Massive profits from Penny Stocks

Hot penny stocks can make you massive profits even if you don’t have that 

much money to trade with.  Use caution when trading penny stocks, but don’t overlook the potential rewards.

Stock trading in general has a simple goal, you want to buy shares of a company at a certain price, and sell them for a larger price later on.  You deposit money in an account with a brokerage so you can go online and start buying/selling stock, and start receiving the profits from your trading.  

You can buy shares of a company and hold them for as long as you want, a day, a week, a month, years…it’s completely open ended.  There is also something called day trading, where you buy and sell the stock within a very short period of time.  This can be seconds, minutes, hours, or the entire day.

Day trading large NYSE stocks often involves buying a huge amount of stock and trying to profit from a tiny fluctuation in price, let’s say 1% for example.    One percent is a very small profit, but if you’re buying £100k worth of stock, one percent is a thousand Pounds.

Hot penny stocks are extremely volatile and make rapid changes in price.  Since the price changes so much, you don’t have to have or invest nearly as much money to try and make a profit like £1,000.  A low priced penny stock can easily make a gain of 100% within a day or sometimes much quicker than that.  That means you can only invest £1,000 and STILL make £1,000 in profit in less than a day.

So to make big gains day trading the regular stock market, you typically would have to invest a ton of money.  If you play the penny stock market, you can make gains just as large or larger than Wall Street…while playing with MUCH less money.

Penny stocks have always been seen as a way to level the playing field with the wealthy.

In fact, some of the most famous and respected hedge fund managers first started building wealth by trading penny stocks.  A little known secret is that several powerful hedge funds are heavily involved in the penny stock market…but they’re under no legal requirement to disclose this to their clients or to the general public so virtually no one knows about this!

If you have the right penny stock picks, you can make just as much money as wealthy traders…but without having nearly as much money in the bank.  It’s a great way to make big profits without needing to have a huge bank account.

Where Do Penny Stocks Trade?

Penny stocks trade in many places. Some stock markets are very good for trading penny stocks, while others are very dangerous to investors. At the same time, some sources of penny stocks are reliable and trustworthy, while other sources are very risky.

I have always been a proponent of trading in penny stocks, but there are some markets that not even I would go near.

NASDAQ SmallCap Market

This is both the safest and best place to find penny stocks.

Companies listed here have regimented reporting requirements, and must keep in compliance with these to maintain their listing. This enables investors to have access to the company's financial results and ongoing reports.

Usually, the shares listed here will be $1.00 and up. If the shares of a company on the NASDAQ SmallCap begins trading for less than $1.00, the exchange usually boots these stocks, forcing them to drop down to the OTC-BB (see below).

Most financial quote and news services cover shares on the NASDAQ SmallCap market, so it enables greater information visibility.

As well, the increased visibility will improve trading volume and investor participation. Your brokers will have no trouble enabling your trades in NASDAQ SmallCap shares, and probably won't have any additional commissions or rules for trading these issues.

Shares on the NASDAQ usually have four-letter ticker symbols, such as PVAT, IDEV, and DRAX.

• Excellent investor visibility
• Strict reporting and corporate responsibility standards
• Easy to buy and sell
• Easy to get information and data about the company

OTC-BB (Over-The-Counter Bulletin Board)

The OTC Bulletin Board (OTC-BB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. It is owned and operated by the Nasdaq, so is very legitimate.

An OTC-BB equity security generally is any equity that is not listed or traded on NASDAQ or a national securities exchange. In other words, it is a system for creating some regulation and accountability for stocks "without a home."

• The OTCBB provides access to more than 3,600 securities;
• Includes more than 330 participating Market Makers;
• Electronically transmits real-time quote, price, and volume information;
• Displays indications of interest and prior-day trading activity.

AMEX

The American Stock Exchange, like the NASDAQ SmallCap, is an excellent source of penny stocks. You will find that shares trading here may have less volume than those on the NASDAQ SmallCap, but the companies are subject to reporting requirements and are followed by many news and quote services, so investors enjoy the same benefits derived from the SmallCap exchange.

Your broker will have no trouble trading in AMEX shares.

• Excellent investor visibility
• Strict reporting and corporate responsibility standards
• Easy to buy and sell
• Easy to get information and data about the company

Pink Sheets Penny Stocks

Do not buy these ever. The pink sheets are stocks that trade without any reporting requirements or regulation, and have no responsibility to you, the investor. They are very hard to buy and sell, as the trading activity in them is very low and sporadic.

The origins of the Pink Sheets go back to 1904, when the National Quotation Bureau began as a paper-based, inter-dealer quotation service linking competing market makers in OTC securities across the country. Since that time, the Pink Sheets and the Yellow Sheets have been the central resource for trading information in OTC stocks and bonds.

There are far fewer listing requirements. There are far fewer rules. This is what the stock market would be like in a post-apocalyptic world.

• Never buy pink sheet stocks
• Non-existent reporting and corporate responsibility standards
• Easy to buy and very difficult to sell
• No information or data about the company, or about the trading activity/prices of the shares

Penny Stocks Straight from Companies

It is possible to buy shares directly from the companies in some cases. The main reason to do this would be to avoid paying a brokerage commission. As well, it may be an easier way to acquire shares in a more obscure company than trading for them Over-The-Counter.

Besides the fact that I discourage trading in Over-The-Counter stocks, there are inherent problems with direct purchasing. There can be no assurances that you are getting a fair valuation based on prevailing market prices, and in most cases the quoted amount will be higher than you would have had to pay if buying on an exchange.

For thinly traded Over-The-Counter equities, it may be near impossible to get appropriate trading prices. OTC issues do not have any system of matching up buy and sell orders, so buying the shares is no different than buying a used car. The seller may be asking far too much, and perhaps far more than the most recent trades. The point is that you would have no way of knowing.

• Never buy directly!
• No brokerage commission charge
• Probably non-existent trading volumes
• Easy to buy, probably impossible to sell - the company will not even buy them back!
• No corporate responsibility requirements whatsoever!

Penny Stocks Over The Phone

Although it was more prevalent in the '70s and '80s, phone salesmen touting stock should be considered dangerous.

Under no circumstances should any investor accept an offer to purchase shares in a company that they heard about through an unsolicited phone call, fax, or e-mail!!

Be sure to watch the movie, "Boiler Room" to get a feel for how these scams operate. I highly recommend this movie, which will help drive the point home.

The companies are promoted aggressively, and in most cases are nearly non-existent, poorly run, fundamentally vacant shells. It is nearly impossible to resell shares in these equities, whether you have made a profit or a loss.

The promoters will be pressuring you with a time frame, and may demand immediate action. The stories of the promoted stocks border on incredible, and certainly, "...if their product or service is embraced by the public, the shares will skyrocket, and the industry will be revolutionized..." Hang up the phone. Don't say anything - just hang up.

For those that ignore this clear and precise warning, you will deserve the returns these stocks provide you with.

• Don't even think about it!
• Non-existent reporting and corporate responsibility standards
• Potentially non-existent company
• Easy to buy and impossible to sell
• No information or data about the company, or about the trading activity/prices of the shares
• Prices are arbitrary and baseless
• You are almost certainly being lied to, or aggressively mis-led

Canadian Markets

The Toronto Stock Exchange (TSX) and Toronto Venture Exchange (TSX-V) both list penny stock shares, some as low as a couple of cents. If your broker allows for over the border trades, we highly recommend getting involved with Canadian penny stocks. These companies are often trading so inexpensively simply because they are smaller in size (as opposed to being extreme long shots, or highly speculative). With Canadian penny stocks, there are literally thousands of good companies to choose between.

• Huge selection of penny stocks
• Potentially higher brokerage trading fees
• Good reporting requirements and corporate responsibility
• Good to medium availability to corporate data/information
• Ease of access to trading and pricing data
• Easy to buy and sell
• Good trading volume in most cases

Source: http://www.pennystocks.org/where-do-penny-stocks-trade.php

Why Trade Penny Stocks?

There are many reasons why a trader may get involved with penny stock.

Sometimes a new investor will want to learn the basics of buying and selling shares, and low-priced investments seem to be a good place to start.

Sometimes an advanced trader will get involved in these speculative issues to hedge a position, or play with some risk money.

Perhaps you may even have inside knowledge of the prospects and potential of a company you work at, and you would invest in their stock before the business really takes off.

Penny stocks are fun and exciting, which is why some people get involved. Kind of like a high-stakes hobby.

Based on my experiences from many years in the penny stock industry, the main reason people get involved with penny stocks is to try and get rich.

Of course, any combination of the above factors can act together to drive people into the penny stock markets.

What are your reasons for getting involved in penny stocks?

• Excitement / Enjoyment.
• To make money.
• You have some inside or specialized knowledge that you can profit from.
• You have a strong belief in a concept or idea of a company, you think the stock will explode in price.
• You don't want to miss the boat, while others are getting involved.
• You want to increase your portfolio's risk/reward exposure.
• To learn the ropes of penny stock trading, or just of trading in general.
• You think you know how to pick winning stocks.
• A more expensive stock you held took a price dive, and now you are holding a 'penny stock' unintentionally.
• To increase your portfolio's diversity and exposure to certain sectors.
• For the purposes of hedging strategies.

Are Penny Stocks For Me?

The suitability of penny stocks as an investment vehicle will depend on many factors, and only you can ascertain if they are appropriate for you. Factors affecting your situation will include, but will not be limited to:

• Your risk tolerance
• Your financial and investment position
• The aggressiveness of your trading goals
• Your expectations of returns
• Your level of investment experience

Sourse : http://www.pennystocks.org/why-trade-penny-stocks.php

Famous quotes day 3

7. "Invest in yourself. Your career is the engine of your wealth." - Paul Clitheroe

We all want wealth, but how do we achieve it? It starts with a successful career which relies on your skills and talents. Invest in yourself through school, books, or a quality job where you can acquire a quality skill set. Identify your talents and find a way to turn them into an income-generating vehicle. In doing so, you can truly leverage your career into an "engine of your wealth."

8. "Every once in a while, the market does something so stupid it takes your breath away." - Jim Cramer

There are no sure bets in the world of investing; there is risk in everything. Be prepared for the ups and downs. (To read more on how Cramer makes his pick, see Cramer's 'Mad Money' Recap: Tools of the Trade.)

Famous quotes day 4cont.

15. "The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton

Follow market trends and history. Don't speculate that this particular time will be any different. For example, a major key to investing in a particular stock or bond fund is its performance over five years. Nothing shorter.

16. "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett

In the beginning, diversification is relevant. Once you've gotten your feet wet and have confidence in your investments, you can adjust your portfolio accordingly and make bigger bets. (For more reason to reduce your diversification, read The Dangers Of Over-Diversifying Your Portfolio.)

17. "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch

When hit with recessions or declines, you must stay the course. Economies are cyclical, and the markets have shown that they will recover. Make sure you are a part of those recoveries!

The Bottom Line

The world of investing can be cold and hard. But if you do thorough research and keep your head on straight, your chances of long-term success are good. Refer back to these quotes when you're feeling shaky or are confused about investing. How are they relevant to your experience? Do you have any favorite quotes to add? (To learn more from great investors, read Greatest Investors.)

Investopedia http://www.investopedia.com/financial-edge/0511/the-top-17-investing-quotes-of-all-time.aspx#ixzz4QB22ReRT 

Famous quotes day 4

13. "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." - Paul Samuelson

If you think investing is gambling, you're doing it wrong. The work involved requires planning and patience. However, the gains you see over time are indeed exciting! (For more reasons to be patient, check out Patience Is A Trader's Virtue.)

14. "I would not pre-pay. I would invest instead and let the investments cover it." - Dave Ramsey

A perfect answer to the question: "Should I pay off my _____(fill in the blank) or invest for retirement?" That said, a credit card balance ringing up 30% can turn into a black hole if not paid off quickly. Basically, pay off debt at high interest rates and keep debt at low ones.

Famous Quotes day 3 cont.

11. "Know what you own, and know why you own it." - Peter Lynch

Do your homework before making a decision. And once you've made a decision, make sure to re-evaluate your portfolio on a timely basis. A wise holding today may not be a wise holding in the future.

12. "Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this." - Dave Ramsey

By being modest in your spending, you can ensure you will have enough for retirement and can give back to the community as well.

Famous quotes Day 2 cont.

5. "In investing, what is comfortable is rarely profitable." - Robert Arnott

At times, you will have to step out of your comfort zone to realize significant gains. Know the boundaries of your comfort zone and practice stepping out of it in small doses. As much as you need to know the market, you need to know yourself too. Can you handle staying in when everyone else is jumping ship? Or getting out during the biggest rally of the century? There's no room for pride in this kind of self-analysis. The best investment strategy can turn into the worst if you don't have the stomach to see it through.

6. "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen

Though investing in a savings account is a sure bet, your gains will be minimal given the extremely low interest rates. But don't forgo one completely. A savings account is a reliable place for an emergency fund, whereas a market investment is not. (To learn more, see Savings Accounts Not Always The Best Place For Cash Assets.)

Famous quotes day 2

3. "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett

Be prepared to invest in a down market and to "get out" in a soaring market. (For more, read Think Like Warren Buffett.)

4. "The stock market is filled with individuals who know the price of everything, but the value of nothing." - Phillip Fisher

Another testament to the fact that investing without an education and research will ultimately lead to regrettable investment decisions. Research is much more than just listening to popular opinion.

Famous quotes

2. "Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows." - Jim Rogers

While 10-15 year lows are not common, they do happen. During these down times, don't be shy about going against the trend and investing; you could make a fortune by making a bold move - or lose your shirt. Remember quote #1 and invest in an industry you've researched thoroughly. Then, be prepared to see your investment sink lower before it turns around and starts to pay off.

Famous quotes series

Famous Quotes

1. "An investment in knowledge pays the best interest." - Benjamin Franklin

When it comes to investing, nothing will pay off more than educating yourself. Do the necessary research, study and analysis before making any investment decisions.

6 reasons to trade in currency. 

Many investors are turning towards investing in the global currency markets, since the big slide in the U.S dollar took place in 2002. As this market is always open at some place or the other trading in these markets is a round-the-clock affair. There are a number of advantages that trading in these markets have. Some of them are discussed below. Read on:

1. Size of the market

The currency market can be considered as the largest financial market in the whole world. Everyday, nearly 2 trillion dollar is traded in this market. The liquidity of this huge market allows you to enter and exit your positions easily and without any difficulty. So you don’t need to worry about the price jumping too far before your trade is executed. Because of the large size of the market, it is difficult for any single group to come in and manipulate the market. This suggests that your analysis of demand and supply will probably be more accurate.

1. Easy entry

With an account as small as 250 dollars, you can get started in the currency market. In order to start making great returns on your investment, you don’t require having a lot of money. Anyone can take part in the currency market and take advantage of it.

1. Potential of profit

The potential of profit is what every trader wants to hear, and this market has a lot of it. It does not matter whether your currencies are going up or down, you can make money no matter what. All you have to do is to place your bets on a currency pair, if you see that it is going up. And, you have to sell it, when you see that the currency pair is going down. It is not that difficult.

1. Trading hours

The currency market is open 24 hours a day and 5 days a week. So, if you go to school during the day or work at night, you can still find time to trade currencies. Also, at different times throughout the day, different currencies are more active. So whenever you find time to trade, there is bound to be something that you can take advantage of.

1. Tax benefits

Presently, it is your current tax rate that the short-term capital gains are taxed at. And, at only 15%, your long-term capital gains are taxed at. Obviously, it is an advantage to pay less in taxes. In the foreign exchange market, it does not matter whether you are taking you profits two minutes after you enter a trade, or two months after you enter a trade. This is because, the first 40% of your profits will be taxed at short-term capital gains rates, and the remaining 60% will be taxed at long term capital gains rates.

1. No commissions

While trading currencies, you never have to pay a sales commission. You will be charged a commission by stock brokers and even discount stock brokers, for every trade you place – to get out of a position and also to get into a position.

So these are the advantages you will get if you trade currencies.

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How to become your own banker.

Here are four ways Universal Life policies can be beneficial:

Life Insurance Policies Build Cash Value

Cash value, unlike the death benefit, is one you can use while you're alive to borrow against or to reduce premiums down the road. The cash value of a Universal Life policy accumulates at a tax advantage basis, which means the money you withdraw is not taxed until the amount you withdraw exceeds your bases (the amount you have already paid in.)

Replaces Your Savings Account

For the reason above, you can build up a nest egg for retirement. Policyholders should allow their policy to grow before tapping into the cash value for retirement income.

Lower Interest Rates than a Bank

Life insurance companies often offer cash-value loans at interest rates lower than a traditional bank loan. Of course, you're not obligated to pay back the loan since you're essentially borrowing your own money. However, it is important to note that any money you borrow, plus interest, will be deducted from the death benefit when you die.

Annual Dividends

Another tax advantage of this type of policy is the payment of dividends by many insurers. Dividends are generally taxed as gains. In the case of life insurance however, the IRS treats dividends as a return of premium and they are not taxable. While dividends are not guaranteed, some companies have paid them every single year for over 160 years. You can use your dividends in a variety of ways-you can take them in cash, leave them to accumulate interest, or use them to increase your policy's face amount or death benefit.

Although Universal Life insurance is not considered to be an investment, there are certainly more benefits than using traditional banking methods and can become a part of your assets plan.

What are the benefits of universal life insurance?

Universal life insurance provides an additional level of flexibility over term or whole life insurance because you are able to adjust your insurance premium payments.

Additionally, any growth in your policy's cash value is tax-deferred. This means you won't have to worry about paying taxes on the growth until the time of withdrawal. At the same time, your policy has a minimum guaranteed rate of interest, meaning your cash value's growth will never drop below a certain level. This way, you will have peace of mind knowing that funds will always be there if you need them.

Learn more about Universal Life insurance and see if it is right for you.

Start your IUL now to build wealth by using it as leverage to borrow against it and taking out tax-free loans.

Article Source: http://EzineArticles.com/9382973

What do you think of this article from Chard Shoop? Good idea or very risky?

Generating extra income

You should have seen the look on my wife's face.

Not one, not two... but three new credit cards rolled into our house.

My wife despises everything related to debt. To her, any debt is bad debt, and credit cards are the worst kind of debt. So for her to find three new credit cards in the mail... you could say she wasn't very happy.

While I understand her concern, I didn't open these credit cards to rack up debt. Instead, my plan is to use them to generate cash in the form of cash-back rewards - the only proper way to use credit cards.

Investing can be thought of in much the same way.

Like using credit cards to go into debt, you can lose a ton of money in some investments, depending on your strategy.

Or you can invest wisely, and turn the market into your own personal cash-back credit card - but one far better than any offer you will ever see in your mailbox.

Let's use my credit card analogy to help bring the point home.

I don't use those cards to buy unnecessary items. Instead, I use them for everyday items that I would have purchased anyway - like gas and groceries - and receive cash back for doing so. It's as simple as that. The key here is that these were items I would have purchased anyway, regardless of the method. So I might as well get paid to do so, right?

That's the approach I take in one of my investment philosophies.

If you are already looking to own stock in a large, stable dividend-paying company, then why not get paid to do so?

But it gets even better...

The strategy I'm about to explain isn't just getting paid to possibly buy something you were already looking to acquire anyway - you also get to name your own price. And if you don't get the price you want initially, you can repeat the process again and again, getting paid each time and essentially creating your own cash machine.

Here's how it works...

Put Cash in Your Pocket

It's the only investment strategy I have ever seen or heard of that offers such a win-win scenario.

It's easy to implement, and it is probably already available in your brokerage account. Just sign a few simple forms, and you're on your way to controlling your own stock market cash machine.

The strategy is simple: Sell to open put options.

Unlike a normal put option, where you buy a put option to gain the right to sell the underlying stock at a certain price, this strategy takes the other side of that trade. When you sell a put option, you are assuming the obligation to purchase the underlying stock at a specified price - i.e., the strike price.

This is what makes put selling a win-win scenario.

To keep it short, here's exactly how it works.

The Path to Steady Income

Let's say you want to own stock in a large, stable dividend-paying company like AT&T (NYSE: T).

Instead of paying the market price to acquire AT&T stock, and watching the shares bounce around, you can sell a put option at a lower strike price - i.e., the price you wish to pay for the shares.

In doing so, you are effectively getting paid to name your price. And you don't even have to buy AT&T stock until the shares fall to your target.

But it gets better. These sold put options have an expiration date.

In other words, you can pick an option with a one-month, two-month, three-month, etc., expiration date. If the stock trades below the strike price, you get to buy a stock you were already looking to acquire at a bargain price. If the stock's price stays above the strike price, you never have to purchase the shares.

In both cases, however, you get paid! What's more, if you still want to own AT&T at that price, you can repeat the process over and over again, collecting income every time.

If you go in with the intention of owning the underlying shares, there really is no downside to this strategy.

This brings me back to the trio of credit cards I mentioned before.

By taking this same cash-back logic and applying it to the investing world, you can achieve a greater than 90% win rate and essentially create your own cash-generating machine - who doesn't want that?

Article Source: http://EzineArticles.com/9562370

Tools and Strategies for Successful Trading

Tools & strategies to be successful in trading.  Good advice

Four ways to buy Silver for Investment

Investors buy silver for three reasons: as investment, as hedge against inflation, and for replacement of fiat currency. While many dividend growth investors see no value to holding silver, because it pays no compounding dividend, I believe some precious metal give extra-diversification to any portfolio.

Buying for investment is simply a supply/demand trade on price increase. It's a commodity trade counting on the silver spot to rise. Or, it could be buying silver coin with numismatic value, again hoping for value appreciation.

As an inflation hedge, we can look back to the 1970's when inflation reached 13% and silver prices skyrocketed. During this period, people held silver to offset inflation, and as its price rose investors grew out of the woodwork. Of course, by the 1980's most personally held silver sold off at profit and went into paper investments.

For people who fear paper currency default, we should consider that central governments around the world, including our own Federal Reserve, print money as a solution to stagnant economies. The threat of any countries paper money becoming worthless is real, since none are redeemable in gold or silver as they were at one time.

In 2002, we saw a severe financial meltdown in Argentina and Paraguay when banks closed, only to reopen later, but limiting the amount of money depositors could withdraw. Argentines who converted cash to gold or silver coin were adequately protected during this crisis, while others were not.

Printing money, deficit spending, and endless debt increases has become the norm for leaders both home and worldwide. For no other reasons than these, it's wise to hold some assets in precious metals.

Best Ways to Buy Silver

Regardless of your reason for holding silver, the aim is to buy silver priced on the weight of the precious metal. For example, silver bars and coin are priced on weight, meaning that 1-oz coin or 1-oz bar carry the same amount of raw silver.

You also want to buy silver that is.999 fine silver. The best source will be a reputable dealer and not eBay, Craigslist, etc. Avoid scammers by using reputable dealers like American Precious Metals Exchange, JM Bullion, Provident Metals, and others with proven business practices.

Coins

Silver coins are minted specifically by a central government and come with an official guarantee of both weight and silver purity. In the U.S., the American Silver Eagle is the only federally minted coin, but nations like Canada and Austria also offer coinage. Popular choices are:

• United States - American Silver Eagle
• Canada - Canadian Maple Leaf, Canadian Silver Cougar
• Austria - Silver Philharmonic

Silver Rounds

Silver rounds resemble coins but private mints make rounds and they're not backed by a guarantee like government assurances. They are less expensive (lower cost over spot) and good for larger quantity purchases but are not legal tender (money). However, they're tradable in a financial meltdown, as the weight of raw silver is all that matters.

Silver Bars

For larger amounts of silver, bars are the best choice. Silver bars can run in 1-oz, 10-oz and 100-oz options. Larger silver quantities are also available in bars. Buying larger amounts offers a better discount off the spot price.

As with rounds, bars are not backed by the government. The goal, however, is to acquire larger amounts of silver at lower premium that is easily storable and tradable at the market price.

Junk Silver

Junk silver is really not what it sounds like - a 'junk' investment. It's any old silver coin in fair condition without collectible value but with true silver content. In the United States, pre-1964 nickels, dimes, quarters, half-dollars and dollars carried 90% silver content. Junk silver is important since these coins have the lowest spot price of any physical silver.

Summary

Past actions from central banks often prove that they don't have many weapons against financial stagnation. On the other hand, central banks have proven they can print and offer cheap money backed by nothing more than promise.

Holding some amount of precious metal is prudent. Even for a dividend growth and income investor, there is nothing wrong with holding precious metal, and silver provides the most affordable options.

Article Source: http://EzineArticles.com/9382694

Trump's effect on the stock market

Only time will tell?

6 reasons to invest in gold.....

Gold is everywhere on the planet but not in significant concentrations. It's difficult to understand the appeal and superiority of gold, but gold is respected throughout the world for its value. Because of the respect it commands, here are six great reasons investors should own gold.

Gold Holds Its Value

Gold has a history of holding its value. The price of gold if often volatile in the short run, but it always holds its value over a long-term. For this reason, it serves as a strong hedge against inflation and currency erosion.

Supply Constraints

Gold is extremely rare. According to geological data essentially all gold is found only in low concentrations in rocks. And, a new gold mine can take upwards of a decade to bring in new ore supplies, with depletion starting as soon as the first load is brought out.

From 1990 until 2008, a large amount of the supply of investment gold resulted from bullion sales from the vaults of central banks around the world. However, governments and central banks are now net buyers of gold, meaning they are buying and hoarding more gold bullion than they're selling.

Gold Doesn't Default on Promise or Obligation

All governments issue paper fiat currencies (dollars, euros, pounds, yen, etc). Fiat currencies have no real value and are backed by government decrees promising to make good on the set value. Throughout history, governments have printed too much currency, as the U.S. has done at warp speed since 2008.

Historically, governments have also created inflation and devalued currency buying power as a measure to increase trade and exports. This also makes it easier to finance debt and social programs, such as Social Security. The problem is that retirees receive promised Social Security checks with no guarantee how much goods and services the checks will buy.

Deflation

Deflation rooted in a country causes prices to decrease, business activity to slow and a central government burdened by massive debt. Money supply and credit is greatly reduced and overall spending is slowed a trickle.

Unemployment and economic depression become the norm. During these times, the relative purchasing power of gold soars while other prices drop sharply. In fact, people often subsist from a street level system of barter.

Geopolitical Uncertainty

Gold retains its value not only in times of financial uncertainty, but equally in times of geopolitical uncertainty. It is often called the "crisis commodity". When a country's government is in crisis, the reserve currency collapses and can no longer fund its deficit.

The market, however, returns to natural monetization as the means for life to continue at the grassroots level. At this point, no other significant currency in the world offers any refuge, but gold becomes a universal currency.

As government balance sheets weaken, global banking systems deteriorate, and deflation sets in, gold in a portfolio makes good sense.

Portfolio Diversification

As emerging markets have grown, increased demand for gold has risen. In these countries gold is often intertwined with the culture, and new money is available to stockpile bullion. India and China are two nations that are large gold consumers.

Many Americans are beginning to see commodities, particularly gold, as an investment class to allocate money. A characteristic of a diversified portfolio is one that has investments not closely correlated to one another.

As bonds have negative correlation to stocks and rising interest rates, gold also has negative correlation to stocks and rising rates.

Gold tends to prove its own worth as money. Gold is an "insurance policy" whose value to an investor is universal monetary worth.

The Bottom Line

Gold is an important part of a diversified investment portfolio, because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline.

Investment demand for gold has greatly increased, but new mine supplies will not increase in the near future, with declining new supplies more likely.

Gold has historically endured as a portable and indestructible safe-haven against declining wealth. Gold over a long-term gives diversification to a well balanced investment portfolio.

Article Source: http://EzineArticles.com/9326897

How To Invest In Stocks And Bonds For Beginners

How To Invest In Stocks And Bonds For Beginners

Day Trading

In the world of finance a trader is defined as someone who buys and sells financial instruments like stocks, commodities, derivatives and bonds in the capacity of an agent, speculator or hedger. A day trader, then is a trader who specializes in buying and selling these instruments within the same trading day. Trading begins and ends with the opening and the closing of the markets and may include a few or into the hundreds of orders per trading day.

Day traders belong to one of two groups, institutional and retail. A trader who is an institutional part of the equation works for a financial institution like a bank an has access to many resources, tools, and equipment, not to mention a large amount of capital with which to trade. They can trade continuously throughout the market day since they always have fresh fund inflows at their disposal.

On the other hand, those on the retail side of things use retail brokerages and trade with their own capital. It is easy then to see how institutional day traders have a certain advantage over their retail counterparts.

If you have ever watched the market you will know that it goes up and down throughout the day. World events have a lot of influence on which way the market will go. They are trained to take these little price movements and make them into something big, like big profits for their clients. When you are only trading within a day period the experts say that the more volatile the market is on a given day, the better a day trader will do. If the market is flat or not moving much on a given day, the opposite is true, and a day trader may not be able to work those great deals.

To be a day trader you need a certain know how of the markets, and the proper equipment, tools and insight to trade the right platform every day. The successes go to those with the most information on any given day. Traders also have to know when to move, when not to move and when to get out of a trade which can be a thrilling experience or one fraught with stress and panic, especially with a new trader.

Trading is a tough world to get into and is one that is often associated with burnout among its members. You can win big or lose big, it's all in the markets and how a trader works them.

VTC Traders Consortium offers top of the line trader training for S&P 500 E-mini futures trading. We can improve an already skilled trader to be at the top of their game or help the beginning trader who wants to supplement their income. We aren't like the rest--we're the best! Learn more by visiting http://www.vtctraders.com today

Article Source: http://EzineArticles.com/9512845

The 3 Most Important Rules of Investing

Can i have some feedback on these 3 rules of investing?

Investing vs Trading: What is the difference?

This is a commonly asked question that beginners have when they want to start managing their own brokerage accounts. Since most people are interested in stocks, I will use equities to explain the difference between these two strategies. Realistically, this goes far beyond equities, and there are many investment or assets types that I could use as an example.

What is an Investor?

A simple explanation of an investor is someone who buys stock in a company to make money off the companies operations. You commonly hear the terms Dividend Investor or the Buy and Hold Forever Strategy. This is someone who buys a stock because they think the company has the potential to grow in the long run. In macroeconomics, the long run is defined as over a year or more than one operating cycle. An investor will have a long-term outlook and some investors like Warren Buffet will buy and hold the same company for a lifetime.

What Does A Winning Investment Look Like?

A smart investor will look at the accounting and the fundamentals of a company because that is the way to see how a company has done in the past. Then they can speculate on how this company will do in the future.

The fundamentals of a business can be anything that gives a business an edge over their competition. For some companies, this won't be things that directly show up in their financial statements. For example, I invested in a REIT because they had the best management team. This management team was more experienced than their competitions and this investment outperformed all the other REITS.

From an accounting perspective, a good investment will have an increasing net income, a balance sheet with improving assets, and a great looking cash flow. You don't need to go to school and learn everything about financial statements but knowing the basics will help you with making informed investment decisions.

When someone holds a stock they want to make a profit through growth or get paid through dividends. This makes fundamentals and accounting important because they will tell you that this company can increase in size, continue paying you a dividend, or have a growing dividend.

Trading

A trader is someone who will buy and sell stock due to price volatility. Price volatility is the short-term price changes. This means that a trader will look at the short term trends instead of how well the company is doing over the long run. A trader will focus less on fundamentals and accounting. Instead, their focus is on Technical Analysis and other short-term price drivers.

The timing of a trade will be much shorter than an investor's time frame. There are a few basic types of traders. One is a scalper or Day Trader who has extremely short term trades. By definition, these are people who hold a trade for less than a day. Another example is a swing trader. These traders hold an investment more than one day but will sell the trade off the trend swing which is normally less than a week.

What does a Successful trade look like?

This is really simple. A successful trade is when someone's trade hits their intended price target or they hit their profit goal. Since traders are in a trade for less time they are in the market and out of the market as quickly as possible. A trader wants their trade to hit its price target as quickly as possible.

Another important thing is that they will set price goals. A trader will go for a small gain at a time. An equities day trader might want 1 percent gain a day where a swing trader might set a goal of 5 percent a week.

Article Source: http://EzineArticles.com/9528234

WHY 90% OF TRADERS LOSE MONEY

90% of traders lose money, this is a good strategy approach. What do you think?