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Wednesday, July 8, 2009

Limit Your Trading Risks In Penny Stock Investing

By Malcolm Torren

The worst thing that could happen in this business is when you go broke. Nobody ever wants that to happen and so do you. If you run out of your investment funds, the stocks and shares just keep moving on and never stop. Of course you won't be able to operate anymore because you have no money to spare. That couldn't be difficult to understand, right? So that this horrible vision of bankruptcy will not happen, it is important that you set your limitations in penny stock investing.

Things can't be more obvious. No matter how cheap the stocks are, it is important to keep your reservoir full as well. The stock market trend is not predictable. You share can sell high today and you could lose it tomorrow. What if that loss was the last investment money you have? Sad story but this can happen to anyone who is not setting clear goals for themselves. This article talks about some random guidelines on how to keep your savings intact.

- Don't go beyond your budget. This is common sense. You can't spend any more than what you only have. But what this means exactly is that if you are into penny stock investing, don't pour in all your savings. Set aside a budget for your investment to bank roll. A reasonable margin would be not more than ten percent of your personal funds. Any profit made, you can always add it to your savings. But don't go above the 10% mark unless you can really afford it.

- Know the loops in penny stock investing. In this same way as setting up a business, you have to understand the dynamics and the operations. This will lead you to better understanding of the trade. With it, you can make decisions with better precision, not accurate but better.

- Know the risks you may encounter. Known to everyone in the trade, penny stock trading ranks the highest in risk scale. The stocks lack liquidity. Fraudulent exercises are very possible in this arena. You could lose your money like bubbles bursting in air. But good investors are natural risk takers. They understand it like it's at the back of their hands. With this mindset, you can set your investment funds better.

- Learn when to say yes and no. Don't get carried away if you stock price goes up. It can go down just as fast. So it is important to learn some timing strategies in penny stock investing. This should save you from losing more money and keep your savings steady.

- Investment is not gambling. If you lose the bet, you can't have it back. So you bet another. Although stock market trading behaves somewhat similar, it's not exactly the same. Investment aims for profit. When you get your share, you bank roll it for more profit. And you're not the only one benefiting it. Gambling is just for entertainment. Penny stock investing is for serious money makers.

The list can simply go on. But no matter how sensible and persuasive these tips are, it's really up to you. It's your penny stock investing money. You have full authority over it. Small cap trading can make you smile a lot if you stop betting your money and start thinking of it as investment. - 23223

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Why Prudent Investors Must Choose Gold?

By Peter Blake

For investors like small companies, an investment portfolio without precious metals like gold is embarrassing now, and there are too many compelling reason for investing in gold.

Gold bullion investments are now considered to be sensible today more than ever. Countries like India have this wide practice of investing in gold through ornaments, which indeed is a wealthy practice.

However, it is better to invest in gold bars and coins than ornaments, albeit every form of gold investment is known to be the safe and prudent option. The power of gold as an investment has been backed up by various reason especially for the small companies and business plans. There are many inherent advantages of gold investment for small companies, such as:

- Gold is the Primary Currency: Indeed it is! Different nations have different paper currencies starting from dollars, pounds to euros. These currencies are all supported by the value of gold. Gold is the major determinant of the number of paper currencies to be printed by the nations, since the value of all these currencies, such as dollars and pounds are actually dependent on the value of gold which in turn poses to be the security. Therefore, gold is the main currency of the world and it also has indisputable value, which isnt the same with paper currencies. It has a real intrinsic value for its holders.

- Gold Has High Liquidity Value: Gold is a liquid asset; it has the highest liquidity. Small companies that trade gold can convert the gold assets conveniently into the currency of the nation at any given time. This basic property of gold makes it a precious asset for an investment.

- Gold Provides Hedge against Inflation: Gold is the best class of asset that provides edge against inflation. It is equally effective for small company investment and for personal investment policies. You can buy gold anytime also.

- Gold Investments are Widespread: Gold does provide widespread investment facilities. Gold is the only diversified and advantageous assets that must be includes in every investment portfolio. It acts as a protection against inflationary conditions and also prevents the loss of intrinsic value.

Gold investment is undoubtedly the most prudent one for small companies. At least 5-10% should be invested in gold for better returns. - 23223

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Is It Possible to Overcome Frustration by Trading on Forex?

By Alex Miller

One of the most difficult things about getting started whenever you're trading in Forex is the fact that so many people that are trying to teach you how to do it make it seem as if it is a big process. The simple fact of the matter is, you can get started with Forex rather easily provided you follow a few simple rules and have a basic understanding of the process.

There is one principle that you need to understand about the market that is often due to many people who are just learning Forex. That is the fact that Forex is a zero-sum market, unlike the commodities market. Whenever somebody places a trade on the Forex market, and equal trade is made in the opposite direction by someone else. At the end of the day, one person is going to lose as much as the other person gains, there is never any money that is mysteriously generated in this market.

Even though you may not realize this, it is not possible for you to trade on forex without going through a broker who is qualified to place the trade for you. Although you have the opportunity to access the broker over the telephone, many people are simply going with an online platform because of the benefits that it gives to you. One of the main benefits that comes from using an online platform is the fact that you can trade in real time.

Some of the additional benefits that you get by using an online platform include tutorials that will walk you through every step of the process as well as some advanced tools which will automate part of your trading. They will also be able to help you to gauge which direction the Forex market might be moving, but there are other tools that do that as well.

There are a number of different systems that are available for you to use which will enhance the online tools that are inside of the forex platform. The most popular of these systems analyzes different aspects of the Forex market in order to determine which direction it is going to be moving. Many traders use this regularly to help them make up their mind where they will place their trades. Other tools that are available include automated as well as semi automated instruments for trading Forex.

One word of caution that you should accept from me is that you should never use an automated program unless you are comfortable with it. Since these programs are going to be trading with real money, you need to make sure that they do not drain your account while you're not watching. Always make sure that you maintain control over your trading, even though you might want to use one of these programs at some time or another.

If you had taken a hit in recent years because of the economic troubles that all of us are experiencing, the Forex market is still available to help you to build a portfolio up again. If you're unfamiliar with any type of trading or if you have not yet started saving for the future, the Forex market is a great place for you to start. Take a few minutes to learn the basics and then get started with one of the online platforms that are available. - 23223

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How Good Is Forex Ambush?

By James Hodges

You may be wondering if Forex Ambush is the real deal or just another dime a dozen forex scam? Unfortunately there have been more scams than ever before in the forex trading community.

First, let me explain that Forex Ambush is not just some generic step by step method nor is it some kind of automated trading system that trades for you automatically. Rather, its just signal which lets you know when you should buy or sell a currency pair.

Listen, Ill be the first to say that making money in the forex market is not the easiest thing in the world. This is doubly true if you are just starting out. This is exactly why beginners always seem to be buying useless information online. They do it because they dont know any better.

As long as you know what you are doing, though, you wont be falling for these kind of scams. Because the truth is, forex trading is a very respectable way to make money.

This is exactly the reason why Forex Ambush is so loved by new traders. Since they dont really know what they are doing, Forex Ambush takes care of all the work for them. All the important trading decisions are made for them.

The underlying reason why the signals of Forex Ambush are successful is because they are based on the direction of the trend of the market.

They developed the course with the cunning use of Artificial Intelligence. They used the AI the same way a professional trader would: by using complicated algorithms.

When it comes to receiving signals from Forex Ambush, youll have to make some tough decisions on the signals that you are receiving. If for whatever reason, you dont like a particular signal you will have to wait for the next one. - 23223

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Stock Market Ticker Tape

By Gilbert Stockton

The stock market ticker tape is, now, a computerized unit that relays information about a stock's trading activity to investors around the world. The stock market ticker tape's information includes the stocks' symbol on the exchanges, the latest price per share, and its trading volume. Before computerized methods, stock market ticker symbols were printed out on a thin piece of paper that continuously streamed out of a ticker-tape machine.

Technology has came a long way in that we no longer need to print stock information for ticker tape. All of it can be sent online. The stock ticker tape machine was created in 1867 and used to take a long time so send information out to brokers and the closest offices go the information quickest. Which explains why offices were built so close to the New York Stock Exchange.

Stock market ticker symbols are the letters (once in a while also numbers) used to denote a particular security that is being traded publicly and/or on stock exchanges. This symbol is chosen by the company when it begins issuing shares for public trading, and it's what is used to track stock activity and place buy or sell orders by investors. These brief symbols are necessary to streamline the vast amount of activity information that flows through stock exchanges on every business day. Without the stock market ticker symbols, confusion and turpitude would reign in the stock market.

People who tune into TV shows like MSNBC Business will see streaming stock market ticker symbols going across the bottom of the TV screen. These can be tricky to understand unless you know what they are all about; how to read the symbolic language.

Stocks that are on the NYSE are denoted by three letters. Stocks traded on the Nasdaq are denoted by 4 letters. Mutual funds use letters and numbers to differentiate their symbols.

"Ticker" comes from the conceptual word of "tick", which is any activity of a stock whether it be up or down. A stock market ticker symbol readout will include, in order from left to right: the unique call letters of a specific security; the volume or number of shares traded (K = 1,000, M = 1,000,000 and B = 1,000,000,000); the last bid price for that stock, which is considered its price until there is a new bid; an up- or down- arrow that indicates if the stock's price is down or up from where it started the trading day; and the change amount, or the difference in price from the previous trading day's closing price. - 23223

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