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Friday, November 13, 2009

The Major Players In The World Of Penny Stock Trading

By Malcolm Torren

Penny stock trading is very appealing to new investors for two reasons: One is because it is cheap. The price range is between one to three dollars and not exceeding five dollars. This is defined by the Securities and Exchange Commission or the SEC. In actual practice, shares can even go lower than a dollar each. The second magnet for new investors is its high potential for fast profit at a short period of time.

But how does it happen? Where does all the money come from and where does it go? In penny stock trading, there are key players that make a dynamic exchange of shares. The common goal is to make money and reinvest. Here are the role players in the business:

- Investor. If you are an investor, you are playing a key role in the stock market trading floor. The investment money comes from you. Of course an investment cannot be an investment if there is no intended profit to make. Some investors would trade on to many shares. This is because if one of your stock investments is losing, you can balance your profitability from another source. You also make decisions of your trading. Why and how?

- The Broker. You as the investor cannot make transactions if there are no stock brokers to help you. They can influence the market stocks. They have a high degree of intelligence in the penny stock trading business. For every profit you make, they earn by commission. They also have other client investors to attend to. In some cases, penny stock brokers charge for investment consultations to their clients. But what exactly are they doing with your money?

- The Small Cap Companies - There won't be any investment made if there are no entities needing it. In the penny stock trading market, they are call small cap companies. These are companies that can either be newly established, wanting to expand their business resources for business growth, or going bankrupt and hoping to revitalize their financial resources. Whatever the reasons may be, these entities are responsible for the dynamics of your money.

- The Stock Exchange - This is the venue where the buying and selling of shares take place. The trading is done every business day. All of the penny stock brokers meet at a huge spacious room they call the trading floor. This is even shown in movies that involve stock exchange scenarios.

- Securities and Exchange Commission - Of course, to keep the entire procedure in penny stock trading orderly and discipline, the SEC holds authority. They set the regulations and guidelines, the requirements needed for companies to bid their shares, and sometimes initiate the jailing of fraudsters who conduct anomalous business here. - 23223

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6 Things To Know About Extracting Oil And Natural Gas

By Terry Stanfield

Oil and natural gas drilling are often thought of as one concept but can be two different things. When a company is drilling for natural gas, they may hit on crude oil. Crude oil is refined to make gasoline, whereas natural gas is used for a variety of different purposes. Companies that are oil drilling are looking for one type of natural resource for fuel as well as other purposes.

People who invest in well prospects often think that they are drilling for either gasoline or oil and do not often know the difference. When an oil company drills into the earth, they are looking for natural resources that can be use for fuel or for other purposes. Crude oil, for example, is not only used for gasoline, but for petroleum and petroleum based products.

One thing that people need to know about oil drilling is that the well can turn up with natural gas, crude oil or it can turn up dry. A dry well is one that yields no natural resources, although it may be explored again at a later time.

Often, when drilling for natural gas, a company will find crude oil. This is also a valuable commodity as crude oil is needed to make petroleum based products as well as gasoline.

Oil and natural gas drilling can yield both natural gas or oil. Both are considered to be valuable natural resources that are a necessary part of life as they can be used for fuel for heating as well as use in gasoline to run cars.

Crude oil can be refined into gasoline by an oil refinery process. About 17 percent of a barrel of crude oil will be used for gasoline.

Oil drilling takes time as well as high powered equipment. Most investments of this nature are made by a group of investors who share in the costs, along with the oil company.

Both oil and gas drilling can yield profits for investors who invest in a company that drills in a proven well or finds a new well. Finding a new well during drilling yields very high profits for investors.

Drilling for natural gas as well as oil drilling are time consuming but can yield high profits for investors. Oil and natural gas drilling takes place in the United States as well as all over the world. Both oil and gas are natural resources that are used for a variety of different purposes, including heating fuel, petroleum products and gasoline. - 23223

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6 Things To Know About The Economy And Gas Prices

By Terry Stanfield

The economy and gas prices are very closely related to one another. The economic effects on gas prices can make the cost of gasoline rise or fall, depending on the economy. Gasoline supply and prices follow basic rules of economics in that when the supply is low and the demand is high, the prices go up. The price of gasoline as well as the supply can also effect the economy, making it a two way street. If the supply falls short, it can also have an adverse effect on the economy.

Gasoline prices are always fluctuating in accordance with supply and demand. To learn about how the economy effects gas prices, a person has to understand basic economic principles. Everything about the price of gasoline is dictated by the basic concept of supply and demand.

The first thing that someone needs to understand about gas prices is that when there is an increased demand for the product, it can effect the supply. When the supply of gasoline falls short of the demand, the price will jump.

When the economy is in trouble, people will hold off on taking trips and also will curtail going out and using fuel. This causes an increase in the supply of gasoline and causes the prices to drop.

The economy and gas prices are related to the effect that when the economy is doing well and people are using more fuel, the supply of gas goes down and the prices for gasoline start to rise.

Economic effects on gas can also go the other way. If there is a shortage of gas or oil, this can cause the prices of gas to skyrocket because the demand is stagnant while the supply is running low, which can negatively effect the economy.

There have been times in the past when gasoline supply and prices negatively impacted the economy. When the supply ran short, it effected the travel industry and also curtailed spending as people began to use less fuel.

A high supply of gas and low demand usually means a trouble economy. When no one is going out or traveling due to a poor economy, then the demand for gasoline drops, the supply goes up and the prices tend to drop.

The economy and gas prices tend to mirror one another. It is clear to see the economic effects on gas prices in recent times as the demand has dropped sharply, causing prices to plummet. Gasoline supply and prices can be an indication of the economic state of the country. - 23223

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FOREX, trading foreign currency

By Nate Volk



Trading is the center of FOREX market. It trades foreign currency, stocks, and similar types of products. In order to figure out the value of one country's currency, it has to be weighed against another country's currency. The determined value is an important factor in trading stocks on the Forex markets. There are countries that holds a huge control over other countries' currency or the value of the money. Banks, large businesses, governments and other financial institutions are involved in the world of Forex industry.

To make things clear, I will be pointing out the differences of Forex market and stock market. With Forex market, two countries are trading. This transaction can be done worldwide. For this procedure to succeed the countries should coordinate with an investor, and there should be country where the money would be invested in. The last component to complete the transaction would be the broker, where the Fores market are going to take place. One common broker that is utilized would be the bank.

What are the components that complete the FOREX markets? There is a variety of transactions and countries in any foreign exchange market. Most of the time, investors that are involved in Forex market trade in in large volume, meaning, they shell out huge sums of money. Also, these people who are into Forex trading are also into cash businesses, or in the trade of liquid assets that can be sold or bought quickly. In this kind of market, to say that its size is large would be an understatement. It's humongous, even larger than that of the stock market of any country. People who are really into FOREX market will be trading for twenty four seven. Sometimes, trading takes a week before it is completed.

It was the year 2004, when an amazing two trillion dollars was recorded as the average daily trading volume. This shows how many people are involved in Forex trading. Meaning, there's a lot of people who are investing their money in this market. Trillion of dollars in a day, multiply it by two, that's the amount of money people are actually changing hands each day.

Forex market is not a new discovery. It has been utilized for more than thirty years. The birth of computers and the Internet, sped-up the progress of Forex industry. In effects, more people can easily access this kind of service, enabling a lot of money to go through the market. As of now, FOREX only accounts a little over ten percent of the country's total trading. However, this number would definitely grow as its popularity skyrockets. - 23223

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Six Ways to Assess a Potential Oil and Gas Investment

By Terry Stanfield

When you look at oil and gas investing there are many ways you can look at the market and the potential investment. You should do plenty of research so you know you are making a good decision with your money. Here are 6 things you can look at to be sure you are about to make a good decision or you should back out.

1. The company. If you are looking into investing in a particular company you must look at everything about them. Check out the history of the company, the executives and board members, and the description of the business. It is also important when researching a business for oil investments to check out the locations and subsidiaries.

2. If recent mergers and acquisitions have occurred you need to research both of the businesses that have combined. Find out about all equity, ventures, and everything about the businesses involved.

3. Research the debt. Debt is a really big deal when it comes to gas investments. How much money does the company owe to other investors, banks, and others. The debt should be less than half of the revenues. This should include liabilities for the company also.

4. Competitors. When you are assessing oil and gas investing it is important to find out about the key competitors. Does the business have a foot forward in front of the other competitors?

5. The market placement. When you look at oil investments it is important to look at the entire market. You cannot just research the investment you are looking at but you need to be able to look at the overall prospect of the market. Where does the company you want to invest in sit with the entire market? You should compare numbers and feel the company is doing very well before you get started with your investment. Assess the strengths and weaknesses of the company of choice versus the competitors and see where they all stand.

6. Potential profits. If you invest in the company of choice what is the potential of profit you stand to make? You will need to look at the history of the gas investments and how much money other people made on the profits. Be sure a profit is what is being made and people are not just breaking even.

When it comes to oil and gas investing there are many ways to assess the investment. You need to look at the company as a whole. However, you also need to look at the entire industry, including the competitors, the products, profit, and more. - 23223

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