Limit Orders

This type of order has the broker enter or exit a position at a price you specify. The deal will only happen if that price can be attained. Limit orders let you know in advance the exact number you will buy or sell at, but brokers often charge higher fees than a standard trade so that can affect your bottom line.

Market Orders

These are the standard order that buys or sells the stock right then and there, at whatever the current price is. It is not guaranteed that you will get the price you just saw online or on television, but typically it will be close to that. These orders also typically carry the least amount of fees and transaction costs.

Stop Loss Orders

Designed to protect traders from drastic plunges, stop losses set a point below the current price that, if hit, will trigger an order to sell the position. If the stock increases, the stop loss does not come into play and you maintain your position.

Trailing Stop Orders

Similar to a stop loss, but sets the trigger in terms of percentage rather than a price point. This means these orders can be used to protect gains, because if the stock has a great upswing and subsequently falls by the percentage set in the order, a sale will be triggered and the gain will be realized.

Short Sell Order

These are bets that a stock will go down in price. With short orders, the trader is actually selling the stock and agreeing to buy the shares at a later date. If the price does in fact go down, the gain is the difference between the initial sale and the price when the trader buys back the shares to cover the trade. With penny stocks it can be difficult to short because the broker often lacks enough shares to lend traders in order to make the initial short sale. Many brokers also restrict short selling to stocks above a certain price, which can eliminate penny stocks.

When putting together a trading strategy, it is often the case that you must plan around the tools you can use. Stock market order types are a large part of your tools and when used correctly, can enable traders to let their winners run and cut losers short. It is important to know all restrictions and availabilities of your particular broker or platform in order to know exactly what can and cannot be done in any situation that arises.

MACD (Moving Average Convergence-Divergence)

Moving averages plot the average of a past number of days as time goes on, and MACD typically charts the difference between the value of a 12 and 26 day exponential moving average. This difference chart then has a 9 day moving average, or “signal” line, added on top of it, and the way they cross each other signals buy or sell opportunities. When the MACD crosses below the signal line it is a bearish sell signal, and when it crosses above the signal line, it is a buy signal.

Stochastics

These indicators track momentum by looking at where a stock closed in relation to its recent high-low range. The recent close is expressed as a percentage of the high-low range and this data is used to plot various indicator lines, known as %K and %D. Signals can be obtained in several ways, including by %K-%D crossovers, stochastic lines going outside the 20-80% threshold, or divergences between stochastics and the stock price chart.

Bollinger Bands

These “bands” are lines plotted two standard deviations above and below a simple moving average for a stock. Since standard deviations reflect recent volatility, the bands will move closer together towards the moving average when there is less volatility and farther away when there is move price action. Traders look for the price chart to move towards these bands as bullish or bearish signals. If the price moves towards the upper band, it indicates the stock is overbought and due for a drop, and price movement towards the lower band reflects the stock being oversold and ripe to buy.

RSI (Relative Strength Index)

This indicator looks at momentum of a stock based on the average of its gains in positive closes divided by the average amount of its losses on down days over a set number of days. This comparison of what amount it goes up by to the amount it normally goes down by yields an index of 1 to 100. If the index nears 70 or more it is a sign that the security could be overbought and ready to turn down. When the index goes towards 30, it is a bullish indicator that the stock could be undervalued.

Technical indicators are more useful with shorter term data and holding periods, as is typically the case with penny stocks. While it is important to get as much fundamental company information as possible, traders are dealing more in short term trends than year over year growth. Gathering as much knowledge and practice with technical indicators as possible sharpens the process of spotting trends and in the end, creates better traders.

Liquidity

One issue with the penny stock market is that liquidity is often a challenge. Since there is no formal exchange to trade on, it is difficult to know for sure that there will be a buyer or seller when you see an opportunity to take a position. Check penny stock communities online, talk to other traders, ask your broker or several brokers if there is any buzz about the particular stock. These sources will give you an idea of whether there has been any significant volume of trading for the stock that is likely to continue. Keep in mind that it will often not be the case with these small cap stocks, but when you find a relatively liquid one it is certainly a good sign.

Positive Press Releases

Since the information regarding companies behind penny stocks is limited compared to index listed companies, the press releases a company puts out are often a key information source and can swing the price of a stock. Look for patterns of positive events in the business development of the company through these press releases, such as growing sales, development of new products, possible acquisition news, and more. These press releases will often coincide with a significant upswing in the stock’s price.

Technical Indicators

There is a vast array of technical indicators that can be used to analyze the direction a stock is trending in. Learn the basics of moving averages and their crosses, and build from there. The more technical indicators you learn, the more angles you have to test against each other when analyzing a potential buy. Some other popular technicals include stochastic oscillators, MACD, RSI, and Bollinger Bands. Technical indicators are often used in combination to confirm a good stock pick once a buy signal is triggered.

Charts

In addition to technical indicators, there are many positives you can determine from the price chart itself, without further manipulation of the data. Learn common patterns to pick out and get an idea of what a chart will do. A predictable rolling pattern will often develop, and triangle chart patterns can tell you whether sellers are overpowering buyers or vice versa. When you see a chart pointing towards bullish price action, you know you are looking at a potential buy.

Success in the penny stock market is determined based on such small price moves that it is important for traders to use a multifaceted approach to their analysis. The better you get at using these tools, the earlier you will be able to spot trends to take advantage of, and your bottom line will be better off for it.

MANAGE YOUR RISK

Recent events have shown that effective risk management is a trick that not even the largest institutional traders have mastered. The irrational fear of having a losing trade is a phobia that afflicts many penny stock traders. Realistic traders understand that not every trade will be a winner. The key trick is to recognize your losers quickly and cut those stocks loose. Seasoned penny stock traders employ stop-loss systems to minimize their overall risk.

WATCH THE MARKET MAKER

Penny stock traders notoriously spin conspiracy theories relating to the activities of market makers. Many of these theories border on the insane, however, there is a kernel of truth to this line of thinking. Smart penny stock traders watch the price action for telltale signs that the market maker is poised to take the stock one way or the other. The ability to decipher these situations is a trick that can potentially yield obscene profits.

DON’T BE LONG ONLY

The vast majority of penny stock players are long only traders. This means that they only buy penny stocks, and they never short them. Some mistakenly think shorting stocks is unpatriotic, or even evil. There are situations that dictate going long a stock, and there are situations that portend a stock’s decline. Only playing one side of the equation greatly limits your opportunities. Taking advantage of short opportunities is an important trick for a good penny stock trader to have within their routine.

LISTEN TO THE CONFERENCE CALLS

The vast majority of losing penny stock traders do not follow the news and filings of the stocks they trade. Decent penny stock traders read the transcripts of company conference calls. Superior traders use the trick of finding the archived conference call and actually listening to it as opposed to relying upon the transcript. Hearing the CEO’s and other top executives’ voices often yields valuable insights. Actually listening to conference calls is time consuming, but this trick often can serve to either prevent a loss or maximize a gain.

BE A CONTRARIAN

Many penny stock traders go with the flow and follow the herd into crowded trades.  Seeing that the majority of penny stock traders are losers, logic dictates that one would want to go against the crowd. Learning to be contrarian is a penny stock trick that puts you in the minority — which most often represents the smart side of the trade. Learn to identify the signals of a crowded trade. These become evident when all of the so called pundits are touting a given stock and everyone thinks it is a “no-lose proposition.” Once you have identified this situation, go against the crowd.

USE THE RIGHT BROKER

When trading penny stocks, a good trick is to learn how not to be tricked by your broker.  Fees and commissions charged by brokers can be complex and confusing.  Some brokers charge an outrageous per-share trading fee, which translates to huge commissions for penny stock traders. Many pay these commissions unaware that less expensive alternatives exist. Check out this penny stock broker list at OTCPicks.com.

BE BEARISH UPON REVERSE SPLITS

Many stocks in the penny stock world attempt the neat trick of a reverse split. A reverse split is the same type event as a regular stock split, however, with a reverse split the amount of your shares decreases. Companies often use a reverse split as a last ditch effort to prop up share price or to reduce a bloated share count. Although the concept of “always” does not exist in the trading world, one can come quite close to saying that stocks “always” decline immediately subsequent to a reverse split. If you own a stock that announces a reverse split, you should sell it quickly. If possible, try to short stocks right after a reverse split occurs.

NEVER AVERAGE DOWN

Penny stock traders notoriously attempt to reduce their basis in a given position by averaging down. Avoiding this temptation is a required trick for penny stock trading success. Smart traders jettison losing positions quickly. Continuing to hold, and adding to, a losing penny stock position is a surefire recipe for failure. Smart traders bail on their losses and let their winners run.

DON’T BE A PIG

While it is smart to let your winners run, it is piggish not to take chips off the table during a positive run. The most frustrating occurrence is what traders call a “round trip” trade.  This is when you watch one of your penny stocks rocket upward without selling only to see it fall back down to where it came from — yielding you zero profits. Sell into runs up and pick a reasonable target where you will exit your position enjoying the fruits of the trade as opposed to watching them disappear.

DON’T BELIEVE THE HYPE

The management of a penny stock company is prone to put out enough press releases to wallpaper a house. Some smart traders have hypothesized that there is an inverse relationship between stock performance and the average number of press releases put out weekly by a company. The trick is not to be swept up by the hype and dive into a stock because the CEO says in a press release that he believes good things might happen in the future.

Those are just a few of the tricks or strategies employed by the top penny stock traders. Be sure to follow Penny Trader and OTCPicks.com as we continue to uncover the latest techniques and strategies to ensure your trading success.

Since early last year, gold has attacked the $1,000 per oz. price level numerous times, and now has succeeded in breaking through the $1,000 per oz. barrier handily.

Gold today (October 6th) rose to a record on speculation that inflation will accelerate and erode the value of the dollar, boosting the appeal of the precious metal for investors seeking to preserve their wealth.

Gold futures climbed as high as $1,042 an ounce in New York, topping the previous record of $1,033.90 in March 2008. The spot price headed for a ninth straight annual gain, the longest rally since at least 1948. The dollar fell as much as 0.6 percent against a basket of six major currencies.

“Gold has just begun its ascent,” said John Brynjolfsson, the chief investment officer of Armored Wolf LLC, a hedge fund in Aliso Viejo, California. “As central banks print more and more money, the private demand for gold as an investment and inflation hedge is destined to grow. It’s pretty clear that gold will be at $2,000 by 2012, and it could happen a lot faster.”

Technical analysis is always after the fact and it only tries to get insights from historical patterns and there is obviously no guarantee on anything. However, if this 40 year pattern holds and gold stays in the 4-digit territory for a month, the chance is very good that gold will never fall back to $1,000 level again on the monthly chart. This implication is huge, which means anyone who has bought gold before today below $1,000 will make a profit, a true safe haven.

One reason why gold has reached a new all-time high may be the fact that, for the last several weeks, Chinese state television has been openly promoting gold and silver as an investment and a store of wealth. Not long ago, the Chinese announced that they had been “secretly” buying gold – starting from 2003 they had bought over 600 metric tons of gold, bringing the gold to cash reserve ratio from 1.3% to 1.7%.

So does this recent run-up in gold signal a pending stock market correction? Probably not in the short term. In fact, while a correction may occur, the long-term record does not support the idea that gold rises predict stock declines. Most analysts believe that the value of the US dollar and gold are somewhat linked. So as the dollar declines gold rises typically but not so much the same thing for the overall stock market. Having said that, however, many analysts also believe that the markets are starting to become over-valued at this time. The markets have risen too far too fast relative to the pace of recovery in the global economy and it is likely that a significant correction in the markets is on the horizon at some point. When that will happen only time will tell. For now the markets seem robust and moving upward and onward.

Could gold go appreciably higher from here? With large hedge funds and central banks (such as the Russia and People’s Bank of China) diversifying into physical bullion, investment demand remains as robust as ever and looks set to overpower the significant decline in jewelry demand and demand from the Indian subcontinent. The United Nations UNCTAD report warning that the “economic winter” was not over and calling for a new global reserve currency may have led to some buying also.

“Even though the current inflation rate is low, the risk of a blowup in inflation in the future is becoming higher all the time,” said Adam Farthing, Deutsche Bank AG’s head of metals trading in Asia. “Gold is pricing that in.” Farthing projected the metal will reach $1,150 by the end of the year. “There’s definitely switching going on out of energy and agricultural commodities into gold,” Farthing said.

In addition to the bullion looking poised to move higher, we feel there are many opportunities in gold stocks as well. We have highlighted a few of our favorites below:

Gold Stocks To Put on Your Radar:

American Sierra Gold (AMNP) – American Sierra is an American gold exploration company headquartered in Nevada, the heart of American gold country and sits a few miles south of a mine currently producing 200,000 ounces of gold a year.

Aurizon Mines Ltd (AZK) – Canadian gold mining company engaged in the exploration and development of mineral properties in Quebec, Canada.

Northgate Minerals Corp (NXG) - Canadian company engaged in mining and exploration of gold and copper properties in Canada and Australia.

Richmont Mines (RIC) - engages in the exploration for, and acquisition, development, and production of gold in North America.

Nova Gold Resources (NG) - engages in the exploration and development of mineral properties in Alaska and British Columbia. The company primarily explores for gold, silver, copper, zinc, and lead ores.

Vista Gold Corp (VGZ) - engages in the evaluation, acquisition, exploration, and advancement of gold exploration and potential development projects in North America, Australia, and Indonesia

Barrick Gold Corp. (ABX) - primarily engages in the exploration, development, production, and sale of gold worldwide. It also produces copper and silver; holds interests in a platinum group metals development project and a nickel development project; and has interests in oil and gas properties

Golden Star Resources (GSS) - is an international gold mining and exploration company that produces gold in Ghana, West Africa owning a controlling interest in four significant gold properties in southern Ghana.

Newmont Mining Corporation (NEM) - is primarily a gold producer with significant assets or operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico.

Keegan Resources, Inc. (KGN) - is a junior gold company and owns properties including the Esaase Gold Property and Asumura Gold Project in southwest Ghana, West Africa.

Banro Corporation (BAA) - is a Canada-based gold exploration and development company. The Company holds, through four wholly owned Democratic Republic of the Congo (DRC) subsidiaries, a 100% interest in four gold properties, which are known as Twangiza, Namoya, Lugushwa and Kamituga.

In addition, we noticed that the price of copper, a principal component used in home construction was surging in price and that its multi-month high suggested that demand by home builders could be growing.

So where are we now? Well…we are pleased to report that PennyTrader members who followed our lead have certainly outperformed the broader market. In fact, the Philadelphia Housing Index, the very same index we referenced back in April at $79.89, recently reached a nearly a 10 month high at $102.75—nearly 29% since our original report.

And where do we go from here? From a technical perspective, we believe the $HGX, a useful proxy for all the homebuilding stocks, is in the process of completing a very bullish “reverse head-and –shoulders bottom.” In fact, this next leg of the pattern is likely to be extremely profitable as the index retests the $150 resistance level from last fall.

From a fundamental perspective, the data released in the month of July was almost universally positive. New homes sales jumped 11%, inventories have continued on a downward trend, mortgage rates have remained at low levels, and existing home sales climbed for the third straight month. Even house prices as measured by the Case-Shiller Index showed the first month increase since their peak in 2006. The only negative in any of the recent housing reports is the fact that foreclosures remain at elevated levels.

Housing Related Stocks:

We continue to see value in the following names and believe members should keep them on their radar…

D.R. Horton (DHI) – primarily markets its homes to first-time buyers, as well as first-move-up customers. DHI sees a majority of its revenues from Midwestern operations; this area was generally less prone to bubble-type market conditions compared to areas in the Southeast, Southwest, and West.

KB Home (KBH) — aims at targeting more entry-level homebuyers. We believe that KBH has been more conservative in terms of loading up on pricey land, and more aggressive in moving units; both positives. KBH also has exposure to the French market with operations in that country, which will provide much needed market diversity to help the company weather the current downturn

NVR (NVR) — is the most conservative homebuilder in terms of how it handles investments in land. NVR exclusively uses options to purchase land and only takes possession when it is ready to develop. NVR is also unique in that it has more cash than debt.

Ryland (RYL) – looks to be one of the better prepared builders with low debt levels and low levels of land inventory. The company should also benefit from having negotiated most of its land and options in 2004 and prior.

Toll Brothers (TOL) — maintains the largest land bank in the residential construction industry by a wide margin, with estimates placing land reserves equal to six years of construction. TOL’s market position should allow it to expense more expensive land acquired in recent years over a period of time, allowing the company to maintain its normally high gross margins.-Because TOL focuses on the high-end segment of the housing market, the company should also prove to be more resilient to credit tightening or regulation, as its customers are less dependent on generous financing terms.

We also think that members should add these additional names to their radars…

MDC Holdings (MDC) — reported a gain in new orders last quarter for the first time since 2005

Weyerhaeuser (WY) – CEO Dan Fulton said he is “feeling like the worst is over in housing,” though adding that low consumer confidence and high unemployment leave him cautious on the timing of a recovery.

Pulte Home (PHM) — The company’s homebuilding business involves in the acquisition and development of land for residential purposes within the continental United States; and the construction of housing on such land for the first-time, first and second move-up, and active adult home buyers.

Probably the biggest positive we hope for from stabilization in housing is that the industry stops being a drag on the economy. “Private investment in the residential” sector is a key contributor to the GDP calculation. The GDP reading just released on Friday showed that the housing market contributed negatively to the U.S. economy for the 14th consecutive quarter. This sector shaved almost a whole percentage point off of economic growth; in a quarter where the reading was a negative 1.0%. Thus, while numbers from the housing sectors are beginning to improve, the net effect is still a bit of a drag on the economy.

Most industry experts have said that the sectors that led us into this recession will be the sectors that lead us out and we believe this to be true. Banking and Real Estate began things, and both are starting to show signs of stabilizing and the early stages of recovery and we stress the “Early Stages” part. Still time to get a piece of some nice turnaround stocks that can make our members money as the recovery continues into 2010 and 2011.

As more boomers approach retirement, forecasters expect a huge bump up in certain kinds of expenditures. Two that should see the biggest jump are Health care and Travel/Leisure stocks

National health-care spending is estimated to increase as a percentage of GDP by 22 percent over the next 10 years. For that the health-care industry can thank the boomers, who are just beginning to enter the time of their lives when drug, hospital and other expenditures rise dramatically. In fact, it is estimated that people 50 and older will account for more than half of all health-care spending.

Picking winning companies here isn’t as easy as it might appear. With power in numbers, the boomers could put pressure on prices, making new medical developments less profitable for some companies.

However, there are several healthcare and Leisure stocks we think OTCPicks members should add to their radar as shown below:

List of Healthcare Stocks to watch for:

Celgene Corp . (CELG) — Celgene is a multinational biopharmaceutical company focusing on the discovery, the development, and the commercialization of products for the treatment of cancer and other severe, immune, inflammatory conditions.

Varien Medical Systems Inc. (VAR) — Varian Medical Systems is the world’s leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy, and brachytherapy

Teva Pharmaceuticals (TEVA) – Teva Pharmaceutical Industries Ltd. is a global pharmaceutical company specializing in the development, production and marketing of generic and proprietary branded pharmaceuticals as well as active pharmaceutical ingredients

Allergan Inc. (AGN) — Allergan, Inc., a multi-specialty healthcare company, discovers, develops, and commercializes specialty pharmaceutical, medical device, and over-the-counter products for the ophthalmic, neurological, medical aesthetics, medical dermatological, breast aesthetics, obesity intervention, urological, and other specialty markets

UnitedHealth Group Inc. (UNH) –UnitedHealth Group Incorporated provides healthcare services in the United States

Walgreen Comp. (WAG) –Walgreen Co. operates a chain of drugstores in the United States. These drugstores sell prescription and non-prescription drugs, and general merchandise.

Stericycle (SRCL) — It offers institutional regulated waste management services, Bio Systems sharps management services to reduce the risk of needle sticks, various products and services for infection control, and regulated returns management services for expired or recalled healthcare products

Hartford Financial Services Group (HIG) –The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services in the United States and internationally

Amgen (AMGN) – The company has a dominant position in the cancer marketplace thanks to two drugs that alleviate side effects caused by other therapies, including chemotherapy.

Travel and Leisure Stocks to watch for:

So where do forecasters see baby-boomers heading for fun in their Golden years? Casinos, Hotels and Cruises top the list. Not only that, but it was recently reported that travelers ages 55 to 64 spend 40 percent more on average than other age groups. Some of the most attractive companies in the travel and leisure space include:

Penn National Gaming (PENN) – Penn National Gaming, Inc. and subsidiaries engage in the ownership and operation of gaming and pari-mutuel properties in the United States

Wyndham Worldwide Corp. (WYN) — Wyndam Worldwide Corp. includes hotels, vacation ownership, and vacation rental and exchange.

Starwood Hotels & Resorts (HOT) — company primarily operates luxury and upscale full service hotels, retreats, and residences

Carnival Corp. (CCL) — Carnival Corporation operates as a cruise and vacation company. It also markets and operates hotels or lodges in Alaska and the Yukon Territory of Canada.

Royal Caribbean Cruises Ltd. (RCL) — Royal Caribbean Cruises Ltd. operates in cruise vacation industry in North America and internationally.

Finally, many members that are concerned that a baby-boomer sell-off would hurt the stock market overall should understand that that Baby Boomers’ direct holdings in U.S. equities are a fairly small chunk of all shares outstanding. In fact, about 50 percent of all equities are held by institutional investors, including mutual funds, pension funds, insurance companies and other financial institutions. These funds have a very long time horizon. Even if they’re paying out pension benefits to Boomers, those payments are based on long-term projections of investment returns. So it’s not likely those portfolios will be dumping stock just because Boomers are retiring.

In the coming months and years, either a “Cap and Trade” system or a straight up carbon tax will be likely be passed by U.S. legistators. The moderates in Congress and most of the heavy industrial world, faced with the reality of some type of legislation, are rallying behind a carbon tax for its simplicity and for the fact that the cost can be passed along to the consumer much more efficiently and without the distortion and potential fraud of a cap and trade system.

The U.S. House of Representatives approved legislation on June 26 that would place caps on U.S. greenhouse gas emissions and sets nationals standard for the production of renewable electricity by 2020. The American Clean Energy and Security Act (H.R. 2454) would cut U.S. greenhouse gas emissions by 17% by 2020, from 2005 levels, and by 83% by 2050.

While much of the focus on reducing greenhouse gas emissions will be on the development of next generation renewable energy resources, natural gas can and will play a significant role in this evolving story. Natural gas per BTU of energy is much cleaner than oil or coal, the two primary fossil fuel alternatives, and thanks to new drilling technologies that are unlocking substantial amounts of natural gas from shale rocks, the nation’s estimated natural gas reserves have surged by 35 percent according to new studies.

So, if a carbon tax or a Cap and Trade system is ultimately put into place by U.S. legislators, natural gas will likely be a huge beneficiary. Natural gas could emerge as a critical transition fuel that could help to battle global warming. For a given amount of heat energy, burning gas produces about half as much carbon dioxide, the main cause of global warming, as burning coal.

Industrial demand accounts for about 30 percent of natural gas consumption annually in the U.S. Thus, economic health of US industry directly influences natural gas prices in a significant way. During the past year, as world economies have struggled through the worst recession in the last 80 years, natural gas prices have been hovering near six year lows in the range of $3.50 per MMBtu. Domestic production has remained strong and recent gas producer’s quarterly earnings indicate that economic activity is beginning to recover as industrial demand starts to pick back up. This should strengthen natural gas prices in the short term, and in the longer term the move toward cleaner energy solutions should put natural gas squarely in the middle between dirty fossil fuels and clean renewable energy solutions.

Natural gas promises to be used as a transitional fuel to alternative to renewable energies like solar, wind and geothermal. Even influential oil-tycoon T Boone Pickens has proposed, and spent a considerable portion of his wealth, promoting the idea of natural gas powered vehicles.

Once fuel cell powered vehicles become practical, within 10 years with government encouragement /subsidy, natural gas is likely to be among the first fuels used by such vehicles. This reality will be encouraged if Pickens is successful in getting existing fuel stations in North America to add natural gas to their product offerings at the pump. Time will tell if that infrastructure will get built into our national transportation fuel system and if you will be able to buy and utilize natural gas powered vehicles. Natural Gas is already in use in many public transportation systems and municipal fleets.

While pure hydrogen vehicles may be a better environmental option (since the byproduct of the chemical reaction is pure water), the manufacture, storage and distribution of highly combustible hydrogen has many science, engineering and production problems that have yet to be solved. So keep a close eye on natural gas prices for possibly higher prices in the near-term as well as the longer-term. As the economy rebounds we think that natural gas prices will rise as industrial consumption picks back up and in the longer term we think that natural gas will be a key ingredient in the mix to reduce greenhouse gas emissions.

We have compiled a list of stocks to add to your radar that are highly levered to the price of natural gas that might be worthy of your investment consideration as follows:

List of Natural Gas Related Stocks

We have compiled a list of stocks to add to your radar that are highly levered to the price of natural gas.

EXCO Resources, Inc. (XCO)– an independent oil and natural gas company, engages in the acquisition, development, and exploitation of onshore oil and natural gas properties. Its operations are focused on the North American oil and natural gas areas, including the east Texas/North Louisiana.

Gasco Energy, Inc. (GSX) – operates as a natural gas and petroleum exploitation, development, and production company. The company engages in locating and developing hydrocarbon resources primarily in the Rocky Mountain region. It acquires leasehold interests in petroleum and natural gas rights, and exploits and develops properties subject to those leases. Gasco Energy focuses on drilling efforts in the Riverbend project located in the Uinta Basin of northeastern Utah.

Anadarko (APC) – engages in the exploration and production of oil and gas properties primarily in the United States, the deepwater of the Gulf of Mexico, and Algeria. The company markets natural gas, crude oil, condensate, and oil and natural gas liquids (NGLs), as well as owns and operates natural gas gathering, treating, and processing systems.

Chesapeake (CHK) — an oil and natural gas exploration and production company, engages in the acquisition, exploration, and development of properties for the production of crude oil and natural gas from underground reservoirs. It also provides marketing and midstream services for natural gas and oil for other working interest owners in properties it operate.

XTO Energy, Inc. (XTO) — together with its subsidiaries, engages in the acquisition, development, exploitation, and exploration of producing oil and gas properties in the United States. It also engages in the production, processing, marketing, and transportation of oil and natural gas.

Southwest Energy (SWN) – engages in the exploration, development, and production of natural gas and crude oil in the United States. The company operates in two segments, Exploration and Production, and Midstream Services. The Exploration and Production segment involves in the development of the unconventional gas reservoir located on the Arkansas side of the Arkoma Basin, as well as exploration and production activities in Oklahoma, Texas, and Pennsylvania.

Penn West Energy Trust (PWE) — an open-ended, unincorporated investment trust, engages in acquiring, developing, exploiting, and holding interests in petroleum and natural gas properties and assets. Its properties are located in the provinces of Alberta, British Columbia, Saskatchewan and Manitoba, and in the Northwest Territories in Canada, as well as in Montana, Wyoming, and North Dakota in the United States.

Pengrowth Energy Trust (PGH) – through its subsidiary, Pengrowth Corporation, engages in the acquisition, ownership, and operation of working interests and royalty interests in oil and natural gas properties in Canada.

Proponents make the following points….

• The number of uninsured citizens has grown to over 40 million

• Health care has become increasingly unaffordable for businesses and individuals

• We can eliminate wasteful inefficiencies such as duplicate paper work, claim approval, insurance submission, etc.

• Free medical services would encourage patients to practice preventive medicine and inquire about problems early when treatment will be light; currently, patients often avoid physicals and other preventive measures because of the costs.

At the same time, opponents argue…

• There isn’t a single government agency or division that runs efficiently; do we really want an organization that developed the U.S. Tax Code handling something as complex as health care?

• “Free” health care isn’t really free since we must pay for it with taxes; expenses for health care would have to be paid for with higher taxes or spending cuts in other areas such as defense, education, etc.

• Profit motives, competition, and individual ingenuity have always led to greater cost control and effectiveness.

• Government-controlled health care would lead to a decrease in patient flexibility.

• Just because Americans are uninsured doesn’t mean they can’t receive health care; nonprofits and government-run hospitals provide services to those who don’t have insurance, and it is illegal to refuse emergency medical service because of a lack of insurance.

• Government-mandated procedures will likely reduce doctor flexibility and lead to poor patient care.

• Patients aren’t likely to curb their drug costs and doctor visits if health care is free; thus, total costs will be several times what they are now.

• Just because Americans are uninsured doesn’t mean they can’t receive health care; nonprofits and government-run hospitals provide services to those who don’t have insurance, and it is illegal to refuse emergency medical service because of a lack of insurance.

• Government-mandated procedures will likely reduce doctor flexibility and lead to poor patient care.

• Healthy people who take care of themselves will have to pay for the burden of those who smoke, are obese, etc.

• A long, painful transition will have to take place involving lost insurance industry jobs, business closures, and new patient record creation.

• Loss of private practice options and possible reduced pay may dissuade many would-be doctors from pursuing the profession.

• Malpractice lawsuit costs, which are already sky-high, could further explode since universal care may expose the government to legal liability, and the possibility to sue someone with deep pockets usually invites more lawsuits.

• Government is more likely to pass additional restrictions or increase taxes on smoking, fast food, etc., leading to a further loss of personal freedoms.

• Patient confidentiality is likely to be compromised since centralized health information will likely be maintained by the government.

• Health care equipment, drugs, and services may end up being rationed by the government. In other words, politics, lifestyle of patients, and philosophical differences of those in power, could determine who gets what.

• Like social security, any government benefit eventually is taken as a “right” by the public, meaning that it’s politically near impossible to remove or curtail it later on when costs get out of control.

Whether the healthcare bill passes or fails, we at PennyTrader.com are dedicated to helping our members make money. In fact, we have compiled a list of stocks we think could benefit from its passage. And at the same time, we have provided a list of stocks we think members should add to their radars if the bill fails.

Related Stocks to Watch

If the Healthcare Bill passes…

Teva Pharmaceuticals (TEVA) – engages in the development, production, and sale of a range of generic and branded pharmaceuticals, biogenerics, and active pharmaceutical ingredients (APIs) worldwide. Its research and development efforts focus on therapies for the central nervous system (with emphasis on multiple sclerosis), autoimmune diseases, and oncology.

Watson Pharmaceuticals (WPI) – is a specialty pharmaceutical company that engages in the development, manufacture, marketing, sale, and distribution of generic and brand pharmaceutical products primarily in the United States. The company’s products are used in various therapeutic areas, including central nervous system, hormones and synthetic substitutes, cardiovascular, nephrology, gastrointestinal, and other areas.

Genzyme (GENZ) – operates as a biotechnology company worldwide. The company’s Genetic Diseases segment manufactures and distributes therapeutic products, including Cerezyme as an enzyme replacement therapy for the treatment of Type 1 and Type 3 Gaucher diseases; Fabrazyme, a recombinant form of the human enzyme alpha- galactosidase for the treatment of Fabry disease; Myozyme as a therapy for Pompe disease; and Aldurazyme for the treatment of Mucopolysaccharidosis I.

Quality Systems (QSII) – is in the development and marketing of healthcare information systems in the United States. Its system automates various aspects of medical and dental practices, as well as networks of practices, such as physician hospital organizations and management service organizations, ambulatory care centers, community health centers, and medical and dental schools. The company offers proprietary electronic medical records software and practice management systems.

And if the Healthcare Bill fails…

Johnson and Johnson (JNJ) – engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Its Consumer segment provides products used in baby care, skin care, oral care, wound care, and women’s health care fields, as well as nutritional and over-the-counter pharmaceutical products

Cigna (CI) – provides health care and related benefits in the United States and internationally. It operates in five segments: Health Care, Disability and Life, International, Run-off Reinsurance, and Other Operations.

Humana (HUM) – provides various health and supplemental benefit plans for employer groups, government benefit programs, and individuals in the United States. The company operates in two segments, Government and Commercial.

Amedisys (AMED) — provides home health and hospice services to the chronic, co-morbid, and aging American population. Its home health services include skilled nursing and home health aide services; physical, occupational, and speech therapy; and medically oriented social work to eligible individuals who require ongoing care

It is this small corporate structure which results in the potential for huge gains. Often a small penny stock will see its stock soar after a big contract has been signed, or new partners announced. Any small shift in business can result in multiple increases in revenue for a small company, this is reflected in the stock price. News is in many cases a driving factor for fast rises in penny stock prices and jumps in trading volumes.

The opposite is also true, if a small penny stock company loses a deal, or is hit by a hard quarter, the damage to the balance sheet could send the stock dropping fast. Again, investors should be aware that news is a sizeable factor in the rapid declines in penny stocks.

Day Trading Hot Penny Stocks

Trading penny stocks can be very profitable but it is not for the faint of heart. The stock market doesn’t care if you are experienced or a stock trading newbie. The rules and the trading opportunities are the same for everyone at any time, so either you’re going to make money when you make a trade or you are going to lose some of it to other stock traders. As a penny stock trader your homework is all about studying and testing different online trading strategies that can help you pick and take advantage of hot penny stocks and at the same time protect your gains. Just always keep in mind that a good penny stock trading system is simple and practical.

Complicated stock trading systems can slow down your decision making process or it can be confusing. There are some very good small cap and penny stock trading information websites where you can access practical online trading strategies that are easy to implement. Also there are sites that provide investor awareness programs for penny stocks that can supply more information on companies as part of your research and due diligence efforts. Most focus on short term stock trading tactics that can help you pick and trade hot nano cap, micro cap stocks and small cap stocks trading on the Nasdaq OTC exchanges.

Many penny stock traders are engaged in what is known as Momentum Trading. Momentum Traders look to find stocks that are moving significantly in one direction on high volume and try to jump on board to ride the momentum train to a desired profit.

All in all, penny stock trading is all about trying to choose among the best stock opportunities and following your online trading plan with ease and simplicity. Once you begin to master your stock trading decisions, you can begin to produce consistent and profitable trading results.