Archive for the 'Penny Stocks' Category

Day Trading Online – The Problems and Pitfalls

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Day Trading Online - The Problems And Pitfalls

While day trading online has made many people some good money, it has also left many investors very much out of pocket! The problem is that because many traders are fooled into thinking that it’s very simple, they don’t really know what they are doing when it comes to day trading stock online and they don’t really understand the risks involved. In fact, day trading online is not too far off from gambling, the only difference being is that you are not drinking all the way through it. Here are some of the main disadvantages of day trading online:
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Investing in Growth Stocks – 6 expert tips.

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Investing in Growth Stocks – 6 expert tips

Here are 5 rules that you should know about growth stock investing.

1) The bottom will fall out of your stock – All stocks will at some point top. Many beginners to growth stock investing think that if their stock is cruising up and making them money, then their stock is not subject to a top. However, the majority of stocks DO top, and once a leading stock tops, its average fall is around 70%. When stocks go down, they tend to REALLY go down, and big earnings can be wiped out fast. Many great companies, with good earnings growth have dropped due to the stock being over owned. With the stock advancing well, a large number of mutual and hedge funds buy into it, and no matter how well the stock is doing, there comes a point in which some of these funds make the decision to sell, and this leads to the drop.
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Picking Stocks – 5 Reasons to Avoid Your Industry When you Pick Stocks

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Picking Stocks – 5 Reasons to Avoid Your Industry When you Pick Stocks

Many investors consider that they should stick to the industry the work in and have experience of when picking stocks, and not dabble into anything unknown. Apparently, IT specialists should invest in software firms and surgeons in drug companies etc. They assume that their knowledge of the industry will lead to better foresight of the investment risks involved and to pick stocks which bring them greater returns.

To many, this sounds like a natural thing to do and an effective investment strategy. However, as I will explain below things are not quite how they seem..
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Penny stock fraud – the 3 penny stock scams that could target you at any time

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Penny stock fraud – the 3 penny stock scams that could target you at any time

Penny stock fraud has exploded since the advent of the Internet, and is set to continue to catch out unsuspecting investors for some time to come. This article gives you the information you need to avoid falling for penny stock scams.

Penny stock scam number 1: The Pump and Dump – The most common form of penny stock fraud, countless investors have been burnt through such schemes. It begins innocently enough, with a recommendation through, for instance, email about a company which for one reason or another is a real hot prospect. The stock is going up – you can see that by looking at the charts, but it still remains affordable: it’s a penny stock. Straight away you buy into the company. With your ‘insider’ information and the upward trend of the stock, you feel confident that you are going to earn quick on this one.
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