits from it.
Penny stock investing has big advantages when it comes to large, rapid returns on investment, and the fact that penny stocks are priced low enough for even very small investors to buy stocks and have the opportunity for a diversified portfolio. With penny stocks, a change in the price of the stock of just a few cents can mean a large change in the value of the stock on a percentage basis, leading to a large potential return on investment, especially when compared to the usual return on investments with higher valued stocks.
To show the power of penny stock price changes, let’s do a comparison. If you wanted to invest $1000 and found a stock you decided to buy at $100 per share, if it increases by $1 per share, you’ll have made $10. On the other hand, if you invested $1000 in a penny stock that initially sold at $1 per share and it increases by $1 per share, you’ll make $1000!
Now, by the same token, penny stocks can lose a bunch of money very quickly too, which is one reason why it is important to be very careful when buying penny stocks. Another reason that penny stock investing is risky is because of shady or outright fraudulent practices of some individuals involved in marketing and selling penny stocks. It is often very hard to get reliable information to really evaluate penny stocks, as companies that issue these stocks are not legally required to file financial reports with the Securities and Exchange Commission.
Various unscrupulous tactics may be used to lure unsuspecting investors into buying penny stocks as a ploy to drive up the stock price and then insiders may quickly sell of their stock at a high price. The sell-off drops the stock value sharply and the investors take a big loss. In investing, it is typical that investments with the highest potential returns will also have the highest risk, but in penny stock investing, the high rate of fraud increases the risk well beyond just what is produced by the natural tendencies of the market.
To overcome the risks, buying penny stocks has traditionally required a large investment of time to research stocks to avoid the scams and predict a relatively good rate of return. A careful penny stock investor could spend quite a bit of time evaluating a single stock. This effort would hopefully pay off in the long-run, but the time required in doing this often made penny stock investing out of the question for part time investors.
Then along came “Marl”, which is a penny stock buying computer bot designed by a couple of guys that had the unusual combination of computer programming expertise and in-depth understanding of stock investing. Marl has several advantages over human investors, but the biggest advantage Marl has is that there are no emotions involved in his stock picks. Marl makes his picks based on cold, hard, statistical calculations. Plus, Marl can do a detailed analysis of hundreds of stocks in less time than it would take even an expert stock analyst to do a cursory evaluation of just one stock. This doesn’t completely eliminate the risks of buying penny stocks, but it does cut down on the risk considerably.
Marl has been so effective that he has allowed for huge gains by advanced investors. Because of this, Marl is considered a bargain at the $28,000 licensing fee, but bargain or not, this is well beyond the means of small investors. There is an option to use Marl that is available to investors with even the smallest of budgets though. The guys that developed Marl put out an e-newsletter that gives Marl’s top penny stock pick for each week. For new investors, this might be even better than buying the full Marl program, as it narrows down the investment options to just one stock every week, instead of figuring out what to buy out of hundreds of options. Using this system, even complete novices have the potential to make good returns on their penny stock investments.
Although the inventors of Marl have indicated that they will be limiting their subscriber list to the newsletter and may stop selling new subscriptions in the near future, hopefully they will have compassion for the small investors who need all the help they can get and continue to allow new subscribers long-term. In the meantime, small investors now have an option to dramatically assist them in buying penny stocks.
By: George Best
About the Author:
George Best is a small investor from San Antonio, Texas. To learn more about Marl and how he works, please visit Buying Penny Stocks.
Best Penny Stocks
Written by troy on Saturday, March 28, 2009 | No Comments
Categories: Uncategorized Tags: Best Penny Stocks, penny stock, Profits, Stock Trader
What exactly are penny stocks and why and how have they become profitable ventures for many people? These questions are very important for your success in penny stocks trading. You see, the term “”penny stocks”" is susceptible to a variety of definitions, and choosing the best penny stocks definition to adopt can prove crucial to the amount of profits you could rake in this industry.
Choosing the best penny stocks definition can boil down to three options.
1. Some consider price per share as the best penny stocks definition. This means that there is a price cap per amount of penny stock trader. For example, the SEC determines that all the stocks of a certain industry shall be traded for less than per piece; some people would consider this as penny stocks.
2. Some consider the market where trading transpires as the best penny stocks definition. There are stated members of this market, and if a stock falls under any of them, they’d be considered as penny stock.
3. Some consider market capitalization as the best penny stocks definition. This means that the total worth of a company is viewed. If a company sells its shares for , for example, and it has 1 million shares in circulation, its market capitalization is pegged at 1 million dollars. Some would consider stocks from a company with a market capitalization below 1 million dollars as penny stocks. This ceiling is variable.
The matter of what is the Best penny stock definition is essential to your success in this industry. Consistency is the key. You should buy and sell based on a certain criteria. And since there is no universal criterion when it comes to penny stocks, you should come up with your own, and you should stick with it.
By: Richard
About the Author:
Choosing the best penny stocks definition can boil down to three options.
1. Some consider price per share as the best penny stocks definition. This means that there is a price cap per amount of penny stock trader. For example, the SEC determines that all the stocks of a certain industry shall be traded for less than per piece; some people would consider this as penny stocks.
2. Some consider the market where trading transpires as the best penny stocks definition. There are stated members of this market, and if a stock falls under any of them, they’d be considered as penny stock.
3. Some consider market capitalization as the best penny stocks definition. This means that the total worth of a company is viewed. If a company sells its shares for , for example, and it has 1 million shares in circulation, its market capitalization is pegged at 1 million dollars. Some would consider stocks from a company with a market capitalization below 1 million dollars as penny stocks. This ceiling is variable.
The matter of what is the Best penny stock definition is essential to your success in this industry. Consistency is the key. You should buy and sell based on a certain criteria. And since there is no universal criterion when it comes to penny stocks, you should come up with your own, and you should stick with it.
By: Richard
About the Author: