Stock Investing

Penny Stock Prophet - Just How Excellent Is this Item

2011-07-26T19:00:00.000-07:00

I received seven men and women who i have previously worked with on jobs and each of them ordered this as i wished to see seriously how properly it definitely does operate. Not only for me, but for a small group of pretty random men and women, just about every which has a passion and interest for compact investments.

Anyway i've to admit, the outcomes that i started to see right after just days was quite staggering. In fact it absolutely was unbelievable. We didnt quite go from $1,000 to $1 million, but as a substitute we averaged likely from $100 to $5,100 in four weeks.

Its important right here to say this can be the typical that was taken over the four week time period. Everybody built profit, the cheapest was immediately after four weeks up by $317. The best was at a huge $27,565

Ok so thats the data aspect of this critique through with, now i shall just commit several moments and detail the advantages and disadvantages of the Penny Stock Prophet.

The Pros: Just set the positives of this solution is it delivers what it offers you. It gives a really easy and straight forward discovering curve. Due to the way the content is laid out, its the proper product or service for individuals who are new to penny stocks to begin with.

The Cons: Regardless of what we have set previously mentioned, there are several fairly large cons to this software. 1 will be the charge. Although $97 is not significantly for this product, its however alot of money for an preliminary expense and for that purpose i would only advise people to purchase this should they be willing to consider action, find out and make investments within their schooling.

I cant definitely try this justice, its a terrific product or service and one that i'd definatly endorse at the least perusing much more information about. Just take a check out what the web site gives and see if the still intrigued, it's some wonderful sources to suit your needs inside of. Just one word or suggestions to get the very best out of this outstanding merchandise - Go through each of the documentation that comes with it, i invested 2 several hours looking at ahead of i permit myself unfastened. I am aware it could possibly seem to be trivial, nonetheless people initial 2 several hours are classified as the difference involving breaking even and making some critical cash.

See how start stock trading very cheap stocks successfully having James Connelly and skim our 100 % customer writeup on this Penny Stock Prophet.

penny stock prophet

Active vs Passive Managed investment

2010-01-28T09:27:00.000-08:00

There are two main categories of investment management: passive or active. Most retirement plans such as IRA, Roth IRA and 401K are either actively or passively managed.

Actively managed investments are basically managed by a portfolio manager. The portfolio manager and other analysts conduct research on the holding securities that compose the portfolio. Based on the research, the manager buys and sells securities within the portfolio in order to produce higher returns or outperform the benchmark index. Index is a way of measuring the market’s performance by tracking a particular group of investment that represents a market.

While passively managed investments, or often called Index investments, are not entirely managed. In order to reduce costs, such as taxes and fees the portfolio manager and analyst rather follow the standard S&P 500 benchmark and make as few trades as possible. Their goal is to follow the benchmark index as close as possible, not to outperform it. As a result, a passively managed portfolio goes in the same direction as the Standard and Poor Markets. For example, if the S&P 500 is heading downward in the market so is the passive portfolio.

As a benefit, the managed portfolio is more likely to outperform the S&P 500 index than the passive portfolio. As a negative, the fees of an active managed portfolio are higher than of a passively managed portfolio.

Using ROC as momentum indicator

2009-11-19T09:21:00.000-08:00

What does ROC stand for? And how you can use it to determine the price momentum of a stock?
ROC stands for “rate of change”. It is used to predict if the stock price of a security will go up or down. If the ROC calculated is greater than 0 the stock price will go up. If the ROC is less than 0 (negative) then the stock will head down. The formula used for ROC is:

ROC = (x - y) / y in n days interval.

Where:
x is the last closing price of the stock,
y is the past closing price.
n is the interval in number of days.

Usually, as a rule of thumb, short term investors use an n number between 15 to 50 days and long term investors use between 26 to 52 weeks.
As an example, let us look at the stock apple (AAPL). The last closing price was 204.45 and 15 days ago the closing price was 196.35
That is: x = 204.45; y = 196.35; n = 15 days
Plug in the formula and you get:
ROC = (204.45-196.35) / 196.35 = 0.04
Therefore, ROC is greater than 0, implying the stock price is heading upward for a short period of time since we used a 15-day interval. If the old closing price is equal to the present closing price then the ROC is said to be at equilibrium and also equal to 0.
It is recommended to use ROC with other chart pattern techniques before making a final decision

Trailing stop

2009-11-02T10:14:00.000-08:00

Trailing stop is a type of automated order. You can initiate a sell or buy trailing stop. Trailing stop is mostly used for investors who do not have time to trade everyday or for investors who hold a long term position on a security. It allows the investors to limit their loss without compromise their chances on gaining. The trailing stop works by specifying a trail amount while placing your sell or buy order. Then that trail number will automatically follow the current market price until the price goes down and become equal to the sell trail amount. Your order is then activated to be executed at the current available market price by your stockbroker.
Let us look at a typical example: an investor bought 100 shares of stock ABC at $20 and then the stock went up to $30 a share. Since the investor wants to make sure that he or she keeps the maximum profit, the investor therefore puts a trailing stop order with a trail of $2 and a sell of $28. That means, he wants to sell no less than $2 off the current market price. If the stock price keeps going up the trail number keeps on following it. Let us assume the price now is at $35 then the trail price for selling would be $35- $2 = $33.
It is the same way for a buy trailing order but in the reverse. If the stock price goes down the trail amount moves down along with it until the stock price starts to rise and hit the trail number. Then a buy order will be executed.
In summary, always remember that the trailing stop number for a sell order will only follow the stock price if it goes up. If the stock comes down and hits the trail number then a sell order is activated.
NB: Most brokers do not allowed trailing stop orders of less than 100 shares to be submitted.

Stop order vs Stop Limit order

2009-10-22T10:12:00.000-07:00

What is the difference between a sell stop and a sell stop limit order?

Sell stop orders are used to protect your profit from loss. It could be either a sell stop order or a sell stop limit order. A sell stop order is similar to a market order. When you place a sell stop order you tell the stockbroker to sell your securities at the current market price. That means it is unrestricted. For example, an investor bought stock ABC at a price of $20 and then the price went up to $30. To protect his gain the investor therefore puts a stop price at $25. If the price of the stock goes to $25 or below, his order will be activated. It then will be executed around $25, depending if the stock is volatile or not. Again, the $25 sell stop order determines when your order will become active; it does not mean it will be executed at exactly $25. It could be executed at a lower or higher price, since it is similar to a market order.

A sell stop limit order is when you specify to your broker an interval price to sell your securities. The order is always placed below the present market price. A sell stop limit order requires you to specify a stop price and a limit price. For example, a trader bought a stock at a price of $20 and now the stock is trading on the market at $30. To secure his profit he would put a sell stop limit order as follow: a stop at $28 and a limit at $25. When the stock goes to or below $28 the order is activated as a sell limit order and will be executed at the best price available between $28 and $25. In other words, your guaranteed selling price is between $28 and $25.

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2009-10-20T10:20:00.001-07:00

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Market order vs limit order

2009-10-14T06:05:00.000-07:00

This is for new investors who are little confused about the difference between a market order and a limit order.

I will explain the difference: A sell or buy market order is when you ask the stockbroker to buy or sell a security at the current available price on the market. In other words, it is unrestricted. A sell or buy limit order is when you specify exactly at what price you want to sell or buy the security. Let us look at some examples:

Market order: Assuming that stock ABC is trading at $10 per share on the market. Trader A places a market order to buy 100 shares of stock ABC. That means, Trader A wants to buy the stock at any current price the stockbroker can get it on the market. If the price goes to $12 the stockbroker will buy at that price. If it goes to $8, the broker will issue a buy at $8. Remember that your order does not get executed right away for most of the time. The stockbroker will execute your order as soon as he gets to it.

Limit order: Assuming the same stock ABC is trading at $10. Now, Trader B put a limit order to buy that same stock ABC at $8. That means, the stockbroker will only execute the order if the price of the stock goes to $8 or below. If the price never reaches $8, there will not be a buy execution on behalf of Trader B.

From the examples above we could determine that a limit order works in your advantage as an investor. It is possible to end up paying a much higher price by placing a market order instead of limit order because the limit order gets you exactly what you want. That is trading 101: “buy low, sell hi”.

It is definitely clever as an investor to use limit order rather than market order. I personally do not use market order. You are at the mercy of your broker. It is like giving money away to your broker.