FAP Turbo

Make Over 90% Winning Trades Now!

Monday, January 11, 2010

Penny Stocks

By John Jerimiah

Know a tiny bit about the types of trades that you want to see made on your behalf and what kind of firms that you want to speculate in. There are a few that will be solid performers no matter what the economy looks like, and there are those that are folding left and right. Keep your head up and don't be scared to put your foot down if you feel uncomfortable with a recommendation.

Between the 2, short term trading is by far, the more dangerous option. Long-term trading requires more careful consideration and movement, and therefore gives the trader time to reconsider or to find out additional info before going on. Short term trading usually is quick moving and you must notice that only a few people ever have more than very fleeting success in the near term trading market. Knowing this, if you still choose to proceed, do so carefully. Be vigilant that you remain under your loss cap and know your limits at all times.

Short term trading specifies that you know quite a lot of data up front. You've got to know the stock that you're looking to trade inside and out- its trends, its volume, and its volatility. You have to know what this stock has been doing prior to the present, and what it is most inclined to do in the future. If you're at all doubtful about any of the aspects of the stock, then do your research before even thinking about investing at about that point. Losing all of your cash on one ill-planned investment block isn't going to help anybody in the long run.

Glance at the stock's trend. How is the stock behaving from day to day? While most short term traders will be satisfied with tracking a stock for one or 2 days, the more wary trader will wait till they have compiled at least a week or two's worth of information in order that they can see what the average trend looks like.

Volatility is the actual movement of the stock exchange ; are there many moves in either direction? Is the market heading up in a large surge or plummeting downward? Or has the market flattened out and turned stagnant? Knowing this info is critical, as it could indicate whether there is a system wide trend beginning or if a negative or positive trend is affecting only one or two isolated stocks.

Volume simply alludes to the number of purchasers or sellers of a particular stock and can be indicated by the other info in most situations. Volume can notice the effects of little traders selling of 1 or 2 blocks of stock or larger traders selling larger amounts of their own stocks. Either way, the volume of trading will indicate whether or not it is a hot seller's market or a more cool, customer's market.

Volume, volatility and trend are important aspects for choosing your short term investment stocks, but it is important to be similarly informed about the very next step in the trading process. You know how to choose hopefully the right stock, now did you know the simplest way to continue with the actual trading of it? - 23210

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home