Let me point out that penny stocks are a bad investment. Penny stocks describe those companies whose stock cannot be traded on an organized exchange like the New York Stock Exchange because the company does not fulfill one or more of the requirements of the NYSE. Penny stocks are typically traded over-the-counter (OTC), also known as the Pink Sheets. Investing in penny stocks is highly speculative. As an investor myself, I would not recommend penny stocks for anyone. Instead, I would recommend safer investments like mutual funds and index funds.

In the DJIA, the prices of the 30 component stocks are added and then divided by something called the Dow divisor, which is constantly adjusted. The divisor is in place to buffer for the effects of price changes from events like splits or dividends. The divisor is currently 0.132319125.

If you need more info, these articles explain it in detail:
http://www.djaverages.com/?view=industrial&page=calculation
http://www.investopedia.com/articles/02/082702.asp
http://www.investopedia.com/articles/exchangetradedfunds/08/index-debate.asp

Hope that helps!

I would steer away from hyper-popular stocks like Apple or Google as they are pure sentiment plays and don’t really trade on their P/E. Stick to real companies that produce tangible products that we consume on a daily basis like oil and retail – you are less likely to have nasty surprises there.

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The good people over at the FTC want to make sure you know that I can make a commission for telling you about this, but I’m sure you’ll be glad I told you about this system.

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Technorati Tags: penny stocks, psychometric science, stock picking service, stock picking system, winning trades

ome people have the opinion that you can’t really make much money with penny stocks, (otherwise known as undervalued stocks). They say that the risks are just to great for anyone to ever really benefit from them.

It’s sometimes referred to as gambling.

It’s actually quite the opposite.

The people who make these statements just have no real clue how to really make money with penny stocks. They think they can invest in them like they invest in their longer term investments. That doesn’t apply here and simply never will. They’re missing out on something great that can really make them a lot of moolah.

First things first, what you have to learn to do is to control the risk involved when you try to make money with penny stocks. One way that I do this is by looking at patterns in the prices of several different stocks. This is very helpful because I can see what the stocks normally bottom out at and when they normally peak. With this information I can buy and sell at the right time and make some serious profits with little to no risk involved, generally speaking.

When I do this, I always make sure to only invest in stocks that have a good trade volume. The higher the trade volume, the less risk is involved in the trade. I stick with stocks that have about 100,000 weekly trades. These stocks normally stick to the patterns they have very well. They are the stocks that I make the most money on. I have investing in stocks with less trades but never with any real success.

Always remember, you can make money with penny stocks. It is all about having good tools, using your head and of course, determination. It’s not a get rich quick scheme, although you can get a great return on your investment. If you really want to make good money on the stock market and you are the type of person that doesn’t give up, you can do really well!

Thank you for reading and best of luck to you!

Clay Michael Walker
http://www.articlesbase.com/day-trading-articles/how-to-make-money-with-penny-stocks-723966.html

Many people just like you want to get started investing in the stock market, it’s just that it seems a little intimidating at first and deciding where to start can be a bit challenging. The fear of losing or making money can be a thrill or a set back, depending on your personality. Well, with this tool that I’ll show you, you can start get your ‘feet wet’ in the stock market without having to risk more than a few dollars.

One common misconception about investing in the stock market is that you need a full time broker. You don’t. The days of stock market brokers with high fees are over. You can actually get started with the stock market online easily if you just have the right tools to make trading simple for you. Also, with resources such as etrade and Scott trade, you can do all of the investing entirely online and at your leisure. This puts you in full control of your money and saves you quite a bit.

In addition, learning how to start investing in the stock market is using a simple budget. This is often overlooked, yet very important! Many beginners find a stock they think will do good and put far to much money into it too quickly. Begin small and grow as you feel more comfortable. Start out with only investing $25 to $50 in one stock at a time. This will save you money and help you gain valuable experience. This is a very important step in learning how to start investing in the stock market so do not skip it.

Always start slow.

Another important step in learning how to start investing in the stock market is to never jump in blindly. If you find a stock and have a gut feeling it is going to do good, do not rush into it!

Take a little extra time and do your research. Frequently, a company may be days from releasing important news that may greatly change the price of the stock. Make sure your purchases are well thought out and planned.

Finally, learning how to start investing in the stock market is to know that occasionally, things will simply not go your way. It’s the nature of the business and it’s a game. There is the thrill of quick money and the pain of losing it. Once again, start out slow, with small investments and grow gradually.

With patience and learning, you’ll win much more than you lose. The stock market is very profitable if you use your head.

Learning how to start investing in the stock market is a fun, new adventure for many people that will make you jump up and down with excitement at times, and have you pulling out your hair at other times. That is the nature of the beast and what makes it so exciting.

Clay Michael Walker
http://www.articlesbase.com/day-trading-articles/how-to-start-investing-in-the-stock-market-723970.html

BY.- http://www.StressFreeTraders.com

In the stock market it’s not impossible to watch a stock move up dramatically in a matter of hours or days. Investors and traders can make great money and fatten their wallets every time this happens.

This seems great for every one that wants to try their fortune in the stock market, but the problem is that if you don’t know what stocks to look for and how to properly approach them you could end up wasting cash instead of making your profits grow. That’s why the most important aspect of stock trading is the knowledge FILTER you employ to make your buy and sell decisions.

There are many “fantastic” stock systems and trading strategies out there, but you need to test them in order to discover which ones help you the most. That’s part of your homework as a stock trader. Test, test and test again.

Complicated stock trading strategies that rely on a “boat load” of technical analysis indicators can make you slow, and being slow when trading stocks can be as dangerous as not knowing what to do in the first place.

The worst thing that can happen to a beginner trader is to get information overload. It’s better to go step by step, and test a practical stock trading strategy that can show you how to focus on concrete ways to make money while picking SOLID hot stock trading opportunities once at a time.

In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader.

Fortunately some sites on the web can show you how to take advantage of stocks in a practical way every week by minimizing risks. One of those sites is Stress Free Traders at http://www.StressFreeTraders.com

They focus on picking certain stocks that can generate excellent gains on the same day.

Visit them today and learn how to take advantage of the market by picking the hottest opportunities this season.

Warren James
http://www.articlesbase.com/day-trading-articles/hot-stock-picks-gt-best-stock-pick-for-2009-picking-good-stocks-in-a-bad-economy-706775.html

Learning how to pick penny stocks for profit is very simple, yet frequently overcomplicated by new investors. Folks are naturally afraid of trying any form of investment like penny stocks and often hesitate and miss out on great opportunities.

It is simply not as hard as it seems like it may be.

Penny stocks are simple and involve little risk. All you need to know is how to pick them. With the right tools, you will be day trading like a pro and making money online in no time.

The first step is basic research. This should be your focus when you start. If you know how to do the basic research, then you will know how to pick penny stocks correctly. I once just went by gut feelings, investing in random penny stocks just hoping they would do well. Needless to say, I did not know how to pick penny stocks then. It was not until I took my time and researched before trading that I realized how to really learn how to pick penny stocks. I now trade with confidence and making good investment decisions is alot easier. So do not get in a rush and skip your research as it may save you from a few bad investments.

Secondly, look for what I like to call, undervalued companies. These are companies that are in a deal with very large companies that dramatically raise their stock price quickly. These are companies that specialize within a large industry.

For example, the company may make a certain computer part that a large computer company needs or wants exclusive rights to.

They make a deal and you make a 400% profit that day from the specialized company! Not too bad is it? Now that is what learning how to pick penny stocks is all about! A little extra research can really pay off.

The third step in how to find penny stocks that are profitable is a little more risky. It involves finding a company that is going to make a big announcement.

This is another one of those, “how to pick penny stocks” methods that can make you some quick cash. You simply have to research the company and find out if thier stock price has been steadily improving.

If so, I normally make a quick investment in it.

This can make you some really good profits or it can give you a big headache. Everyone has a different experience and there is no guarantee of profit with any investment.

Investing in penny stocks can be difficult at times but is very rewarding if you do your homework. There are really good tools available to use and are very inexpensive to obtain. I highly recommend http://pennystocksforprofit.com.

I have been a light day trader for nearly 4 years now and it has become more and more of a primary income source, although I haven’t quit my day job yet!

Thank you for reading my article, “How to Pick penny stocks“. The possiblities are endless, I just certainly recommend that you do your homework and take it slow.

Clay Michael Walker
http://www.articlesbase.com/day-trading-articles/how-to-pick-penny-stocks-723977.html

China has decided to end further investment in the US and pour it backinto itself. Foreign investors are avoiding all US investments and are buying China stocks. China is still expected to growby 8%in 2009, true its less than its previous annual growth of %11 but it still great, when considering that the US is expected to grow only %2 in 2009.Chinese are still buying like crazy, they want better and more comfortable lifestyles. Chinese banks have not been exposed to the recent sub-prime disaster like other banks around the world. China is stillgrowing like crazy,and does not seem to be slowing up any time soon.

Here are some Chinese Stocks which have also changed trend recently, they have gone up a lot since December, and they are all just recently started uptrendsalong with China’s Index.

1. ACH (Aluminum China)
This stock looks like it has bottomed in October. November’s low is higher than October’s low. ACH has just recently closed above its 50-day EMA . MACD positive.

2.PTR (Petrochina Co Ltd Adr)
MACD turned positive, it hasn’t done that since last April. Just began an uptrend (higher highs and higher lows). PTR has recently closed above its50-day EMA, another very bullish sign.

3. CAAS (China Automotive Systems Inc)
This stock has been in a nice uptrend since December. MACD positive. Recently closed above its13 and 50-day EMAs.

4. NCTY (THE9 LTD)
This stock has been in a nice uptrend since December. MACD positive. Recently closed above its13 and 50-day EMAs.

5.SHI (Sinopec Shanghai Petrochem Co)
This stock has been in a nice uptrend since November. MACD positive. Recently closed above its50-day EMA.

Shoshana Antelman
http://www.articlesbase.com/investing-articles/5-chinese-hot-stocks-to-buy-now-719669.html

THE GOOD OLD CHEAP STOCK:

Have you ever brought a stock that you thought was cheap, that ended up costing you more than it was really worth.

The stock market can be the place that people go to when they want to make money. We all dream of buying a stock for 10 cents and see it go to $10.00, how often does this happen. So are we better off looking at quality stocks that will consistently go up, as opposed to dreaming of finding that big moving stock.

The meaning of cheap stock, that is, stocks that they are trading under 60 cents or below, are always enticing – because you put down a small amount of money for a potentially lucrative return. It also looks good because with your investment you are getting a lot more shares, or contracts for you amount invested.

However, for many investors, this scenario is just a pipe dream to buy that stock at 10 cents and see it go to $10. Does happen but not very often and it can be very costly. Sometimes they are cheap for a great reason, they are NO GOOD

So what are the downfalls to cheap stocks?

How can you identify if they are cheap These cheaper stocks can also be categorized by their market capitalisation (that is, the total number of shares multiplied by the price per share). Which is the total value of the company If a company’s market cap is less than $100 million, the company is considered a fairly small stock, or a "small cap stock".

So is bigger better, or are small Fish sweeter, Will they grow? Historically, small cap stocks have outperformed large cap stocks in terms of returns. However this is not always the case and you have to remember the saying risk versus return. This isn’t because a lot of cheap, small companies are better investments than large companies, but because almost all big companies were small when they first sold stock. Everything normally starts out small. Microsoft started in a garage, and now they are one of the biggest company in the world. Most large companies are through growing or are just fighting for market share.

Money-hungry investors turn to small stocks to buy, because these stocks are cheap and it looks like the bigger companies have not much room to grow. Right? We all want to get rich from the stock market, otherwise we would not trade? True? Read the Fine Print- Be careful of ‘the cheap stock’

Traders and investors will often flock to internet chat rooms and talk up a cheap stock, saying they are going to find large amount resource, or they are doing a big deal with a big company. Why does this happen because people buy it and then want someone else to continue to buy it.

This is called "pumping and dumping" and it happens all the time. So make sure you are careful. As if this was true what is being said in the chat rooms, it would be inside trading. Illegal so make sure you do you own homework.

A stock that maybe trades only 5,000 shares a day is a good example of this type of scam and highly illegal. So do not fall into the trap. Otherwise you will lose your money. By pumping up the stock it creates the price to move higher for no good reason. This stock will soon be a DUD Trade. This Stock used to trade at $5 now its 50 cents. So that’s cheap? Wrong

Another thing to avoid is a stock that has dropped significantly in price. Just because a stock looks cheap doesn’t meant it’s going to return to glory and you’ll make yourself a big profit. The reason they fall is because something fundamental may have changed, they could have lost most of their revenue by losing a contract, or could be sued there are a host of reasons for this stock to fall.

You have to ask yourself why the stock fell in the first place? Those odds aren’t good that these stocks will rebound. The odds aren’t in your favour. Following the trend, remember trend is your friend.

BUT REMEMBER THEY CAN REBOUND..

Remember, however, that stocks that have crashed significantly usually continue in one direction: down. Look at the rest of the sector, see how they are performing. Something also to consider is make sure you do your research on finding a great broker, otherwise bad brokers can make you broker. They can be selling and promoting these stocks from time to time, why as they have clients that are losing money, which they want to help them make money. This can be the case when they have really big clients. We have researched these broker to find out who we believe is the best. To find out more find out from us or email support@cfdfxreport.com

singapore trader
http://www.articlesbase.com/day-trading-articles/stock-market-the-cheap-stocks-that-end-up-costing-a-fortune-698567.html