Make Money 101: Believe the Hype, You Can Still Retire Early

2011 is quickly coming to an end. With only 6 weeks left and the holidays in full swing, it’s a good time to review how your YTD investments performed and what opportunities were missed. Was it a “money flowing like champagne” year for you or were you cutting coupons to save a few pennies?

Most people don’t want to check their monthly statements or even check the value of their online trading accounts with all the bad news the market has dished out over the last 18 months. With dwindling spare cash available, investors, and those who want to invest, tend to feel overwhelmed when it comes to trading stocks due to the intense costs involved.

People think that investing in the stock market requires thousands of dollars to get started and then have no idea of what to invest in. This common misconception of investing in the stock market is nothing more than a myth as it can actually cost next to nothing to get started when trading online in penny stocks.

Penny stocks are usually not listed at the major stock exchanges like the NYSE or the NASDAQ because they don’t meet the listing requirements since listed stocks must have a minimum number of shareholders, minimum assets and file financial reports regularly. Penny stocks are also under the strong supervision of the SEC, the Securities and Exchange Commission.

Stocks usually are excellent investment vehicles since they don’t fluctuate much within a short time span. An investor is usually looking at 0.3% variation on average. This is exactly what an investor wants to hear as it allows them to manage their investments with much more freedom and less time involved.

Stock investing can really get your blood pressure rising if you haven’t adopted the right trading approach. Making profit isn’t that easy on NYSE and NASDAQ stocks, but investors can certainly ease out portions of their worries if they learn about the best penny stocks in business. Investing in stocks requires an immense amount research and inspection as the average investor usually banks up on stocks to bail them out of trouble.

One of the greatest advantages of stock investing is that it allows relatively new investors a learning curve on how to invest upon markets without over committing. Other than emerging financial markets, investors always bank up on stocks to strengthen their financial position. This is why it’s crucial to rely upon hot penny stocks for enhanced profit margins.

Next time you see a penny in the parking lot, don’t run over it. Pick it up!

Then pick up some information on penny stock trading and you could multiply that penny by doing some penny stock trading. The best thing to do before trading penny stocks is find an online broker you can work with. You’ll find several online brokers who offer penny stock trading that can help you make the best decisions. By selecting the correct online broker for penny stock trading, you may find that you’re able to make some reliable profits from trading.

Penny stocks are usually bought in large numbers due to their low prices. Therefore, penny stock traders can get more bangs for each buck invested as the theory works on average bucks. Losing out on heaps of dollars can happen also. Knowing what the best penny stocks are in the market today is crucial. That can only happen when traders keenly follow multiple penny stocks at a single go. Following penny stocks has become easy thanks to the wide spread use of internet. From day to day trading behaviors to monthly fluctuations, penny stock traders can get up-to-the-minute quotes and graphs on what’s happening on the latest hot penny stocks with the click of a button.

Investors tend not to believe in bulk purchases and would rather make investments on high value stocks. Typically, they wouldn’t be too keen to trade with even the very best penny stocks. With this in mind, if enhancing profit margins is your top priority, penny stocks are the ideal investment vehicles since it allows traders to study the market in a far more convincing manner. Besides, the internet too can be immensely helpful towards traders especially with the number of trading tip based websites on exhibit. Investors can easily subscribe with websites for the very best tips on stocks.

Is it really possible for people to make a profit using Penny Stocks, even become millionaires?

Certainly there are some penny stock traders who make huge amounts of money with penny stocks. Even ordinary people who trade in their free time, perhaps as a hobby rather than as a professional trader, do also. It is very easy to use penny stocks to start with and then eventually move up to other, potentially more profitable stocks, using larger sums of money once they feel more experienced and have more money to invest. The question then becomes: How do you start making profits quickly in penny stocks with the least amount of risk?

Before answering that question, let’s define what we mean by penny stocks. In general, the phrase “penny stock” refers to low priced, highly speculative stocks, which typically sell at less than $1 per share. They can be very volatile and can increase and decrease hundreds of percentage points in minutes, sometimes as much as 400%. This can be dangerous but can also be extremely profitable.

How can I work out what to trade and when to maximize my profits?

Typically only after you have made a number of trades in penny stocks using small low risk sums can you even think about making the type of trades you need to make the big money. In many cases, penny stock traders simply have to put in the hours, weeks, months and years to become experienced in the market. Even then and only after trading several times, analyzing the trends and results over a long period, can a penny stock trader say he/she really understands trading penny stocks. Even then he/she will still lose on many trades.

There are many shortcuts available to profiting on penny stocks. There are many ways to help you identify trends and profitable opportunities as they happen by using designed software. There are huge problems with most of them. The main problem is that any system that relies on analyzing historical trends takes time and effort. However, there are far better solutions.

As with all stock trading, particularly in volatile penny stock market, not every decision will be correct. Even software cannot predict every possibility. Yet on average, software is reported to create gains of 105.28% per week even accounting for the trade recommendations which do not work out. Therefore, if someone had put $5,000 on each of the recommended penny stock trades over a 4 month period, they would have made $387,684 in profit. However, it never works out that way while using software sytems to pick penny stocks.

One of the best types of penny stock trading software is your email. Putting yourself on an email list is the fastest and surest way of getting information when it becomes readily available. You’ll receive tips from these penny stock lists on the best performing stocks allowing you to promptly invest in them if you choose them worthy.

What you need to remember though is that others penny stock investors are receiving those same tips. Much of the success that comes with using penny stock email alerts to find the best penny stocks depends much on your timing when buying and selling as much as it depends on the advice you receive about which penny stocks to purchase.

If you’re seriously looking to make some reliable profits from the stock market, it is possible to make a considerable amount of money on penny stocks trading. Knowing when to buy and sell is the second most essential tool to maximize your profits. Being analytical, technical, or downright greedy is the easiest way to minimize profits and, sometimes, even lose your entire investment. You need to have a firm and regimented strategy to accomplish your goal of maximizing profits while minimizing risks.

Online penny stock trading normally has a few basic skills which need honing in order to increase the potential profits. Unlike regular stocks, online penny stock trading has much less investors per company. For example, most regular stocks have people buying and selling them all day long from all over the planet. With online penny stock trading, there may only be a few purchases every now and again unless someone has created public awareness of a company via an “alert”.

Before you start saying you’re not investing ever again due to the recession we’re in or that the stock market is boring with big stocks moving up 1% in a day, let us introduce you to some under-followed penny stocks. They’re nothing like the big boring blue chips yet still offer some of the best returns on the market.

That’s a starting point.

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